Frugal shopping behaviors may set tone for future shoppers
CHANDLER, Ariz. —Shopper behaviors being shaped out of economic necessity today may be casting the mold for shopping behaviors tomorrow, noted Steve Johnson, EVP health care and personal care client solutions for Information Resources Inc., during a presentation at the National Association of Chain Drug Stores’ Regional Chain Conference here last month. “Without question, the shopper dilemma is deepening, and it’s projected to get worse before it gets better,” Johnson said.
Cash flow is the theme of the day, especially with consumers worried whether they’re going to be laid off, and credit still difficult to come by. “These concerns have a very strong trickle-down effect, heavily influencing the consumer decision-making process,” Johnson said.
That change in shopper behavior is cutting across all categories—especially health care. “As critical as health care is to long-term survival, consumers are…being forced to consider the possibility of eliminating spending on healthcare products in order to feed the family,” Johnson noted.
That’s not all bad news for drug stores, however. According to IRI research, 15% of consumers are treating themselves more frequently and going to the doctor’s office less, Johnson said. Already, 83% of consumers have reported that they are eating for nutrition, and 81% are relying on maintaining a healthy lifestyle in order to minimize medical expenses.
“[But] in these cases, we are seeing increased prevalence of self-treatment and shifts in [over-the-counter] medication behavior,” he added, such as consumers bringing home OTC medicines that relieve more than one symptom in an effort to reduce the amount of medicine they have to buy. “For instance, one-quarter of consumers are using less OTC medications today versus six months ago,” Johnson said.
“Shoppers are spending more and buying less,” Johnson said, noting that while inflationary pressures may be contributing to dollar growth, unit growth is still declining. In the past five years, the decline in the number of distinct [universal product codes] in the home pantry has dropped from 393 to 361—a 9% decline. IRI predicted the number of distinct SKUs will drop to below 350 in 2009.
One of the value propositions consumers are taking advantage of is private label. Sales of store brands have realized significant gains in the past year, and there’s nothing to suggest that those sales will be slowing down anytime soon. And that migration to store brands is prevalent even more among healthcare SKUs—OTC private-label sales outpaced the industry average and every other department in the retail store, Johnson said.
Other shopper strategies that may have some staying power in the coming year: greater use of coupons or only buying items on sale. With couponing and frugality becoming more common, consumers are less likely to make impulse purchases that deviate from the shopping lists they generated on their kitchen table. At the beginning of 2008, 60% of consumers drafted that shopping list from home. Today, more than 75% of consumers shop from that list.
“New strategies and tactics are required in order for manufacturers and retailers to now get on that ever-important shopping list,” Johnson said.
Obama may overturn Bush’s ‘conscience’ rules
NEW YORK The Obama Administration may overturn the Bush Administration’s “conscience” rules that allow healthcare workers to invoke religious beliefs to deny certain services such as birth control, according to published reports.
The Los Angeles Times reported that Barack Obama may roll back the provisions, which allow pharmacists to refuse to prescribe birth control pills on account of personal religious beliefs.
Seven states have also filed lawsuits to challenge the rule, the newspaper reported.
Clear up patient medication guidelines, independent pharmacy group urges FDA
ALEXANDRIA, Va. The National Community Pharmacists Association wants the government to give patients a clearer, more concise set of guidelines on how to take their medications, the effects those drugs have and the risks and benefits they carry.
The independent pharmacy organization yesterday urged the Food and Drug Administration’s Risk Communication Advisory Committee to push for a change in the current system of overlapping instructions that go to patients along with their prescriptions. In testimony before the committee, NCPA asked the agency to develop criteria for a guidance that would describe “a single, patient-friendly, written prescription information sheet to eventually replace the multiple written documents that patients can currently receive from their pharmacists with a particular prescription.
Under current practices, those documents can include Medication Guides, Patient Package Inserts [PPIs] and Consumer Medication Information [CMI]. Too often, said NCPA’s director of public policy, Tony Lee, patients discard the CMI and never read it — sometimes even throwing it away before they leave the pharmacy.
“While we recognize that the FDA has worked hard to try and improve these medication documents, the problem needs to be addressed in a fundamentally different way that combines useful written information with the personal relationships between the pharmacists and patients,” Lee told the FDA advisory panel.
“It is time for a comprehensive solution to this written prescription information issue,” added John Coster, NCPA’s senior VP of government affairs. “Any FDA effort to make CMI more useful for the patient should be accompanied by a broader assessment of the usefulness and purpose of the other information leaflets that pharmacist may be required to provide. We look forward to working with the agency and patient groups to meet this goal.”
Last summer, NCPA joined other pharmacy provider groups to file a “One Document” citizens’ petition with the FDA. The Risk Advisory Committee was convened specifically to address how to make CMI leaflets more useful for the patient, the group noted.
“These leaflets are voluntarily provided by the pharmacist, but the information contained in these leaflets often duplicates information in other written leaflets,” NCPA stated.