Drugstores Expand Further into Wellness

It’s taken a pandemic for legislators to see the important role that drugstores play in the US healthcare system. When vaccines became available to slow the spread of covid-19, pharmacies were at the forefront of the battle.

According to the National Association of Chain Drugstores (NACDS), drugstores administered 260 million vaccine doses—two-thirds of all shots in the US. Moreover, 90% of Americans live within five miles of a drugstore, according to NACDS. Now, drugstore owners and their Association want more of the health and wellness pie.

“The pharmacist is the health and wellness expert,” explained NACDS President and CEO Steve Anderson. “Our industry’s response during the pandemic showed what we can do. Health and wellness are front and center following the pandemic. How do we reflect that?”

Anderson addressed attendees at the Total Store Expo in August. The event drew hundreds of exhibitors who showcased their latest products and services to drugstore retailers.

In 2023, the NACDS celebrates its 90th anniversary. It represents more than 70 chain member companies and nearly 800 supplier partners. While acknowledging its past, NACDS is focused on the future; and specifically, on several issues:

• Expanding pharmacy care services;
• Expanding health and wellness solutions—throughout the pharmacy and the total store; and
• Defending pharmacies from unfair reimbursement—and defending patient care.

“NACDS has been at this a long time—advancing pharmacies as the face of neighborhood healthcare,” explained Anderson. “The pandemic confirmed our case, and re-doubled our resolve. These issues are accelerating now because people know that retailers and suppliers were there when it mattered most—with accessible and equitable care.”

Momentum is on the side of NACDS. Prior to the emergence of the H1N1 virus in 2009, pharmacists couldn’t give flu shots in all 50 states. Since then, NACDS has further advanced pharmacy scope of practice. In 2019, before covid, progress already was strong. That year, 26 states expanded authorities for pharmacists and roles for pharmacy technicians. In 2020 and 2021, 90 state measures enhanced pharmacy scope of practice.

To keep that momentum going, the Association is working to extend the federal flexibilities under the Public Readiness and Emergency Preparedness Act. These flexibilities empower pharmacy services for covid-19 and for other illnesses, according to NACDS.

“We need to create a reliable federal reimbursement mechanism for these services. The American people expect this,” Anderson added.

In a Morning Consult poll commissioned by NACDS, 70% of adults support extending these policies, and 68% of adults want to make them permanent. 

In 2011, the Association announced plans to create NACDS Total Store Expo, which debuted in 2013. It merged three events into one to create this “total store” focus. According to Anderson, it brought more cohesion to health and wellness, and better reflected where the industry is doing for the American people. Since then, as part of the NACDS strategic planning process, the Association has explored ways it provides services given changes in healthcare delivery.

NACDS 2023

All of this has helped position NACDS extremely well for acceleration in this area—and consumers demand it. According to Anderson, a July 2022 JD Power survey found consumers are embracing retail pharmacies as hubs for broad health and wellness services. According to Anderson, these consumer attitudes present an opportunity for retail pharmacies to innovate as a one-stop shop for routine care.

This shows the timeliness of a new initiative: NACDS 2023. This initiative will answer the question: how does NACDS best support the work of retailers and suppliers to meet Americans’ comprehensive health and wellness needs?

“Yes, all of this is accelerating as a result of the pandemic. We’ve long known that seniors love pharmacies. The trust is extraordinary,” observed Anderson. “Yet today, young people and families are looking at pharmacies in new and exciting ways, too. They love the vaccination experience in pharmacies. They’re looking for more health and wellness offerings.”

Expanded Services

NACDS Chairman Brian Nightengale, president, Good Neighbor Pharmacy, said the NACDS is committed to transform the pharmacy industry into a force greater than the sum of its parts.

“We constitute the most accessible, most trusted, and most affordable healthcare destination in America,” he said. “As such, we seek an expanded role within our country’s health and wellness ecosystem.”

Nightengale urged TSE attendees to support HR 7213, The Equitable Community Access to Pharmacist Services Act. The legislation would establish a reliable billing mechanism under Medicare Part B for pharmacist-provided vaccinations, testing and treatment for covid-19 and other illnesses. NACDS is a member of the Future of Pharmacy Care Coalition, which is advocating strongly for the bill.

Who’s Buying What?

NACDS’ efforts come at a time when wellness is top-of-mind with US consumers. Wendy Liebmann, founder and CEO, WSL Strategic Retail, conducts research on how consumers shop, their spending universe, their arc of spend and, perhaps most importantly, what’s next.

“Shoppers will lead you to the future…if you follow them,” she told attendees at TSE. “Post-covid, they want their lives back. But their lives will be different.”

