SOURCE: Kalorama Information

Kalorama Information

May 02, 2011 10:40 ET

Retail Clinics Most Successful in Drug Stores: Kalorama

NEW YORK, NY--(Marketwire - May 2, 2011) - Drug store locations have been the most successful thus far for retail clinics, according to independent healthcare market research firm Kalorama Information, despite rollouts of the concept in other locales. Kalorama estimates retail clinic sales at $733.4 million and says the majority of those sales are occurring at Walgreens, CVS or other drug store locations, according to its third round-up of the nascent industry, "Retail Clinics 2011: Market Assessment, Supplier Sales, Key Players and Trends."

Retail or convenience clinics, are designed to offer a low-cost and time-saving alternative to patients with routine health matters. According to Kalorama, of the 1,344 retail clinics open in 2010, 1084 were in drug stores, representing about 81% of the clinics. It is a trend that the publisher of market research has noticed since its first report on retail clinics in 2007.

"Clinics have worked in a variety of situations, but over the past few years we've seen more clinics open in drug store locations than in mass merchandise or food stores," said Bruce Carlson, publisher of Kalorama Information. "It's logical in terms of one stop-shopping, because the drug store visitor is already a consumer with healthcare on his or her mind."

The total number of clinics in the US is small, the concept has been under fire from physicians groups and some states, and the recession has complicated any new business starts. However, Kalorama found that the concept has staying power, especially where associated with a pharmacy. And while retail clinic failures have occurred in other locales, they've struggled less in drug stores. The report found that the major drug store-based clinics, Walgreen's Take Care Health and CVS's Minute Clinic, were responsible for 62% of retail clinic sales. According to Kalorama, management attention may be a factor.

"We still expect the concept to continue to be attempted in all locales, particularly by Walmart and other mass merchandisers," said Carlson. "But in these stores, the clinics are often third-parties and one of many attractions in the store, while in drugstores they are critical to the operation."

"Retail Clinics 2011: Market Assessment, Supplier Sales, Key Players and Trends" looks at retail clinics' impact and growth over the next five years. It estimates the indirect revenue that the clinics bring to retail outlets, and examines the market share of various companies and the potential revenues that suppliers may earn selling to retail clinics.

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