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I N S I D E Can Target still hit the bullseye of beauty discovery?

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FIVE RETAIL PHARMACY TRENDS

FOR 2024

As retailers brace for 2024, check out the burning issues taking center stage in the year ahead

Demand less. Expect more.

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FEATURES EXPANDED BEAUTY CONTENT! 30

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20 FIVE RETAIL PHARMACY TRENDS FOR 2024 As retailers brace for 2024, check out the burning issues taking center stage in the year ahead

DEPARTMENTS

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EDITOR’S NOTE

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INDUSTRY NEWS

GUEST COLUMN

By Tim L’Hommedieu and Nio Queiro

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PRODUCTS TO WATCH

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LAST WORD

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PHARMACY: TECH & AUTOMATION

The ROI of Rx Technology

Automated solutions give pharmacists more time to focus on higher-profit patient services 54

HEALTH: OTC COUGH & COLD

A Category in Chaos

The future of phenylephrine, a widely used OTC decongestant, is up in the air 60

REX AWARDS: NATURAL PRODUCTS

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DSN (ISSN 0191-7587) is published monthly 12 times a year by EnsembleIQ, 8550 W. Bryn Mawr Ave, Suite 200, Chicago, IL 60631. Subscription rate in the United States: $150 one year; $276 two year; $17 single issue copy; Canada and Mexico: $204 one year; $390 two year; $20.40 single issue copy; Foreign: $204 one year; $390 two year; $20.40 single issue copy. Periodicals postage paid at Chicago, IL, and additional mailing offices. POSTMASTER: Please send address changes to DSN, 8550 W. Bryn Mawr Ave, Suite 200, Chicago, IL 60631. Vol. 46 No 1, January 2024. Copyright © 2024 by EnsembleIQ. All rights reserved.

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EDITOR’S NOTE

Future Tense

Coming off an active 2023, what can retail health expect in 2024?

PBM REFORM IS MOVING THROUGH CONGRESS WITH BIPARTISAN SUPPORT, RETAIL DRUG STORES WILL CONTINUE THEIR EXPANSION TO BECOME HEALTHCARE DESTINATIONS, AND IT’S LOOKING MORE AND MORE LIKELY THAT THE FEDERAL RESERVE MAY PULL OFF THE MUCH BALLYHOOED ECONOMIC SOFT LANDING.

The year 2023 is in the books, and boy what a busy year it was.

Some obvious stories that stood out included Rite Aid filing for bankruptcy, Rosalind Brewer’s departure from Walgreens Boots Alliance, retailers having to cut pharmacy operation hours due to a nationwide pharmacist shortage, CVS shuttering its clinical trial business after three years and CVS Health acquiring Oak Street Health for $10.6B There was some beauty news as well. Revlon emerged from bankruptcy with a new board that is helmed by former Sephora and Walgreens Boots Alliance executives, and Kim Kardashian and Kylie Jenner considering buying back stake in businesses they sold to Coty.

This is just the tip of the iceberg of all the things that happened last year, and it’s hard to tell what (if anything) these developments mean for retail health, beauty and wellness at large. But this month, we take a look at some developments that are likely to affect 2024.

Starting on page 20, our reporter asked retail executives, industry watchers and business consultants to paint a picture of what the year may look like. The conclusion? 2024 promises to be a tumultuous year. Issues such as labor challenges, store closures and economic anticipation about the R-word (recession) will create a volatile climate.

There are some potential bright spots, though. PBM reform is moving through Congress with bipartisan support, retail drug stores will continue their expansion to become healthcare destinations, and it’s looking more and more likely that the Federal Reserve may pull off the much ballyhooed economic soft landing.

“On the bright side, some analysts see economic pressures easing, and the industry is also hopeful about legislation that could bring more transparency to prescription drug pricing,” our reporter writes. So at least there’s that.

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EDITORIAL ADVISORY BOARD

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INDUSTRY NEWS

BJ’s Wholesale Club to open latest Ohio, Tennessee locations BJ’s Wholesale Club is in expansion mode. The big box retailer opened its newest Ohio club location and its newest Tennessee club on Friday, Dec. 15, 2023.

The new Ohio club is located at 8425 Orange Centre Drive in Lewis Center.

Members can find a BJ’s Gas location on-site and the opportunity to earn extra savings through BJ’s Fuel Saver Program.

“BJ’s is committed to saving families time and money, and this is particularly important during the holidays,” said Parker Dayton, club manager of Lewis Center BJ’s Wholesale Club. “We are thrilled to open our doors to the

Dollar General makes leadership appointments Dollar General has made four executive appointments. Jeff Mooney has rejoined the company as senior vice president, store operations. In this role, Mooney will oversee retail operations for more than 8,100 stores in Dollar General’s southern geographical divisions.

Jeff Rudy has joined DG as senior vice president, transportation. In this role he will oversee all aspects of the company’s transportation function inclusive of international and domestic inbound, and responsibility for all outbound transportation including DG Private Fleet’s more than 1,800 drivers.

10 January 2024 DRUGSTORENEWS.COM

community of Lewis Center and offer our incredible value, all in a one-stop shop.”

At BJ’s Wholesale Club, members can choose from a variety of shopping options like in-club shopping, curbside pickup, in-club pickup, same-day delivery and standard delivery from BJs.com. When shopping in-club, members will have access to ExpressPay through the BJ’s mobile app, a service that allows shoppers to scan products as they go and avoid the checkout line at the end of each trip.

BJ’s new Tennessee club is in Mt. Juliet.

The club, located at 181 Adams Lane, is BJ’s second location in Tennessee, following the successful La Vergne club opening earlier this year. Mt. Juliet is BJ’s 240th club.

Mt. Juliet members will delight in BJ’s newest assortment of both toys and apparel, delivering top brands at unbeatable prices.

BJ’s Wholesale Club, an active participant in its local communities, is partnering with Second Harvest Food Bank of Middle Tennessee, donating nutritious, fresh foods to help local families.

BJ’s Charitable Foundation also is supporting Wilson County School District’s weekend food backpack program to help meet the expanded needs of students and their families each week, with a $15,000 donation.

BJ’s Charitable Foundation has supported classroom projects in 14 Middle Tennessee schools, providing teachers and students the resources they need to succeed.

Scott Kear has rejoined Dollar General as divisional vice president. He will lead store operations including sales, talent strategies and performance optimizations with leadership over 10 regions.

Macedonio Garza has joined Dollar General as managing director, Mexico. Garza will plan and lead Mi Súper Dollar General business operations including store operations, merchandising, supply chain and Store Support Center functions, providing overall direction for driving business growth and amplifying the brand among consumers in Mexico.

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INDUSTRY NEWS

Meijer to open Fairfax Market in Cleveland Residents of Cleveland’s Fairfax neighborhood and surrounding areas will soon have more convenient access to fresh food at low prices, the retailer said.

Fairfax Market, the new neighborhood market by Meijer on 2190 E. 105th St., opens on Jan. 16.

The new 40,000-sq.-ft. market is part of a mixed-use neighborhood revitalization project being developed in partnership with the City of Cleveland, Cleveland Clinic, the Fairfax Renaissance Development Corporation and Fairmount Properties. Located in the Cleveland Innovation District, Fairfax Market will contribute to creating a healthier community by addressing food insecurity, supporting economic development and providing a new grocery shopping destination for customers from Fairfax and other nearby neighborhoods, as well as those who work in the neighborhood.

Fairfax Market will feature a large assortment of products, including fresh meat and deli items, fresh produce, a bakery and Meijer and national brand items. It also will carry more than 2,000 local products, including Cleveland Cold Brew Coffee, Micah’s Supreme Sauce, PUR Spices, Akron Honey, Lemon Waves and beauty care products from Catlin Naturals. Additionally, the market will feature: • A floral and gift shop, featuring PaperCutz Vintage greeting cards and posters with paper flowers from Love, Anji • An assortment of local beers and wines • Health and beauty care products from local and Black, women-owned businesses from the Fairfax neighborhood and Cleveland • A 104-ft. international section, featuring products from around the globe alongside vendors from Cleveland • A 54-seat cafe space, featuring coffee and sandwiches from Saucy Coffee and sushi from Hissho Sushi The store will employ approximately 50 team members who will earn competitive wages and have access to health and free education benefits and a 401(k) program with a company match.

The effort to bring a grocery market to the Fairfax neighborhood began with a community conversation among Cleveland Clinic CEO and president Tom Mihaljevic, Cleveland City Council President and Ward 6 Councilman Blaine Griffin, and Fairfax residents. Meijer, a Midwest-based, family-owned, regional retailer previously opened four smaller stores to serve neighborhoods in Grand Rapids, Lansing, Royal Oak and Detroit, Mich. Meijer became the grocer partner of choice for the project after neighborhood leaders visited one of its smallformat stores and saw the positive impact it was having on its community.

Fairfax Market is the retailer’s first small-format neighborhood market outside of Michigan. The store’s regular hours will be 6 a.m. to 10 p.m. daily.

12 January 2024 DRUGSTORENEWS.COM

Hy-Vee joins Iowa Total Care to provide shopping rewards for health incentives Iowa Total Care, a provider of Medicaid healthcare coverage in Iowa and a wholly owned subsidiary of Centene, announced that Hy-Vee has joined the My Health Pays network.

Beginning Dec. 1, 2023, Iowa Total Care members can spend their My Health Pays rewards at all Hy-Vee, Dollar Fresh Market and Hy-Vee Fast & Fresh stores in Iowa (in-store only).

In 2022, Iowa Total Care members earned over $5.1 million in My Health Pays rewards for participating in healthy activities, including annual health risk screenings, infant, early child and adult well-care visits, flu shots and more.

“Partnering with an Iowabased company like Hy-Vee is extra special,” said Mitch Wasden, president and CEO of Iowa Total Care Plan. “Encouraging members to earn rewards for healthy behaviors and promoting preventative care is the goal, and we hope the extra incentives while shopping at their local Hy-Vee will serve as an exciting added benefit.”

