Walgreen Co.'s (WAG) same-store sales jumped 5.3% in September
on strength both in the pharmacy and the front end of the
store.
The 2% increase for non-pharmacy sales is in contrast to little,
if any, growth reported recently by Walgreen and its main rivals,
CVS Caremark Corp. (CVS) and Rite Aid Inc. (RAD). Such same-store
sales fell 1.4% in the latest quarter for Walgreen, it reported
Tuesday.
Pharmacy same-store sales climbed 7% in September despite a 2.3
percentage-point reduction from new generic drugs introduced the
past year. Prescriptions filled jumped 12%, nearly half the result
of increased dispensing of flu shots.
Total sales rose 10% to $5.35 billion in September, a month that
Walgreen opened 48 stores. The count is 7,045, the nation's highest
among drug-store operators.
The company has been struggling to bounce back from a recent
trend of retail weakness. Earlier this week, Walgreen posted a 1.6%
drop in fiscal fourth-quarter profit as sluggish front-end sales
offset growth in revenue and prescription sales. But cash flow from
operations surged 55% amid lower inventories, sparking a 10% jump
in Walgreen's stock Tuesday.
-By Mike Barris, Dow Jones Newswires; 212-416-2330;
mike.barris@dowjones.com