Key Walgreen Metric Climbs 3.2 Percent In November
Walgreen Co. says revenue from its established stores rose 3.2 percent last month compared to November 2012, when a wave of generic drugs hurt the top-line of the nation's largest drugstore chain.
The Deerfield, Ill., company says pharmacy sales climbed 4 percent, while revenue from the rest of its stores rose nearly 2 percent, thanks in part to more promotions.
Revenue from stores open at least a year is a key indicator of retailer health because it leaves out potentially distorting results from locations that have opened or closed.
Generic drugs can hurt pharmacy revenue because they cost less than their brand-name counterparts. But they also boost profitability because they come with a wider margin between the cost for the pharmacy to purchase the drugs and the reimbursement it receives.