Over the past several years, Iowa Total Care and Hy-Vee have partnered through the “Eating Healthy with Iowa Total Care” virtual cooking classes. New in 2023, the partnership was expanded to include four statewide Green to Go community health fairs that will grow to eight community health fairs in 2024. Since January 2023, Hy-Vee also worked alongside Iowa Total Care to distribute 42,540 pieces of fresh, free produce to more than 2,000 Iowans facing food insecurity.

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INDUSTRY NEWS

Online grocery sales dip Online grocery sales saw a notable year-over-year dip during the third quarter, according to the latest data from Brick Meets Click.

For the 12-week period ended Sept. 20, online sales across 25 U.S. grocery banners dropped 13.5%, with total order volume on a same-store basis down 16.8% compared to a year ago. Of the 25 grocers in the eGrocery Performance Benchmarking analysis, only three posted an increase in samestore online sales YoY, which Brick Meets Click cites as evidence of the challenging retail environment.

“These eGrocery benchmarks are extremely valuable to regional grocers

who want to better understand how their banners’ performance and key performance indicators compare,” said David Bishop, partner at Brick Meets Click. “This study not only helps grocers identify opportunities to improve, but also reveals the stark realities related to growing an online grocery business in a postCOVID environment where customers have greater access to and higher expectations for eGrocery shopping.”

The decrease in order volume was the result of a shrinking base of active customers overall, Brick Meets Click said. The number of customers who completed one or more online grocery orders in the third quarter of 2023 declined by 19.8% versus the same period in 2022. A comparison of retention rates for different customer cohorts in 2022 versus 2023 highlights that it is now more challenging for regional grocers to keep their online

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customers active.

In the quarter, the YoY drop in overall order volume was partially offset by the base of active customers completing more orders and spending more per order. These metrics grew 7.6% and 4.2% respectively in 2023 versus the prior year.

Per Brick Meets Click’s most recent monthly online grocery sales report, online grocery sales were $8.2 billion in October, an increase of 5.0% YoY. The figures followed September sales of $7.5 billion, which was a decrease both compared to August of this year and September 2022.

In 2023, the eGrocery study analyzed 25 banners, representing sales across 1,224 physical stores in the U.S., who operate a first-party online grocery website and/or app.

This story originally appeared in Chain Store Age, DSN’s sister publication.

Safeway, MrBeast donate more than $450K to local nonprofits Safeway, a banner operated by Albertsons Companies, has partnered with philanthropist and digital creator MrBeast, AKA Jimmy Donaldson, on the latest challenge to hit the YouTube channel.

Available to watch now, the “Survive in a Grocery Store” video shows MrBeast challenging a contestant to see how many days he can live inside a Safeway grocery store. Every day the man remains in the store, he wins $10,000 but there’s a catch. He must choose $10,000 worth of products to donate to local charities each day as well.

“Safeway has a longstanding history of giving back to the community, so when we learned of this incredibly fun and unique opportunity to partner with MrBeast and help our neighbors in need, we were thrilled,” said Jennifer Saenz, executive vice president and chief merchandising officer at Albertsons. “Our collaboration with MrBeast furthers our mission to break the cycle of hunger as part of our Recipe for Change environmental, social and governance framework.”

MrBeast and brand sponsors donated more than $450,000 worth of groceries, electronics and paper goods to local nonprofit organizations including Feeding America, Kinston Teens and The Salvation Army Greenville.

Safeway partnered with Copia, a technology company that connects food donations to local not-for-profits in need, to identify and manage donation opportunities from the store to local nonprofit organizations.

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DRUGSTORENEWS.COM January 2024

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GUEST COLUMN

Healthcare Access in Rural America

The escalating healthcare crisis in the United States, especially in rural regions, underscores the urgent need for systemic reform and innovative solutions

By Tim L’Hommedieu and Nio Queiro

Timothy R. L’Hommedieu, Pharm.D., MS, is senior vice president of pharmacy for Atlas Health. Nio Quiero is chief executive officer of The Queiro Group.

Across the United States, a growing healthcare crisis is looming, especially pronounced in rural areas where patients face significant disparities in accessing timely, affordable medical services.

The core of the issue stems from a lack of readily available resources, ranging from hospitals properly equipped to provide advanced care to well-stocked pharmacies. This problem became so pressing it gained attention of the Biden-Harris administration, leading to its inclusion in their Investing in America Initiative.

According to the Center for Healthcare Quality and Payment Reform, the statistics paint a grim picture. More than 30% of rural hospitals are dangling on the precipice of closure, a situation that is projected to deteriorate in the coming years. This isn’t merely a projection. Hard data from the Government Accountability Office reveals a distressing trend: from 2013 through 2020, more than 100 rural hospitals shut their doors. Consequently, patients found themselves navigating an additional 20 to 40 miles on average to access advanced treatment.

Beyond the closures, another significant challenge emerges: the surge in Medicare Advantage enrollments, which leads to paltry reimbursements for rural hospitals. These health systems—often already underfunded—are ill-equipped to negotiate better contracts. Considering that nearly a fifth of the U.S. population calls rural areas home, the ramifications of this are profound. Many patients are finding themselves burdened with extra expenses, from taking unpaid leave to commute to medical facilities to handling accommodation costs for prolonged treatments. But amidst this bleak landscape, there are

16 January 2024 DRUGSTORENEWS.COM

ways to provide access and affordability to rural areas.

Surprisingly, more than 20,000 philanthropic aid programs exist, collectively amassing an astounding $30 billion in financial aid annually. Yet, a significant hurdle remains: efficiently connecting patients to this philanthropic aid. However, this is where technology comes into play. It can revolutionize the process through AI-driven technology to effortlessly match patients with the best-suited philanthropic aid programs tailored to their unique situations. This removes the historically tedious, manual matching and re-enrollment process.

Hard data from the Government Accountability Office reveals a distressing trend: from 2013 through 2020, more than 100 rural hospitals shut their doors.

Consequently, patients found themselves navigating an additional 20 to 40 miles on average to access advanced treatment.

The escalating healthcare crisis in the United States underscores the urgent need for systemic reform and innovative solutions. With over a third of rural hospitals on the brink of closure and hundreds already closed, countless individuals are subjected to mounting challenges in securing affordable, quality healthcare.

But there’s a beacon of hope as more than $30 billion in philanthropic aid lies mostly untapped, waiting to bridge the healthcare chasm. Leveraging AI-driven technology to seamlessly connect patients with these aids can revolutionize rural healthcare access and affordability. As we look forward, a blend of policy reform and tech-driven philanthropy might just be the panacea for America’s rural healthcare woes. dsn

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P R O D U CTS TO WATCH

New & Noteworthy HRG’s five notable products from December

Product introductions ended the year on a high note in 2023, seeing a modest increase in December after two straight months of declines. Introductions hadn’t seen an increase since September.

For the month of December, suppliers introduced 78 new products, which is four fewer items than the 74 they released in the previous month. Waukesha, Wis.-based HRG reviewed 13 products in the health category, 38 items in the wellness sector and 27 items in the beauty aisle to see which ones stood out as Products to Watch.

Here are the ones to watch:

1. Zarbee’s Children’s Gentle Bedtime Chamomile Gummy Zarbee’s Children’s Gentle Bedtime Gummies are a nonmelatonin, drug-free supplement designed to help children unwind and relax before bedtime, the brand said. It contains chamomile, which is believed to promote mind and body relaxation. Zarbee’s claimed that when kids three to 12 years of age take a serving 30-60 minutes before bed, sleep hygiene will improve. The product is available in a Raspberry Lemon flavor and in a 30-ct. pack.

2. Bactine Max No-Mess Roll-On Wellspring said it launched the new Bactine Max No-Mess Roll-On as an anesthetic liquid that is designed to numb pain and itch quickly. It was developed to ease pain associated with minor burns, bug bites and sunburn. The roll-on contains lidocaine and aloe vera and comes in a 2.5-oz. bottle.

18 January 2024 DRUGSTORENEWS.COM

3. Gold Bond Healing Sensitive Body & Face Lotion Gold Bond Healing Sensitive Body & Face Lotion by Sanofi contains seven moisturizers and three vitamins to help restore skin’. Sanofi said the product is clinically shown to heal, moisturize and soothe dry, sensitive skin while also being hypoallergenic and fragrance-free. It comes in a 13-oz. bottle.

4. Coppertone Every Tone Invisible Finish Face Sunscreen Lotion SPF 55 Beiersdorf is expanding its Every Tone line with the addition of Coppertone Every Tone Invisible Finish Face Sunscreen Lotion SPF 55. The sunscreen is designed to be transparent on skin, non-greasy and lightweight. It will appear clear on all skin tones, Beiersdorf said, adding that it is water resistant for up to 40 minutes. Developed with dermatologists from Skin of Color Society, the product is free from oxybenzone, octinoxate, PABA, parabens and phthalates. It comes in a 2-oz. tube.

5. Neutrogena Reusable Gentle Foaming Facial Cleanser Kit The Neutrogena Foaming Facial Cleanser Starter Kit from Kenvue comes with a reusable pump bottle and face wash concentrate that provides users with a sustainable packaging option and 96% biodegradable formula to clean the skin. The concentrate is formulated with seven ingredients, is non-comedogenic and is free from parabens, phthalates, sulfate-surfactants, alcohol, mineral oil and soap. One cleanser comes in a kit. dsn

COVER STORY: 2024 RETAIL DRUG OUTLOOK

Five Retail Pharmacy

Trends for 2024 Labor challenges, the expansion of healthcare services, store-count rationalization and PBM reform are among the front-burner issues in the year ahead

BY MARK HAMSTRA

2024 promises to be a tumultuous year for pharmacy retailers, as labor challenges persist and traditional drug store operators continue to shutter store locations and rethink their suite of offerings. On the bright side, some analysts see economic pressures easing, and the industry is also hopeful about legislation that could bring more transparency to prescription drug pricing.

