Cheap drugs at Wal-Mart worry small pharmacies
TUPELO -- Wal-Mart's new $4 generic drug program
has its benefits, but small drug store owners hope
their customers stay loyal.
"My stance on this -- we are just going to keep
on doing the things we do, taking care of customers
and patients, give them the best price, the best service
and do the things that independent pharmacists have
always been known for," said Jerry Morgan, owner
of Okolona Drug Co. "We think those things make
a difference for customers."
Wal-Mart's $4 generic drug program is in 27 states,
including Mississippi. It was first implemented in
Florida last month.
The $4 covers a month's supply for 143 drugs in a
variety of dosages and in liquid and solid forms.
The price-cutting program is now available at Wal-Mart
and Sam's Club stores in those states.
Jim Bain, owner of a Tupelo pharmacy that bears his
name, said he's been in business for 30 years, and
he doesn't expect Wal-Mart's sales tactic to affect
him.
"In my opinion, it's a marketing ploy to get
people in the store," he said. "But how
long will they do it?"
He acknowledged it's a good strategy but said his
business tries to care for individual customers who
come into his store.
"I am a small independent apothecary,"
he said. "I deal with people's medical needs.
... I told my employees when Walgreens and the two
Super Ds came to town, Take care of people when they
come through the door,' and we are still here."
James Randall, co-owner of Montgomery Drugs in Pontotoc,
said he hasn't heard a lot of people talking about
the generic drug program.
"I'm sure we could lose some customers,"
he said. "As for the long-term, I'm not sure.
We just hope our customers will remain loyal because
we try to do the best we can."
Bottom line
On the list of Wal-Mart's discounted drugs are medicines
and vitamins used to treat asthma, cholesterol, diabetes
and high blood pressure, among other things. It includes
14 of the top 20 prescribed drugs in the United States.
Consumers spent $53.2 billion on generic drugs last
year, according to the National Association of Chain
Drug Stores.
Wal-Mart's low-cost prescription drug program could
be just another blow for small drug stores. Bain said
the Medicare Part D program "is trying its best
to ruin community pharmacies."
"With the federal government, Medicare and insurance
companies, our profit potential is almost nil,"
he said. "Ninety percent of my business is from
third-party insurers, whether it's Medicare or company
insurance. Only 8 or 9 percent is cash. That's 90
percent I'll either take in or I won't."
Still, he said he feels 90 percent of his customers
will remain loyal, despite the lure from Wal-Mart.
"The $4 plan will help someone without insurance,"
he said. "People transfer their prescriptions
every day, for whatever reason. My customers, no one
has transferred because of the $4."
He said he anticipates the larger drug chain stores
soon will follow suit and lower costs on their prescription
medicines. So far, Walgreens, CVS and Publix say they
won't match Wal-Mart's $4 prices, and Kmart will stand
with a plan to sell 90-day supplies of certain generics
for $15.
Target, the nation's second-largest discount chain
store, is cutting prices on a state-by-state basis.
"My feeling is, independent pharmacies always
take care of the patients and we put the patients
first," Morgan said. "We do, in my opinion,
a great job of taking care of them, understanding
their needs and doing what is necessary to keep them
well and happy, at a fair price."
