Pharmacy sales boost major drugstores in June

AP News
Posted: Jul 03, 2014 11:28 AM

A jump in pharmacy revenue is fueling sales growth for two of the nation's largest drugstore chains, and they may start adding gains from the health care overhaul later this year.

Pharmacy revenue at established stores climbed more than 11 percent at Walgreen and 5 percent at Rite Aid last month. That counters slower growth from the retail areas of their stores.

The federal health care overhaul has expanded insurance coverage to millions of people, largely through an open enrollment period that wound down this spring. Analysts who cover drugstores say the potential wave of new business from the law has yet to reach drugstores, but that may change as the newly insured start using their coverage.

Walgreen Co. runs the nation's largest drugstore chain. Rite Aid Corp. ranks third.