Here are the five biggest trends to watch in the year ahead:

1.

Decelerating economic growth could pose challenges

It appears likely that the U.S. economy will avoid a recession again in 2024, although drug store operators will continue to face challenges from competitors and from evolving consumer shopping preferences, according to analysts.

“Despite 18 months of listening to experts say we’re going to have a recession, I still don’t believe we’re going have a recession,” said Dave Marcotte, senior vice president, cross-industry/ cross-border and technology, Kantar Consulting. “You can’t have 3.5% unemployment and get a recession.

It just doesn’t work that way.”

He also said he believes consumer concerns about inflation and the economy could ease in 2024. As prices on many consumer goods continue to fall, it will have a positive impact on consumer confidence and spending, he said.

20 January 2024 DRUGSTORENEWS.COM

“Right now, 2024 is not looking like it’s going to be problematic,” he said.

Drug stores, however, are still recovering from the impacts of the pandemic, when consumer visits slowed dramatically and shopping patterns shifted toward e-commerce. In addition, the high inflation rates of the past few years have driven many shoppers to lower-priced alternative retail formats.

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COVER STORY: 2024 RETAIL DRUG OUTLOOK

“It’s going to take us 10 years to get past the pandemic,” said Marcotte, noting that consumers appear to be making fewer of the convenience shopping trips that retail drug stores depend on.

“When drug stores are competing head to head with other channels, their need for a higher margin in the front end doesn’t work well when people start doing comparison shopping,” said Marcotte.

Research firm Morningstar is also not predicting a recession in 2024, but rather a deceleration in growth in both the economy and consumer consumption, said Julie Utterback, senior equity analyst, healthcare, Morningstar Research Services. Utterback agreed that front-of-store categories could be under pressure in 2024.

“A decelerating economy would hit front-of-the-store sales the most,” she said. “However, the back-of-store pharmacy operations tend to be more recession-resistant and a bigger part of the pie for the retail operations of CVS and Walgreens, which gives the retail pharmacies a bit of a cushion relative to other more economically-dependent retail stores, typically.”

Avoiding a recession in 2024 could also have a positive impact on retailers’ access to capital and financing. Depending how certain economic indicators— such as unemployment and inflation—trend in the coming months, interest rates could start to decline at some point during the year, according to some

observers. This could mean more favorable rates for borrowing, especially for small businesses such as independent retailers.

2.

Pharmacy labor pressures persist

An economic environment in which employment gains slow down could benefit drug stores by helping them add more staff in stores where more labor is needed, analysts said.

“Overall, a more favorable labor market could lead to less pressure on wages than we have seen post-pandemic, such as when CVS raised its minimum wage to $15 per hour in 2022-2023,” said Utterback.

However, she noted, the recent pharmacy labor strife at CVS and Walgreens has been less about wage increases and more about reducing the burden on back-of-store workers, she pointed out. This suggests that retail pharmacies may need to hire more employees to keep their workforce happy, she said, noting that doing so could also impede retailers’ profit growth.

Store closures among the big drug chains could be freeing up some labor and helping reduce staffing shortfalls at nearby locations, said Marcotte. However, the healthcare industry overall has been under increasing pressure from labor shortages, and that could continue to impact the retail pharmacy talent pool, he said.

“That massive healthcare worker shortage started originally in hospitals and clinics, but you started seeing this [impacting] chain drug to the point where they started having to close stores or cut back hours because there simply wasn’t enough labor, and that just has not really changed,” he said.

Both Walgreens and CVS have invested significantly in labor, not only in terms of wages but also in streamlined processes aimed at minimizing the burden on workers and in automation that seeks to optimize efficiency.

We continue to expect more acquisitions from retail pharmacies to expand further into healthcare services eventually.

– Julie Utterback, senior equity analyst, healthcare, Morningstar Research Services.

22 January 2024 DRUGSTORENEWS.COM

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COVER STORY: 2024 RETAIL DRUG OUTLOOK

“We’re committed to providing access to consistent, safe, high-quality health care to the patients and communities we serve,” a CVS spokesperson told Drug Store News. “We face unprecedented demand and a clinical workforce shortage in the health care industry and are making targeted investments in our retail pharmacy business in direct response to feedback from our pharmacy teams.”

These investments include enabling employees to schedule additional support as needed, enhancing pharmacist and technician recruitment, and hiring and strengthening pharmacy technician training.

CVS also said it supports higher wages, benefit enhancements, new pathways for career advancement and operational improvements. These changes began in November 2023 and will roll out throughout 2024.

3.

Retailers expand healthcare services

Retail drug store operators will also likely continue to expand their auxiliary healthcare service offerings, analysts said, even as they digest their recent acquisitions in this space.

Walgreens, for example, said in January 2023 that it was pausing its merger-and-acquisition activity after buying majority stakes in healthcare providers VillageMD and CareCentrix in 2021, followed by the acquisition of urgent-care provider Summit Health by VillageMD in 2022.

CVS also said it was focused on the growth and integration of its recent

24 January 2024 DRUGSTORENEWS.COM

acquisitions of Oak Street Health and Signify.

“We’re redefining the health care experience to put consumers at the center and connect them to care more locally and more conveniently than ever before,” the CVS spokesperson said, citing the creation of new centers that have an Oak Street Health clinic and a CVS pharmacy side-by-side.

The model seeks to support medication adherence, counseling and support for Oak Street Health patients, the spokesperson said.

Utterback said she expects to see drug stores making more acquisitions in the healthcare services space, although they appear to be taking time to digest recent acquisitions before making more moves.

“We continue to expect more acquisitions from retail pharmacies to expand further into healthcare services eventually,” Utterback said.

“Whether that happens in 2024 or not remains anyone’s guess, but we do not think the investment in healthcare service operations is over by any means.”

A tight labor market could further complicate the staffing difficulties that retailers have faced as they expand into other healthcare services, Marcotte pointed out.“I see this as being a real challenge,” he said.

In fact, the expansion in existing pharmacies of healthcare offerings such as testing and vaccine administration have contributed to some of the pharmacy labor unrest at both CVS and Walgreens.

The ongoing expansion of pharmacy-based healthcare services also has a legislative component that has gained momentum heading into 2024. The Equitable Community Access to Pharmacist Services Act would ensure Medicare beneficiaries have access to pharmacist-provided vaccination, testing and treatment services.

“It’s a really, really important piece of legislation,” said Chris Krese, senior vice president, congressional relations and communications, at the National Association of Chain Drug Stores.

NACDS is part of the Future of Pharmacy Care Coalition, a group of organizations that supports the measure.

The bill also enjoys bipartisan support in Congress, said Krese.“We have a really, really good roster of supporters of this bill,” he said. “The sponsors in the House and the Senate are very, very active.

They’re very, very committed.”

In addition, NACDS and other associations also support the expansion of pharmacy services to include nutrition counseling, as proposed in the Medical Nutrition Therapy Act, which also could advance in the year ahead, said Krese. This bill would improve Medicare coverage for pharmacists to be able to refer patients to nutrition specialists who could assist with dietary recommendations for managing conditions such as diabetes and heart disease.

NACDS polling shows us that Americans look to pharmacists for reliable information about nutrition, he said.

COVER STORY: 2024 RETAIL DRUG OUTLOOK

“We’re looking at this really, really important resource, which is the trusted pharmacist to help people understand the power of nutrition, to prevent and manage chronic disease,” said Krese.

4.

The drug store footprint evolves

Retail drug stores are being forced to rethink their strategies for store placement and design. Walgreens, CVS and Rite Aid are in the midst of store-closure campaigns that are resulting in the divestiture of hundreds of locations, and at the same time they are seeking to optimize the product and service offerings in their remaining locations.

CVS, for example, shuttered 300 locations each in 2022 and 2023, the CVS spokesperson said. Another 300 are slated for closure in 2024 to fulfill its previously stated goal of closing 900 stores.“The realignment is based on our evaluation of changes in population, consumer buying patterns and future health needs to ensure we have the right kinds of stores in the right locations for consumers,” the spokesperson said, adding that the realignment also supports the evolution of its stores into community health destinations.

Marcotte said the overall expansion strategy that drug stores had been pursuing for decades “has really run out of steam.”

“Now drug stores are considering, ‘Where do we want to be? How do we want to sell?

What do we need in that box? And do we have the right box?’” he said. “So, 2024 is going

26 January 2024 DRUGSTORENEWS.COM

2024

is going to be problematic as the industry tries to find a new mix of products and services to move forward with.

– Dave Marcotte, senior vice president, cross-industry/ cross-border and technology, Kantar Consulting

to be problematic as the industry tries to find a new mix of products and services to move forward with.”

CVS, for example, is enhancing a new store prototype that places its health and wellness offerings at the forefront. Key elements include a centrally located checkout area that enables more frequent engagement between colleagues and consumers, a simplified assortment that enables consumers to more quickly find the health and wellness products they need while also encouraging exploration, a circuit-like layout that places wellness and beauty in the front of the store and endcaps that are focused on health and wellness. The pharmacy, which has a dedicated consultation space and expanded waiting area, is also located at the front of the store.

In addition to the store closures underway at the big three traditional drug store operators, Kroger and Albertsons are also expected to sell 413 stores to satisfy potential federal antitrust concerns as their planned merger moves forward in 2024. In a statement at the time the proposed spinoff was announced, Albertsons and Kroger said all pharmacies associated with the divested stores will remain with the stores and continue to operate. However, some observers—in particular the United Food & Commercial Workers Union—have questioned whether or not the proposed buyer, C&S Wholesale Grocers, plans to operate the stores for the long term.

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COVER STORY: 2024 RETAIL DRUG OUTLOOK

Rite Aid’s ongoing bankruptcy reorganization efforts are another wild card in terms of the physical store presence of traditional drug stores.

When the company filed Chapter 11 in October, it shuttered 150 locations and announced plans for another 31 closures in November, leaving it with about 2,000 stores.

