Sales of non-essential, non-prescription items such as beauty care products etc., at drug stores have fallen as foot traffic during the shutdown disappeared.
Sales of such items at CVS stores was down 4.5 percent in the second quarter, year-on-year. Walgreen’s reported sales at its non-U.S. locations slumped by 48 percent in the quarter ended 31 May.
New prescriptions, which can account for 25 percent of all prescriptions sold at a pharmacy store, also fell as people without jobs or in fear of losing theirs put off health care spending.
CVS Health’s share price has dropped more than 20 percent this year. Walgreen’s Boots Alliance, which owns the company’s British stores, has seen its stock lose 39 percent of its value since January.
The chains are hoping that offering flu shots as cold weather sets in, and offering COVID vaccinations when a vaccine is available, will revive customer traffic.
TREND FORECAST: We note this since it reflects the deep economic damage inflicted on consumers, manufactures, marketers, and the integrated supply chains since the launch of the COVID War.
The longer sales and profits decline, debt-heavy big chains will go bust and the consolidation of businesses will grow.
