DEERFIELD, Ill., December 02, 2008 - Walgreens (NYSE:WAG)(NASDAQ:WAG) had November sales of $4,961,800,000, an increase of 3.7 percent from $4,783,401,000 for the same month in 2007. Sales in comparable stores (those open at least a year) decreased 0.9 percent and comparable store front-end sales decreased 0.9 percent.
Black Friday and the following weekend saw stronger consumer traffic than a year ago, but fewer items were purchased per transaction. Transactions in comparable stores rose 1.7 percent in November.
November pharmacy sales increased 2.4 percent, while comparable pharmacy sales decreased 0.9 percent. Comparable pharmacy sales were negatively impacted by 2.3 percentage points due to generic drug introductions in the last 12 months.
Calendar day shifts had a negative impact on the month, as pharmacy patients fill more prescriptions during the week than on weekends. This year, November had two fewer weekdays compared to November 2007. Calendar shifts, along with one less holiday shopping week in November this year, negatively impacted total comparable store sales by 2.5 percentage points, front-end sales by 0.8 percentage points, comparable pharmacy sales by 3.4 percentage points and prescriptions filled in comparable stores by 3.3 percentage points.
Total prescriptions filled at comparable stores decreased 3.4 percent in November, negatively impacted by 0.6 percentage points due to the switch of Zyrtec from prescription to over-the-counter status. Pharmacy sales accounted for 64.4 percent of total sales for the month.
November front-end sales were helped in part by strong sales of basic necessities, consumables and key beauty items. Also, Zyrtec’s switch to over-the-counter status benefited front-end sales by 0.4 percentage points.
“Consumers continued to shop our stores for the essentials throughout the holiday weekend,” said Walgreens President and COO Greg Wasson. “As we approach the last-minute Christmas rush, shoppers will take even greater advantage of our wide selection of products and convenient locations.”
Calendar year-to-date sales were $54,469,062,000 an increase of 9.0 percent from $49,950,830,000 in 2007.
Fiscal 2009 year-to-date sales were $14,975,491,000 up 6.8 percent from $14,027,883,000. Comparable store sales for the fiscal year to date increased 1.8 percent. Walgreens opened 94 stores during November, including 15 relocations, and acquired eight stores.
At Nov. 30, Walgreens operated 7,123 locations in 49 states, the District of Columbia, Puerto Rico and Guam. That includes 6,630 drugstores, 491 more than a year ago. The company also operates worksite health centers, home care facilities and specialty, institutional and mail service pharmacies. Its Take Care Health Systems subsidiary manages 293 convenient care clinics at Walgreens drugstores. Franchisees of Option Care, Inc., a wholly-owned subsidiary of Walgreens, are not included in Walgreens location or store count.
Please note: Monthly sales numbers are preliminary and unaudited. Comparable stores are defined as those drugstore locations open for at least 12 consecutive months without closure for seven or more consecutive days and without a major remodel or a natural disaster in the past 12 months. Relocated and acquired stores are not included as comparable stores for the first 12 months after the relocation or acquisition.