While some of those stores could be picked up by other drug store retailers in 2024, many locations will likely end up staying closed or being converted to other uses, analysts said, as the industry overall continues to focus on rationalizing its store footprint.

5.

Opportunities loom for PBM Reform

Federal legislation that would make drug pricing more transparent for both consumers and retailers appears to be on the horizon, according to industry associations. Both parties in Congress appear concerned about drug prices, and they have been increasingly supportive of the industry’s longstanding call for legislation that would change the pricing practices of PBMs. “We have a really unique opportunity here,” said Krese of NACDS. “There’s bipartisan focus on the issue, which is wonderful.”

He said NACDS is hopeful that PBM reform measures could be incorporated into a larger piece of legislation sometime in early 2024. However, he pointed out that it’s still possible that PBM reform gets crowded out by other issues, or that Congress passes legislation that doesn’t address the specific industry concerns around drug pricing.

“We’re concerned about the idea that PBM reform ‘in name only’ could happen, which means it wouldn’t have the necessary positive effects for patients and for the pharmacies that serve them,” said Krese.

“What we hope will happen is that there will be very significant reforms related to Medicare and Medicaid,” he said. “We have very important reforms that have made it through congressional committees on both the Senate side and the House side, and we’re going to keep up the push to encourage Congress to cross the finish line on those important PBM issues and deliver the real reform that really is needed.”

With 2024 being a presidential election year, NACDS sees the early months of the year as the best window for legislative action, given the distractions that are bound to arise as the election

28 January 2024 DRUGSTORENEWS.COM

gets closer and legislators spend more time campaigning.

The increased politicization of issues that occurs in election years could muddy the opportunities in 2024, Krese said, although he also pointed out that lowering patient drug costs could provide powerful campaign fodder for legislators seeking re-election.

Ronna Hauser, senior vice president of policy and pharmacy affairs at the National Community Pharmacists Association, agreed that the potential for PBM reform holds promise for 2024.

“There are several large legislative packages that definitely have movement, and we are working diligently to hopefully get those to floor votes in both the House and Senate and get them across the finish line,” she said. “There are many provisions in those federal legislative packages that would benefit our members and their patients.”

Among the legislative proposals is S. 2973, the Modernizing and Ensuring PBM Accountability Act, which contains several provisions seeking to enhance drug-price transparency, change PBM practices related to Medicare Part D and Medicaid managed care, and separate PBM compensation from drug costs, according to the NCPA. Other legislative and regulatory issues that NCPA has on its radar for 2024 include the Centers for Medicare & Medicaid Services final rule that eliminates retroactive collection of direct and indirect remuneration fees, but instead assesses them at the point of sale, which took effect Jan. 1, 2024. While this was a sought-after change, it could result in reduced income for pharmacies in the first few months of 2024, during the so-called “DIR hangover” period.

“It’s a double hit, and we’re concerned about cash flow for our small business members,” said Hauser.

Other issues of concern to independent pharmacies include preparing for the aspects of the Inflation Reduction Act that will kick in in 2025 and 2026, including the Medicare Prescription Payment Plan—previously known as the Out of Pocket Smoothing Plan—that allows patient to pay out-ofpocket drug costs over the course of a year, and the Medicare Drug Price Negotiation Program. dsn

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Target, Locked Is the retailer still the hip, trendsetting option for beauty and wellness discovery among consumers?

By Mark Hamstra

The year 2023 was a rough one for Target. The retailer’s stock price took a hit amid pride controversy in early summer, and because it’s known as the “upscale discounter,” its sales have been affected by a slowing economy. As former Target Vice Chairman Gerald Storch told Fox News in June 2023, “it’s not good to be the upscale discounter at a time when the consumer doesn’t have a lot of money to spend.”

Still, among a certain consumer, Target is still the cool kid on the block.

Target’s health and beauty care departments are in a constant state of evolution, but they continue to serve as a platform for emerging, highconcept and trend-setting brands to reach mass consumer audiences.

The company has become adept at taking direct-to-consumer brands and transitioning them to a brick-and-mortar environment. It has continued to focus on expanding its beauty and wellness product assortments to be more inclusive and reach a broader consumer base.

Perhaps the most significant evolution of Target’s approach to beauty care recently has been its response to a broadening definition of what beauty care means to consumers, particularly in the wake of the pandemic, said Sarah Broyd, a partner at Clarkston Consulting.

“Consumers have become a lot more focused on health and wellness,

and self-care, rather than just makeup,” she said. “A few years ago, Target seemed like it was going down a path in which it was trying to be more like the Sephoras of the world, but they have since tailored that to focus more on what consumers are looking for. They are focused on a more well-rounded approach to health and wellness, and on having a broad diversity of products.”

In February of 2023, Target unveiled plans to add thousands of new self-care products, including more products from Black-owned and inclusive brands, and more products that meet its Target Clean standards that prohibit certain ingredients.

“Self-care is one of the areas where we are seeing the fastest growth,” said Cassandra Jones, senior vice president of merchandising, essentials and beauty, at Target, in a blog post at the time.

“The idea of beauty products is expanding to include self-care, self-expression and health—and they all go hand in hand. So many ‘health’ items also relate to beauty, and vice versa.”

Target’s product assortment continues to evolve in the mass market, especially as the wellness and beauty sectors merge.

30 January 2024 DRUGSTORENEWS.COM

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Meeting Demands for Sustainability Target has been especially adept at meeting consumer demands around sustainability with its beauty care assortments, said Dana Kreutzer, project lead, beauty and wellbeing, at market research and consulting firm Kline & Co. “Target continues to trailblaze in the beauty space, but also does an excellent job helping consumers understand how certain products and brands align with the retailer’s innovative programs, like Target Forward, Target Zero and Target Clean,” she said, citing the retailer’s environmental and sustainability initiatives.

This is especially true on the company’s ecommerce site, where consumers can easily filter products according to sustainability claims, inclusivity, and more, and understand the product’s benefits, Kreutzer said.

In addition, Target has made progress in its efforts in how it educates consumers on beauty regimens and product use through its Beauty Edit program, she said. Beauty Edit allows consumers to build a skincare routine with dermatologistrecommended brands such as CeraVe, or learn makeup application, for example.

“Target is continually expanding its beauty assortment and making efforts to evolve with trends and shifting consumer behavior,” said Kreutzer. “Target started stocking natural and clean beauty products, which are still very relevant today, 10-plus years ago. Now, the retailer is home to 300-plus clean beauty brands and has made inroads in male grooming, indie beauty, prestige beauty through its Ulta partnership, and even the wellness space by adding brands like Love Wellness to the mix.”

The retailer recently announed Rihanna’s Fenty Beauty products will be available at Ulta Beauty at Target.

In 2022, the retailer unveiled a new layout that is bigger than its previous stores, offering more room and optimized space for guests.

Jones also has been overseeing Target’s partnership with beauty care products retailer Ulta Beauty, through which Target is rolling out Ulta Beauty “store within a store” departments in its own stores. This has allowed Target to bring in more premium and prestige brands while focusing its own traditional beauty care sets on mass brands with broad consumer appeal and more affordably priced niche brands.

“Ulta doesn’t dilute from the mass product that Target sells, and it doesn’t dilute from the Ulta brand name that does sell more premium products,” said Broyd. “It’s the best of both worlds. Ulta is able to reach consumers who might be near a Target, so they don’t have to drive to an Ulta, and Target is ultimately getting more sales of these higher-end products.”

At the same time, Target is also concentrating on bringing in more diverse-owned brands, supporting its efforts to reach a wider base of shoppers. In beauty care, these brands might carry more products that offer a broader range of skin tones, for example.

These efforts can also dovetail with Target’s goal to offer its customers “affordable joy,” said Broyd.

“They are priding themselves on having more affordable beauty care products, and that includes more wellness and self-care, including more private label,” she said. “Their goal is to have a price point of under $10 on most of their self-care products.”

Tiffany Hogan, director of retail insights at consulting firm Kantar, agreed that the blending of beauty care with health and wellness, combined with the expansion of the Ulta Beauty premium and prestige beauty product sets, have bolstered Target’s efforts to deliver consumers the on-trend products they are looking for at a range of price points.

“I think Target’s doing really interesting things,” she said. “They haven’t lost any ground as far as being a destination for those directto-consumer brands that are looking to expand.”

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32 January 2024 DRUGSTORENEWS.COM

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beauty-brand discovery, Hogan said, “Target is right behind them.”

Bringing Ulta into its stores, she said, gives Target more leeway to expand its mass offerings with adjacent and overlapping categories including new and innovative products in the personal care and health and wellness categories.“It connects those up-and-coming brands to its broader beauty care offerings,” said Hogan.

Hogan described Target’s blending of beauty care and health and wellness products as a “lifestyle” approach to merchandising, in which the retailer is adapting to consumers’ more holistic approach to health, beauty and wellness.

“Target is really approaching it from a lifestyle perspective, rather than just a category perspective,” she said, citing as an example the merchandising of some vitamins alongside private label activewear.

“Cross-category merchandising is something that they’ve always done well, and I think it’s really coming to light in health and wellness in particular,” said Hogan.

Boyd of Clarkston Consulting likewise noted that Target has also merchandised certain trendy vitamin and supplement brands within its beauty care departments, in addition to the more traditional vitamin and supplement assortments in the section dedicated to those items.

“We’re definitely seeing a lot of crossover from what we would call a normal category position to

more of an end-use or a solution,” said Hogan.

She agreed that Target’s partnership with Ulta has enhanced Target’s beauty care positioning, because its shoppers now have access to even more premium and prestige brands than they ever had before. The combination could provide added convenience for customers who had been shopping at both retailers for their beauty routines, she said.

“It’s both a convenience play and a premium play for Target,” Hogan said.

She noted that the Ulta assortment in Target is largely focused on the higherend products, which leaves it less in direct competition with the mass offering that comprises Target’s main beauty sets.

