THE MARKET FORCES INFLUENCING THE PERFORMANCE OF US DRUG STORE CHAINS

Abstract

The United States drug store industry is expanding in both sales volume and store count. The most significant market forces shaping these trends are demographic characteristics, economic fundamentals and competitive formats. Demographically, the deceleration of population growth, the ageing of the population and the lifestyles of “baby boomers” are the most significant factors impacting on drug store performance. Limited new shopping centre construction, continued bankruptcies and acquisitions, and consumer concentration on price are the near term economic forces at work in the industry. Competitively, pressure is being applied from outside the industry by the addition of prescription departments in supermarkets and discount department stores. Internally, large discount drug stores have become a new merchandising force. These trends appear to favour the continued growth of well‐capitalised drug store chains that focus on a health and personal care image and emphasise convenience

Citation

Haake, J.H. (1991), "THE MARKET FORCES INFLUENCING THE PERFORMANCE OF US DRUG STORE CHAINS", International Journal of Retail & Distribution Management, Vol. 19 No. 6. https://doi.org/10.1108/EUM0000000002954