Check out the better-than-expected profit at Walgreen.

The largest U.S. drugstore chain saw shares rise 10 percent as its fourth-quarter profit benefited from a make-over that includes sprucing up stores and cutting jobs.

Walgreen also announced a new plan to promote 90-day prescriptions available at its stores as an alternative to the mail-order programs favored by many insurance programs.

While sales rose 7.6 percent to $15.7 billion, the company, with 7,042 U.S. stores, has continued to see weak demand for general merchandise.

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(Reuters photo)

Walgreen Co. said consumers’ bargain shopping hit profit in the latest quarter.  Still, Walgreen and other retailers might actually get a small benefit from the economic downturn and bank fallout. If banks ease up from opening ATMs on every corner, it could get easier for retailers to find attractive space for their stores.

The drugstore’s executives, in response to a question from UBS analyst Neil Currie during Monday’s conference call, said they’ve seen competition easing for good sites. They said banks started pulling back about six months ago and Walgreen now has more negotiating power when it’s looking for space. Still, it’s sticking with its plan to slow down its heavy dose of store openings. It added 561 stores to its lineup in fiscal 2008 and plans to add 495 new stores in fiscal 2009.

Walgreen also said it may add a loyalty card for its shoppers. So far, it has rounded up more than a million shoppers (the goal is several million) for the Walgreen Prescription Savings Club, which consumers pay a fee for in order to get cheaper drugs and a 10 percent reward on Walgreen-branded products.  President Greg Wasson said 25 to 30 percent of those using the card so far are new to its pharmacies.
 

(Due to a tabulation error in the research, STORES Magazine has issued a corrected list. This is being corrected to remove Coldwater Creek from the Top 10 list and replace it with Citi Trends at No. 10) 

Though the retail industry cooled last year to its slowest growth since 2002, a number of retail companies experienced fiery growth, according to the National Retail Federation. The hottest retailers, in general, grew through acquisitions, according to the trade group’s STORES Magazine.

NRF’s 2008 Hot 100 Retailers list, which will be included in STORES’ August issue, ranks the nation’s fastest-growing retailers that are publicly traded and have more than $100 million in annual sales.

Topping the list this year is CVS Caremark, which grew 2007 revenue by 74 percent because of its acquisition of Caremark. The No. 2 spot also went to a drugstore chain — Rite Aid, which purchased Brooks Pharmacy units in New England and Eckerd on the East Coast, saw revenue grow narly 40 percent. IHOP, which recently changed its name to DineEquity Inc, was No. 3 with last year’s purchase of Applebee’s.

WalMart, the world’s largest retailer, clocked in at No. 80, with 8.6 percent growth. Its mass market rival Target Corp, brought up the rear at No. 100, with 6.5 percent revenue growth.

Here is a list of the top 10 retailers, according to STORES Magazine: 

          1. CVS Caremark

          2. Rite Aid

          3. IHOP

          4. Amazon.com

          5. American Apparel

          6. GameStop

          7. BJ’s Restaurants

          8. Chipotle Mexican Grill

          9. FTD

          10. Citi Trends

     (Photo: Reuters)

Check out how generic drugs cut into June pharmacy sales at Rite Aid.

The No. 3 U.S. drugstore chain said its pharmacy same-store sales fell 0.5 percent, as generic drugs were introduced and allergy medicine Zyrtec was switched to over-the-counter status.

Generic drug rollouts hurt rival Walgreen as well. That company said a day earlier those drugs cut into its pharmacy same-store sales by 2.1 percentage points. 

Drugstores, in general, have been facing more competition from grocery stores and discounters like Wal-Mart, which have been offering discounts on a slew of prescription drugs.

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Adidas eyes 6,300 stores in China by 2010

Blockbuster may do Circuit City deal later (New York Post)

Circuit City faces tough road but Chapter 11 not near

(Photo: Reuters)

Check out the quarterly results at Walgreen, one of the largest U.S. drugstore operators.

The company posted a 2 percent increase in quarterly profit, amid a weak U.S. economy and slowing growth in sales of prescription drugs —  in the reported quarter, Zyrtec was switched to over-the-counter status.

And a slower-than-usual flu season — (good for you and me) – wasn’t so good for Walgreen. The company also pointed to the milder flu period for a slowdown in prescription drug sales volume in the quarter.

The company said it is on track to beat its goal of opening 550 new drugstores this year — and perhaps even come to the rescue of cash-strapped shoppers in the process.

“We’re adding neighborhood locations for today’s customer who is searching for value and struggling with high gas prices,” President Greg Wasson said in a statement on Monday.

As of May 31, the company operated 6,727 store locations in 49 states, but will be in all 50 states when it opens its first Alaska stores in 2009.

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Bunge to buy Corn Products for $4.4 billion

Costco plans Australia foray to challenge duopoly

Busch family member backs ’strong’ Anheuser Busch

Jones Apparel takes stake in Asian partner

(Photo: Reuters)

Check out the Easter boost in drugstore land.
 
Drugstore chains have been hurt by the weak U.S. economy of late, especially in the nonprescription part of the store.
 
But Easter seems to have helped at least one of the largest drugstore chains: Walgreen’s.
 
Walgreen Co said strong sales of Easter merchandise helped it post better-than-expected general merchandise sales in March. And they aren’t just talking about the fact that Easter came early this year, moving up purchases that would normally have occurred in April.
 
“The company recorded strong Easter seasonal sales, and front-end sales exceeded expectations for the month despite the slowing economy,” it said in a news release.
 
Of course, those front-end sales were needed to offset tepid prescription drug sales. The switch of allergy medicine Zyrtec to over-the-counter status, and a slower flu season for prescriptions hurt sales in that area as did an influx of lower-priced generic drugs in the past 12-months.
 
Still, for at least a month, it was chocolate bunnies to the rescue.
 
Also in the basket:
 
Best Buy profit better than expected
 
Lululemon’s sales double, to close Japan stores
 
Knit prices soar up to 20 percent for fall (WWD, subscription required)

(Reuters photo)