“A lot of brands like La Roche-Posay are still in Target on the ‘Target shelf,’ and we see those getting a little bit of elevated merchandising, as that’s the high end of Target’s offering now, even though they also have Ulta,” Hogan said. “It kind of elevates the whole department a little bit, from an experience perspective.”

She noted that while Target has had some strong private label brands in personal care, such as its Up & Up product line, it hasn’t had as much penetration in private label beauty care.

“They don’t really have a mid-tier [private label] at this point, and that’s a place I’ve been watching for them to potentially evolve,” said Hogan.

The partnership with Ulta could eventually allow Target to free up some space on its shelves for new private label brands in the category, she said, citing comments from the retailer about its desire to create more new private label brands in the future.

A retail platform for digitally native brands Candace Corlett, president of WSL Strategic Retail, a consulting firm specializing in shopper research and retail strategies, agreed that Target continues to be a leading platform for emerging brands. This is especially evident in some health and wellness brands that had historically been sold direct-to-consumer.

In 2022, Ulta expanded its shop-in-shop footprint in select Target locations. The plan is to have at least 800 shop-inshop Ulta locations within Target stores.

34 January 2024 DRUGSTORENEWS.COM

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Managing Shelf Space As Target continues to bring in new brands to its main beauty sets, it has reduced the number of SKUs for some products in order to make room, as part of an overall effort to revamp the departments, said Sarah Broyd, a partner at Clarkston Consulting.

Target has committed to adding 40 new products this year alone in the health and beauty space, she noted.

“That’s a lot, when you think about shelf space,” she said. “When you go into Target stores now, there is a smaller amount of shelf space dedicated to each brand, because there is a higher diversity of brands.

“They have retooled their shelves to be able to hold more products, and make it more walkable, but the amount of SKUs they have is significantly higher than what it was in the past.”

In addition, Target is adept at rotating products out of its assortment if they don’t generate the desired results in order to make room for not new items, said Tiffany Hogan, director of retail insights at consulting firm Kantar.

“They’re more interested in newness and bringing shoppers in with those products than they are with necessarily keeping all of the [underperforming products], Hogan said. “That’s something they’ve done well. They take a merchandise planning approach—that seasonal approach that they’re very good within other categories, and apply that to beauty as well.”

36 January 2024 DRUGSTORENEWS.COM

While the Ulta partnership has given Target a greater assortment of prestige brands, she said that Target remains on the cutting edge of consumer trends.

“I think Ulta brings brands to Target that Target could never get, like MAC Lipstick, but I don’t think they have lost their trendsetter reputation,” said Corlett. “I think they have been exceptionally good at translating brands from social media and direct-to-consumer to the store.”

She cited brands such as hims & hers in particular, and also noted the success Target has had with the Olly vitamin brand and with Harry’s, the men’s grooming franchise.

“They are still trying niche brands,” said Corlett. “They were the ones who first brought us Olly, and they did a terrific job transitioning Harry’s. I am particularly fond of the men’s grooming set that they have created—it’s almost like a private room for men.”

The fact that consumers can find brands that they recognize from social media on Target’s store shelves gives the retailer “a lot of cachet” with shoppers seeking out trendy and emerging brands, she said.

And for the brands, Target provides a platform to reach more consumers and gain widespread bricks-and-mortar distribution.

“They made that Olly brand of vitamins,” said Corlett. “Without Target, I don’t think Olly would have been there. Target gives these brands the store distribution they need to get to that next level, and Target shoppers love the discovery.”

Among some of the recent direct-to-consumer beauty/self-care brands that have transitioned to exclusive retail partnerships with Target is Futurewise, a skin care products company that had launched online just a few months before onboarding with Target. Others include Function of Beauty, a hair care brand that launched a line of hairstyling products exclusively for Target.

“In the last several years, Target has become an incubator of sorts for direct-to-consumer brands,” said Broyd. “I think if anything, they have doubled down on bringing traditionally native digital brands to their stores.” The Function of Beauty partnership is especially noteworthy, she said, because they specialize in offering customized hair care products from their website.

“The fact that Target brought them onto their shelves is an interesting innovation in the space,” said Broyd. “Function of Beauty can try to get consumers to buy the more expensive version of the product from them directly.” dsn The retailer offers a wide selection of beauty assortments that is popular among shoppers looking for discovery.

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What Does the Future Hold for Beauty?

Industry experts predict what will drive consumer purchasing habits in 2024

We rounded up several industry leaders to make their prognostications of what will shape the industry in 2024 and beyond.

Jeremy M. Lowenstein, chief marketing officer and head of international, Milani Emerging makeup trends for 2024 will blend nostalgia, sustainability, inclusivity and technological innovation. Nostalgia with a modern twist will play a significant role, as styles from past decades, like the ‘90s and early 2000s, make a comeback.

However, this resurgence will not be a mere repetition of the past; they will be reimagined with contemporary techniques and products. Subcultural trends will also continue to be relevant as the new generation leans into individualism rather than macro trends encompassing an entire generation.

Building on the momentum from 2023, there were a few big product trends such as lip oils and tubing mascara that we anticipate will still be going strong into 2024, aligning with Milani’s most viral launches Highly Rated Lash Extensions Tubing Mascara & Fruit Fetish Lip Oils. Blush, whether used for a healthy flush or pop of color, will continue to gain momentum as #blushhack techniques and products for blush layering continue to be hot TikTok topics.

Sheryl Teo, Teo CEO and founder, Popcorn Growth Consumers will continue to focus on the link between mind, body and beauty—emphasizing the connection between mental well-being and outward, physical appearance.

‘Neurocosmetics’—ingestible beauty supplements aimed at both improving health

38 January 2024 DRUGSTORENEWS.COM

and physical appearance—have exploded and will continue to grow in popularity.

Traditional beauty brands will continue facing increased competition from wellness manufacturers like Nutrafol, ARMRA, Vital Proteins, etc., who are marketing their supplements as the solution to the problems that beauty consumers are looking to solve.

Collagen, colostrum, probiotics, etc., once limited to the health and wellness space, are emerging as favorites among beauty influencers.

Hair loss has millions of conversations on social media.

Consumers are recognizing the issue is tied to physical illness and stress, and that it is affecting mental health.

Consumers are having more honest and transparent conversations online about the skin and hair problems they’re having. Health and wellness companies have stepped up their offerings to meet these needs. Beauty brands must continue to rise to this challenge, listening to the conversation, recognizing that consumers are focusing on the link between overall physical health and outward appearance. Brands will need to identify the problems consumers are looking to solve and evolve both their product offerings and their engagement with consumers in these social media conversations.

Personalized, virtual consultations will continue to drive the consumer experience, meeting the demand for education and understanding of the product, its ingredients, purposes and best ways to use them. Drug store brands like Maybelline as well as luxury brands like Giorgio Armani are all tailoring their online shopping offerings to be targeted and hyper-personalized with quizzes, try-ons and other AI/AR experiences.

Richard Gallucci, senior vice president of sales, Kiss Products, Inc. There is a post-COVID hangover that exists at a higher level in beauty than other categories. There is a misperception that what took place

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during COVID was a marketing event that will continue to drive sales, especially in the lash and nail categories, which grew with at-home use during the pandemic.

Two years later, while the industry has become somewhat saturated with competition, not all new brands are delivering on the promise of incrementality. The expansion in brand offerings has not impacted market share nor brought new consumers to these categories, as one would have expected to support all the new brands in the market.

If we have learned anything, we have learned that it’s hard to catch lightning in a bottle—the best and biggest companies in the world take 4-6 months or longer to bring a new product to market. It is also difficult to keep up with nail trends like those that blow up after Hailey Bieber walks out of the nail salon. In most cases by the time brands catch up to viral moments the trend is over.

Kiss’ consumer research indicates that one of the biggest barriers for entry into [artificial] nails and lashes is applying glue. Kiss has the solution with imPRESS Manicure & Falsies, no-glue nails and lashes, just press-on and go. Kiss’ strong innovation pipeline has more to keep consumers coming back to the brand they know and love with more exciting game changers for the categories we compete in.

Significant innovation takes time, and it takes research, experience and savviness. While there is always room for incremental competition that offers a real point of difference, retailers do not want to oversaturate categories with ‘me-too’ brands. In the future, we may see retailers creating more in-store ‘hot spots’ where brands can gain new distribution on a trial or promotional basis or even be available on dot com only.

Retailers will enjoy the most success sticking with brands consumers know and look for in stores that keep customers coming back with relevant marketing and new innovative products. KISS drives consumers into stores and is bringing new consumers to the beauty category year over year with new product launches in nail, lash and our emerging textured hair brand, Colors & Care.

To answer your question about if I had a crystal ball— my crystal ball says we must move past thinking that what happened during an unprecedented retail shut down is going to have relevance about what will happen moving forward and start really looking at what the consumer is asking for, work to anticipate trends, then deliver on that consumer proposition. We expect retailers will be leaning in with the brands that have provided the utmost support, innovation, and real partnership. These are the brands that have and will continue to deliver the most incremental results. Kiss will be one of those brands.

40 January 2024 DRUGSTORENEWS.COM

Scott Emerson, president, The Emerson Group In 2023, many beauty companies witnessed an uptick in dollars but a decline in unit sales. Interestingly, only two retailers experienced increased units: Walmart and Aldi.

This might shed light on why companies like L’Oréal Consumer Products Division faced challenges in unit sales due to heightened price consciousness among shoppers.

The recent stock market rebound, sparked by a robust job market, suggests a potential downturn in inflation, offering a glimmer of hope.

While 2024 is anticipated to pose challenges, it sets the stage for a positive trajectory, paving the way for a full-scale industry rebalance by 2025.

This shift signifies a move from the current emphasis on retail pricing conversations, as consumers gradually revert to shopping without scrutinizing price tags. Normalizing prices, such as accepting a $6 Starbucks coffee, will make consumers less conscious. By 2025, this price sensitivity is predicted to become the industry norm, transforming how consumers engage with beauty products. The beauty industry is amid a recalibration, and by 2025, a new normal is expected to emerge, reshaping the dynamics of consumer behavior and market trends.