So is the shopper demographic. According to Liebmann, today’s shoppers are:

• Younger (46% under age 40, that’s up 18 points v. 2014);
• Cautious (49% are more cautious about their spending);
• Everywhere (use 11.9 distribution channels, up 37% from 2014);
• Stressed (41% suffer from depression or anxiety, up 11 points v. 2018); and
• Revolutionary (71% expect fair treatment of all workers).

In her research, Liebmann found rising prices are already having an impact on consumer purchases. Aside from being more cautious about how they spend, 37% are cutting spending to pay for basics. Just 14% said there’s been no impact from rising prices.

Where are the spending cuts? Well, 46% are eating out less. But 34% are cutting spending on cosmetics, 20% are reducing spending on facial skin care, and 14% are spending less money on household cleaners, hair care, OTC medications and supplements.

Still, Liebmann is optimistic.

“There is a tension and duality in the shoppers’ world now that reveals tremendous opportunities and white spaces…if you know where to look,” said Liebmann.

For example, 22% said they are spending more on self-care—a category that skews to a younger shopper. At the same time, home delivery and pickup services are on the rise, especially among younger shoppers. According to Liebmann, 75% of respondents have ordered online for home delivery tomorrow or later, 65% have used in-store pickup and 64% have ordered online for same-day home delivery. Even 53% have used a service such as Instacart.

Ironically, pickup also drives shoppers into stores. According to WSL research, 63% go into the store after pickup. Why? 35% said they forgot something and 28% said “to browse.” The data underscores the fact that 47% of respondents are spontaneous shoppers who will buy anything they need wherever they are.

“Retailers must figure out how to reach these new shoppers. They must figure out what’s an ‘essential’ category and what’s a ‘browser category,’” observed Liebmann. “Brands aren’t the focus anymore. The journey has become so fragmented. It is a complicated ecosystem.”

The Stressed Shopper

Complicated and stressful. As Liebmann noted, depression/anxiety is the No. 1 condition managed by consumers, especially Generation Z shoppers. In fact, 59% of GenZ respondents said they were depressed and anxious—up 14 points from 2018.

“Stress remains the No. 1 obstacle to a healthy life,” observed Liebmann. “Sleep is a close No. 2.”

Consumers are taking a holistic approach in an attempt to improve their health. Efforts include:

• Drink a lot of water (57%);
• Be financially responsible (55%);
• Take vitamins every day (53%);
• Look healthy (50%);
• Relaxation and mental wellbeing (43%);
• Telehealth for physical (33%); and
• Alternative treatments (26%, but 38% for Millennials).

Nutrition plays a big role in consumers’ wellness strategy. Nearly a third are eating protein and fiber bars and 31% are drinking vitamin/electrolyte water.

Surprisingly, saving time is considered healthy too. Nearly 60% of respondents said they get their basic shopping done faster so they have more time for other things. Before they go shopping, 38% ask themselves “is this a smart use of my time?”

But shoppers can’t always afford to make the right purchasing decisions. Forty-three percent said it costs more to live healthy, but it’s worth it. And 25% said they cannot afford to pay for things that will keep them healthy.

Adding to the complexity is the fact that wellness has many new dimensions like fair trade, sustainability and equality.

“Consumers want to purchase from purpose-driven companies that care for their people and the community,” stressed Liebmann.

Winning Ideas

Some retailers do a better job than others when it comes to meeting these new needs, Liebmann noted. For example, sporting goods retailer Dick’s Sporting Goods has a health and wellness department. Galleries Lafayette opened its Wellness Galerie in July. The 32,000 square-foot department includes treatments, products, restaurant and gym. Elsewhere, Aldi Australia’s Corner Store format is half the size of a standard 1,200 square-foot store. The smaller size makes it more convenient for shoppers to grab and go, and get on with their days.

Two years ago, at the height of the pandemic, VS Pink launched Pink With A Purpose, a new platform featuring mental health and self-care tips. Selfridges urges the shopper to discover her “superself” via plant-based diets, CBD and a mood-boosting window. Brands like Womaness are turning traditional health care issues upside down with products such as Me. No. Pause., a supplement said to reduce hot flashes and night sweats, while improving memory, focus and sex drive. One of the best examples of a retailer embracing the wellness movement is Lululemon. Along with athletic wear, stores offer yoga classes and nutrition advice.

“It’s not just about your category, shoppers are everywhere,” insisted Liebmann. “Wellness is the foundation of everything. You must understand, it goes beyond products.”

As consumers’ stress levels rise, she urged retailers and brand owners to stay human. Liebmann noted that during covid, drug stores and food stores remained open and were the only human contact for many shoppers. She called on retailers and brand owners to keep shoppers front and center in all future planning.

“The wellness space is getting hard to shop. Let’s not make a mess of the bloody aisle,” she insisted.