Deborah Dixon, owner, Precious Mineralz Regardless of size or market positioning, I think that retailers are going to direct specific focus to identifying new, innovative products/brands to help differentiate themselves from other retailers. I think there will be continued focus on development of products that a customer can buy online or in store, that enables them to have a full line of products that cleanse, moisturize, exfoliate skin that provide one-stop shopping. But they also want a ‘spa experience’ at home.

There will be continued focus on products for all skin types and tones. With focus on the environment, we will see more companies using upcycled ingredients and recyclable containers. There is some shift in the amount of influence that some current “influencers” have. I think some popularity is fading and that consumers are more savvy since the pandemic about ingredients and products.

Dana Steinfeld, senior vice president, brand incubation and product innovation, Maesa As categories merge in consumer’s minds, brands are seamlessly expanding into multiple segments and aisles for more holistic product experiences.

Defining by category has become obsolete. For example, hair brands

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are launching hand creams, fragrance brands are launching detergent and hair care, skin care brands are collaborating with indie brands in other categories like fragrance for example.

We are all seeking a holistic approach to wellness focused on maintaining mind and body balance through daily habits and behaviors that support physical, emotional and mental wellbeing. With this, natural and clean ingredient callouts continue to drive consumer appeal and drive purchase while consumers demand added functional benefits to enhance products, such as mood enhancing benefits in fragrance.

Sustainability in beauty has expanded to encompass a broader set of principles, incorporating ethical sourcing, clean formulations, eco-friendly packaging, social responsibility and transparency without compromising performance.

The redefined approach aims to create a positive impact on the environment and society while meeting the evolving expectations of the ultra-informed consumers.

Driven by the medicalization of beauty and “skintellectual” consumer, consumers are seeking validated proof behind claims, clinically proven efficacy, long-lasting results, and a balance of nature merged with science.

Bilderback, vice president of Logan Bilderback marketing, Beauty Partners, LLC Looking ahead to 2024, we anticipate dominant trends to center around heightened environmental consciousness, emphasizing sustainable packaging and skin care-infused products. AI integration will further cater to our consumers’ needs as well.

For nails, we envision a drive toward healthier ingredients, championing eco-consciousness and sustainability.

At Nailtopia, our pioneering patented formula—plant-based, superfood-infused, with AHA/PHA—ushers in the era of environmentally conscious beauty. Our partnership with Disney heralds an exciting future, while our focus on smarter packaging innovations for nails in 2024 and beyond propels us forward.

Similarly, eyebrows are poised for an eco-conscious makeover, integrating skin care elements into their formulations. Just as we care for the hair on our heads, maintaining eyebrow health is paramount. Arches & Halos leads the charge by infusing our pens and pencils with brow treatments, creating a dual-action product that both beautifies and nurtures.

In this ever-evolving landscape, brands must sharpen their awareness, align with consumer preferences, and swiftly introduce new tools to enrich the overall buying journey. It’s an exhilarating time for the beauty industry—one filled with promise and endless possibilities.

42 January 2024 DRUGSTORENEWS.COM

Paula Scandone, general manager and senior vice president, Shielded Beauty Mass brands like CoverGirl/Maybelline have historically been what drug stores and Walmart have offered. This was because the prestige brands would not go into those retail distribution points. As we know more and more, the lines are blurred and not each point of distribution has the same customer. Walmart is adding more prestige brands and so is CVS. And there are also the partnerships—Target x Ulta and Sephora x Kohls and Walmart x Space NK. CVS is really curating a nice range of brands that cater to the Gen Z demographic. I love what CVS has been doing and I think it is a huge credit to the merchandising team that they understand who their customer is, who they want as a customer and then finding the brands to bring that consumer into their stores and online to shop.

I think it will come down to meeting the consumer where they shop as well as offering brands that are meaningful and intentional.

Every part of education around a brand is through social media on all platforms and if a brand speaks to the consumer, specifically Gen Z, that consumer will go where that brand is.

Daniela Ciocan, beauty expert and founder, Access Beauty Insiders As wellness continues to experience the most growth, we will see more skin care products with health focused positioning. Look out for adaptogens ingredients becoming popular across leading markets worldwide.

Bioengineered ingredients will become more prevalent across beauty in both skin care and bath products. This trend will be driven by the fact that they are more sustainable to produce, while the fact that they are produced in a lab point to a more reliable supply, despite a growing incidence of adverse weather conditions caused by climate change.

Hybrid makeup will continue to evolve and blur the lines between skin care and makeup categories: clean formulas, active ingredients and more precise color matching will eliminate the need for heavy SKU lineups, ultimately delivering products that are good enough to sleep in.

The cost-of-living crisis has given way to huge demand for duped beauty products, with a growing number of lower-priced color cosmetic, fragrance and skin care products offering similar claims, packaging and fragrances to higher-priced prestige products. Expect to see this trend reaching a fever pitch as new dupe launches swell the number of offerings. dsn

I NS I D E

The Doux and The Future Known for its texture-focused hair care solutions, the brand has entered the professional sector with CosmoProf

By Gisselle Gaitan

The Doux, known for its texture-focused hair care solutions that merge old-school flavor with new-school science, has entered into the professional sector with CosmoProf.

DSN spoke with Founder and CEO Maya Smith about the brand’s origins, how it differs from other hair care solutions on the market and what the future of the company looks like.

DSN: Can you tell us how The Doux came to be?

Maya Smith: My husband was stationed in the U.S. Air Force in Germany, and most of our clientele were active-duty military. My clients didn’t have to layer several products to create one result, which is what, traditionally, natural hair care looks like. At the time, I couldn’t find any products that were versatile enough for people who were transitioning from chemically treated hair to their natural hair that didn’t involve layering several products.

I started working with a group of chemists to create multifunctional products that would help me save time while delivering consistent results on several different textures because my clients were everything from bone straight to wavy to type 4 hair.

DSN: Can you tell us about the brand’s products?

MS: We are all about one-product solutions. Our product development is informed by feedback from actual clients and nearly three decades of experience from behind the chair.

DSN: What separates The Doux from other brands in the same space?

MS: Most brands are first developed by marketers who observe the market, then craft a marketing story based on what ingredients or technology is trending, and then formulate products based on that story. The products are then sampled by a few people, which may or may not include a textured hair expert. Hairstylists are typically left out of the process until it’s time to co-sign on the marketing story to validate the brand’s positioning.

44 January 2024 DRUGSTORENEWS.COM

The Doux is the opposite. Every step of our research and development starts with a curl expert, including proposed ingredients, technology, customer insight and salon performance.

Stylists are the first part of development, not the last.

This approach really speaks to why our products perform differently. They were created in the salon space, not in the kitchen or in the boardroom.

DSN: What is the origin of the brand’s CosmoProf debut?

MS: I’ve been a Cosmoprof customer my entire career. Since our inception, we’ve acquired a loyal community of fellow salon owners and cosmetologists. It was important to me to offer professional pricing to stylists who support the brand and trust The Doux with their client’s curls.

DSN: What does the future look like for The Doux?

MS: We’re hyper-focused on leaning into where we started– the salon. Supporting the professional community and growing our product assortment to improve hair care between salon visits is our priority because the stylist-led brand representation in mass retail is the pathway to better quality across the category. dsn

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PHARMACY TECH AND AUTOMATION

Pharmacies should keep abreast of new developments that can help them cope with the day-today challenges the industry continually presents.

The ROI of Rx Technology

Automated solutions give pharmacists more time to focus on higher-profit patient services

By Debby Garbato

When COVID-19 hit the United States nearly three years ago, business as we knew it came to a screeching halt. Retail pharmacy was an exception. It ramped up operations like never before, beefing up staff and temporarily expanding pharmacists’ scope of practice.

In many states, this led to permanent legislation that brought services way beyond pill dispensing. While this is paving the way for better ROI, it increases demands on pharmacists’ time.

There are only so many pharmacists to go around. Many retail locations are understaffed, causing concerns among pharmacists about quality of care. To free up pharmacists, retail pharmacies are stepping up technology investments. New products can improve accuracy, reduce reliance on manual processes and handle added paperwork created by augmenting services. They include better central-fill systems as well as technologies that schedule appointments, handle billing and document patient information. Other solutions communicate with patients through

46 January 2024 DRUGSTORENEWS.COM

“At the end of the day, everyone is looking for things that save time and steps. Pharmacy operational systems continue evolving.”

– Drew Massey, director of pharmacy operations, Fruth Pharmacy

digital mediums, sending important health information and marketing messages. In some areas, automated machines are dispensing prescriptions 24/7.

“Automation is having the biggest impact on ROI,” said Drew Massey, director of pharmacy operations for Point Pleasant, W.V.-based Fruth Pharmacy. “At the end of the day, everyone is looking for things that save time and steps. Pharmacy operational systems continue evolving.”

Historically, pharmacy technology has focused mainly on accuracy, safety and efficiency within the dispensing process, said Jason Ausili, Pharm.D., head of pharmacy transformation, EnlivenHealth/Omnicell.

“While these are still important, we’ve seen a shift to enhance patient engagement and clinical services, with an emphasis on freeing up resources that can be reinvested in patient care,” he added. “Although there’s still work to do on the policy front, progress has been made to expand [pharmacists’] privileges granted during COVID-19.”

Centered on support to improve patient care The role of the pharmacist has expanded beyond transactional dispensing. Increasingly, pharmacists are knowledgeable and collaborative partners working to improve health outcomes within their community.

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PHARMACY TECH AND AUTOMATION

Expanding clinical services can help make pharmacies destinations. According to the McKinsey & Co. report, “Meeting Changing Consumer Needs: The U.S. Retail Pharmacy of the Future,” 40% of consumers are interested in having retail pharmacies offer more healthcare services, including common-illness treatment, whole-health fusion, lab work and primary care.

Disparate Reimbursement Policies In recent years, more states have mandated that insurance companies and other providers reimburse for clinical pharmacy services, which is needed to improve margins. This requires additional technology, since reimbursement is done via medical billing processes, not PBMs. But medical billing and reimbursement rules differ across states and insurance providers.

This prompted Omnisys to offer Strand-Rx, an interconnected billing-enabled electronic health record (EHR) that provides in-workflow guidance for appropriate documentation and billing, said David Pope, chief pharmacy officer. Interacting with the retailer’s pharmacy management system (PMS) and patient scheduler, the EHR also delivers vital information to patients, like lab results, through an easyto-use mobile pathway.

“I’m willing to offer new clinical services but need something to make me able to,” added Pope. “What should I charge patients? Am I documenting appropriately to satisfy state requirements? That’s where technology plays the biggest role from my perspective.”

This type of technology is fairly new to retail pharmacies. “We get to see across many verticals,” Pope added. “Retail is just now adopting this type of clinical documentation. Last year, we were slightly behind. The pandemic has made pharmacies connect with patients in new ways. I’ve never seen so much investment.

They want to become the `front door’ in health care.”

EnlivenHealth has developed integrated data and analytics tools that ensure pharmacies receive “appropriate remuneration on adjudicated prescriptions,” said Matthew Feltman, R.Ph., senior director, solution sales and strategy. EnlivenHealth is also helping pharmacies cut costs and provide a better patient experience while being environmentally friendly. Digital Medication Information Delivery, in

“Pharmacies are increasingly investing in ways to manage and track card utilization and solve reimbursement challenges.”

– Kristina Crockett, VP of product management, CoverMyMeds

short, eliminates the reams of paper that typically accompany prescriptions.

“We’re now able to offer a patented process for the digital delivery of FDA Medication Guides, medication monographs, Vaccine Information Statements and other health literacy information,” said Feltman. “Think of the amount of paper and toner cartridges not entering landfills. From a clinical perspective, it’s secure delivery, delivered the way patients prefer.”

Prescription cash discount cards are another focus. In recent years, use has increased. According to IQVIA’s white paper, “Pharmacy Discount Card Utilization and Impact,” utilization represented 5.4% of pharmacy transactions in 2021, a 63% increase over 2017.

Since not all cards are created equal, CoverMyMeds created a technology

Omnisys’ Strand-Rx is an interconnected billing-enabled electronic health record that provides in-workflow guidance for appropriate documentation and billing.

48 January 2024 DRUGSTORENEWS.COM

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PHARMACY TECH AND AUTOMATION

CVS Augments Rx Technologies When it comes to pharmacy, CVS likes to be on the cutting edge with both internal and consumer interfacing solutions. What follows is a brief list of recent innovations provided by Jared Tancrelle, SVP, store operations.

“Pharmacy is at the heart of our business,” said Tancrelle. “We’re always looking to improve the experience for both colleagues and patients. We’re CVS integrates technology-based focused on supporting pharmacy teams services to make prescriptions with the tools they need to provide excellent easy and accessible for pickup. care to the millions we serve every day.”

Enhancements have been made in three key areas.

Technology, Training and Support: • Automated 90% of data entry for e-prescriptions, mitigating the risk of human error and improving quality and patient safety.

• Transitioned the prescription pick-up process from an alphabetic to numeric system, creating an additional safeguard and improving patient experiences.

• Implemented technology that performs real-time quality checks as part of the workflow process, identifying and preventing potential error types while prescriptions are being filled.

• Continuously improving prescription verification processes and systems to equip pharmacists with advanced technology to support quality assurance checks on each prescription prior to dispensing.

- Virtual verification technology, used in most pharmacies, lets pharmacists perform product verifications based on images of medications captured while the script is being processed. This maintains important quality and safety checks while giving pharmacists more time to engage in clinical duties like direct patient interactions and consultations.

Sharing Workloads Across Stores: Certain parts of pharmacy workflow can be completed virtually and may be done by a team in a neighboring store (with capacity) or centrally, varying by state. This helps improve workflow and workload, allowing pharmacists to have more direct patient interactions. This also help pharmacies adapt to unplanned staffing fluctuations.

Drug Utilization Review System: SmartDUR, a new, action-oriented tool, supports pharmacists in performing prospective Drug Utilization Review, streamlining the process. It uses clinical data, smart rules, and algorithms to help identify potential clinical issues, like drug interactions, and recommends next best options or identifies potential therapeutic alternatives. SmartDUR also helps reduce repetitive alerts, which can help address alert fatigue for pharmacists and can improve patient outcomes.

50 January 2024 DRUGSTORENEWS.COM

CoverMyMeds’ solutions let retailers outsource prescription fulfillment to a centralized system or establish their own central fill facility.

that tracks utilization, compares costs across cards and chooses options that balance the most affordable options for patients with the most profitable choices for pharmacies, said Kristina Crockett, VP of product management. The product works within the pharmacy management system. “Cash cards have come a long way,” she added. “Pharmacies are increasingly investing in ways to manage and track card utilization and solve reimbursement challenges.”

CoverMyMeds also offers electronic prior authorization, automated prescription claims adjustment and patient assistance programs that “seamlessly integrate into the pharmacy workflow, empowering pharmacists to prioritize care,” said Crockett.

The ROI on central fill Central fill and robotic technologies have been around for some time, but in recent years, they have benefitted from increasing adaptation and sophistication. Like many evolving technologies, they alleviate manual tasks for pharmacists, freeing up their time to interface with patients.

Fruth has been using central fill for about eight years and sees clear advantages. “We’re leveraging the benefits of a high capacity facility,” said Massey. “For all stores, 25 to 30% of maintenance medications come already ‘done’ by central fill. It takes much stress off stores. I don’t think stores can go back to not having it. If it’s down for a day, I notice the pain stores have.”

These types of technologies can also be

PHARMACY TECH AND AUTOMATION

used to dispense high-cost, low-velocity medications that increase retail holding costs. And, they can help alleviate staff shortages, said Crockett.

CoverMyMeds’ solutions let retailers outsource prescription fulfillment to a centralized system or establish their own central fill facility.

This technology continues evolving. At Knapp Inc., Brian Sullivan, principal of pharmacy solutions, North America, said the company’s oldest site is being upgraded to a whole new subsystem with fifth generation pill counters. “Central fill has been around for 25 years,” he added.

“We’re seeing new ones as well as ones with new technologies.

Some companies never went down the central fill path. Now, every time they’re putting in labor, they’re losing money. They can pull tasks out of the facility or optimize tasks within the facility by adding automation in the retail store or some combination. Projects we’re seeing now are some of the largest we’ve ever done.”

Knapp also offers the A-3000 Pharmacy System, an automated robotic storage and retrieval device that saves valuable retail pharmacy space by vertically stacking medications 12 feet high. It uses an automated induction belt and automatically scans expiration dates and lot numbers.

“Medications don’t need to occupy one facing on a shelf,” said Sullivan. “It better utilizes vertical space. Instead of searching for a stock bottle and finding five open ones of the same medication, it finds ones that are sooner to expire.”

Self-serve kiosks, lockers and drones In Europe and Canada, retail pharmacies have installed Knapp’s 24/7 self-service prescription terminals. Knapp also is working with some U.S. retailers to deploy these ATM-style kiosks. Consumers scan a smart phone bar code to retrieve orders and are asked if they wish to speak to a pharmacist. After hours, machines use telepharmacies (depending on local rules). Kiosks have refrigeration capabilities and

can dispense controlled substances.

“It’s a locked system with a video camera,” said Sullivan. “It works anywhere there are difficulties finding technicians, long lines or hours are limited.

Some states even let prescriptions be put in a locker.”

Several of these types of kiosks are being used in Idaho, which is largely rural and is probably the most liberal state when it comes to breadth of permissible pharmacy services. Nicki Chopski, Pharm.D.executive officer, Idaho State Board of Pharmacy and bureau chief of health professions, Idaho Division of Occupational and Professional licenses, said this has “created opportunities for more technical solutions to come into play. We’ve been technologically agnostic in rule making to allow for whatever technologies meet public safety requirements.”

One ATM-tyle machine has successfully been used in a grocery store for about three years, added Chopski, who “expects to see more.” She has also seen lockers and, in some tricky experiments, drones that deliver vitamins. “But there’s FAA rules and weather barriers.”

Looking ahead

Knapp offers the A-3000 Pharmacy System, an automated robotic storage and retrieval device that saves valuable retail pharmacy space by vertically stacking medications 12 feet high.

52 January 2024 DRUGSTORENEWS.COM

As in other areas of retail, pharmacy technology is growing increasingly important on many fronts. It is paramount that pharmacies keep abreast of new developments that can help them cope with the dayto-day challenges the industry continually presents.

“Over the past decade, technology has become hugely important,” said Chopski. “In days past, it wasn’t front of mind. Now, with the volume of prescriptions, there’s that many more being filled. I’ve encouraged my counterparts in other states to be open-minded about technology and thoughtful about regulating it.

It’s not something to be feared.” dsn

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HEALTH: OTC COUGH AND COLD REMEDIES

Genexa recently introduced two “clean” OTC kids’ medicines: Genexa Kids’ Multi-Symptom Cold & Flu oral suspension and Genexa Kids’ Daytime + Nighttime Cough Relief.

A Category in Chaos The future of phenylephrine, a widely used OTC decongestant, is up in the air

By Kathie Canning

U.S. adults get an average of two to four colds per year, according to the Chicago-based American Lung Association. And between 5% and 20% of Americans come down with the flu annually.

It should come as no surprise, therefore, that treatment of coughing, congestion and other symptoms associated with those respiratory ailments translates into big business. In fact, New York-based IBISWorld valued the U.S. over-the-counter cough and cold medicine manufacturing industry at $11 billion in 2022, based on revenues.

But the industry has been sailing in rough waters of late. Back in September 2023, the U.S. Food and Drug Administration’s Nonprescription Drug Advisory Committee concluded that “current scientific data do not support that the recommended dosage of orally administered phenylephrine is effective as a nasal decongestant.”

Phenylephrine replaced pseudoephedrine in hundreds of OTC cold, flu and allergy formulations after pseudoephedrine was moved behind pharmacy counters in 2006, thanks to concerns tied to methamphetamine manufacturing.

Many multi-symptom products now contain phenylephrine, noted Fraidy Maltz, B.S.,

54 January 2024 DRUGSTORENEWS.COM

“We are committed to working closely with our retail partners before, during and after FDA makes a formal decision on oral phenylephrine, to minimize any disruption to their operations and ensure consumers have continued access to trusted OTC solutions.”

— Lisa Paley, president, North America, Haleon

Pharm.D., BCAP. She is director of student engagement, developmental portfolios and co-curricular learning and associate professor of Pharmacy Practice at Touro College of Pharmacy, New York. She predicts that such products will be either reformulated without decongestants or contain pseudoephedrine (and be sold behind the pharmacy counter).

“Interestingly, allergy products such as Claritin-D, Zyrtec-D and Allegra-D all contain pseudoephedrine as the ‘D’ decongestant and were not reformulated with phenylephrine due to its questionable efficacy,” Maltz said.

“For nasal congestion symptoms related to the common cold, I usually recommend immediaterelease (30-mg) pseudoephedrine for daytime use and oxymetazoline nasal spray for nighttime use, as pseudoephedrine may cause insomnia due to its stimulant effects. It is important for consumers to be aware that all decongestants may increase blood pressure and affect other health conditions such as benign prostatic hyperplasia and narrow angle glaucoma.”

Not a Safety Issue The conclusions of FDA’s committee certainly stirred up the industry. A number of classaction lawsuits were quickly filed, targeting

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HEALTH: OTC COUGH AND COLD REMEDIES

the makers and sellers of many phenylephrine-containing products. And at least one retail drug chain, Woonsocket, R.I.-based CVS Health, announced plans to remove certain phenylephrinecontaining products from store shelves, CNN reported.

But it is important that consumers and retail drug stores understand that safety is not an issue here.

“Neither FDA nor the committee raised concerns about safety issues with the use of oral phenylephrine at the recommended dose,” FDA noted in a Sept. 14 statement. “FDA will consider the input of this advisory committee, and the evidence, before taking any action on the status of oral phenylephrine.”

Phallon Obomanu, senior director, selfcare customer strategy for Skillman, N.J.headquartered Kenvue Inc.—a spinoff of New Brunswick, N.J.-based Johnson & Johnson—also emphasized that FDA made it clear that the committee review was not about the safety of phenylephrine.

“They have not made a determination about oral phenylephrine in the monograph, nor have they advised consumers to discontinue use,” Obomanu said. “While we have not seen a shift in shopping behavior to date, we will work with the agency and our retail partners to ensure that we continue to offer a variety of science-backed options, oftentimes multi-ingredient solutions, of both OTC and behind-the-counter solutions to serve

Vicks, a licensed brand of Helen of Troy, launched the VapoPads Sinus scent humidifier accessory, made with a blend of menthol, chamomile and citrus oils to soothe discomfort from irritated sinus and throat passages.

56 January 2024 DRUGSTORENEWS.COM

the needs of our consumers.”

Kenvue’s “robust portfolio” of existing self-care products for both the allergy and cough, cold and flu categories is designed to treat several of the symptoms that consumers experience, Obomanu noted.

“The majority of our portfolio of products are multi-ingredient, which means they are specifically formulated to relieve several symptoms at once,” she pointed out. “We formulate this way because we understand that cough, fever, aches and pains, congestion, runny noses and sneezing can present oftentimes concurrently during the same sickness.”

But Maltz called for caution when it comes to recommending multi-symptom products to patients with cold or flu symptoms.

“Consumers are not always aware of hidden ingredients such as acetaminophen, which is often contained in these products,” she said. “Patients might be taking acetaminophen for fever or pain along with these products that could result in an overdose and ultimately may lead to serious adverse outcomes such as liver failure.”

It is important for consumers to have the background and education they need to choose the right ingredient or ingredients to treat their specific symptom or symptoms, Obomanu said.

For its part, Kenvue provides tools and resources related to ingredients, dosing and more through Health in Hand, a

nonprofit supported by the Consumer Healthcare Products Association) Educational Foundation.

Like Kenvue, Weybridge, Englandbased Haleon is awaiting FDA’s guidance related to oral phenylephrine’s status in the OTC monograph.

“We are committed to working closely with our retail partners before, during and after FDA makes a formal decision on oral phenylephrine to minimize any disruption to their operations and ensure consumers have continued access to trusted OTC solutions,” said Lisa Paley, president, North America for the company.

In Defense of Phenylephrine Paley maintained that the removal of oral phenylephrine’s availability “as a therapeutic choice” would limit choices and access to quality care on the part of consumers. More consumers, for example, might seek care from doctors, pharmacists or clinics.

“Consumers indicate that they may delay or forgo treatment in this case, which could lead to worse outcomes and increase demand for doctor and clinic visits in the long run,” Paley said. “If consumers shift to behind-the-counter ingredient options, it could put further pressure on pharmacy resources as well.”

In a Sept. 15 statement, Scott Melville, president and CEO of Washington-based CHPA, also weighed in on the topic.

“We encourage FDA, before making any

HEALTH: OTC COUGH AND COLD REMEDIES

regulatory determination, to be mindful of the totality of the evidence supporting this long-standing OTC ingredient, as well as the significantly negative unintended consequences associated with any potential change in oral [phenylephrine’s] regulatory status,” Melville said. “While we respect the scientific and public process that allows new science to influence health policy and regulations, we are concerned about previous clinical evidence being inappropriately dismissed and discounted.

We look forward to working with FDA in the coming days to further discuss how to best move forward in the interest of patients and consumers.”

Robitussin Medi-Soothers are medicated and made with real honey or elderberry to provide fast, powerful relief for up to four hours.

Plenty of Innovation It’s not all doom and gloom within the cough and cold remedy space, of course.

In fact, Paley is excited at the pace of innovation.

“Consumers have more choices than ever available to them to treat symptoms, across a variety of formats that align with their preferences,” she noted. “For example, last cold and flu season, we launched a new line of products: Theraflu Flu Relief Max Strength, available in different formats and flavors such as hot liquids, syrups and caplets. With this launch, we knew not only was it important to provide a science-based max-strength product to consumers, but also options that cater to consumer preferences.”

And a number of other innovative products made their debut this year. One such product, Robitussin Medi-Soother Lozenges from Haleon, targets cough sufferers.

“Unlike other cough drops, Robitussin Medi-Soothers are medicated and made with real honey or elderberry and provide fast, powerful relief for up to four hours,” Paley noted “These dual-action lozenges soothe both cough and sore throat pain.”

For its part, Atlanta-based Genexa recently introduced two “clean” OTC kids’ medicines in an organic blueberry flavor. Genexa Kids’ Multi-Symptom Cold & Flu oral suspension helps to

58 January 2024 DRUGSTORENEWS.COM

relieve symptoms such as fever, sore throat, body aches and cough and chest congestion in children ages 4 and up, the company noted. The non-drowsy formula contains 5 mg of dextromethorphan HBr (cough suppressant), 100 mg of the expectorant guaifenesin and 320 mg of acetaminophen per 10-ml dose.

Genexa Kids’ Daytime + Nighttime Cough Relief, meanwhile, is a day and night value pack for children ages six and up. It is free from artificial fillers such as FD&C red No. 40, propylene glycol and sucralose, the company said. The daytime product is a non-drowsy oral suspension with 5 mg of dextromethorphan HBr and 100 mg of guaifenesin per 5-ml dose. The nighttime product is a new oral suspension containing 15 mg of dextromethorphan HBr and 2 mg of chlorpheniramine maleate per 10-ml dose for up to eight hours of effective cough relief; it also temporarily relieves sneezing and runny nose.

“Parents who are committed to clean products will have effective and clean medicine options to turn to this winter,” said David Johnson and Max Spielberg, Genexa co-founders, in a press release issued at the time of launch.

And Vicks, a licensed brand of

Marlborough, Mass.-based Helen of Troy, launched a new formula for its VapoPad scent humidifier accessory, VapoPads Sinus, this fall. The product is made with a blend of menthol, chamomile and citrus oils to soothe discomfort from irritated sinus and throat passages, providing up to eight hours of soothing relief, the company noted. Designed to work with most Vicks humidifiers and vaporizers, Vicks VapoPads Sinus also pairs with the Vicks Sinus Inhaler for targeted, natural symptomatic relief from congestion and irritation.

“One in seven adults suffers from diagnosed sinus issues—and this doesn’t even include those undiagnosed sufferers,” said Megan Dristilaris, director of marketing, Beauty & Wellness.

“It’s our hope that VapoPads Sinus will enhance their inhaler and humidification experience just in time for the upcoming cold and flu season.”

Meanwhile, On/Go, part of Miami Beach, Fla.-based Intrivo, debuted its Sniffles product in November. The product is said to be an “all-in-one solution” that combines $75 worth of cough/cold/flu remedies, medications and devices, as well as telehealth services, for $39. dsn

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Helping Americans to breathe more, snore less and sleep better 100% recyclable packaging

Exhibiting at ECRM *S. Braham, The Royal Victorian Eye and Ear Hospital, 2003.

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ALWAYS READ THE LABEL AND FOLLOW INSTRUCTIONS FOR USE.

REX AWARDS 2024: NATURAL PRODUCTS

REX Awards 2024 – Natural Products

This year’s Retail Excellence Awards recognize standout companies offering natural products

By Sandy Levy

Consumers’ interest in natural products has been growing over the past decade, but with the pandemic heightening their awareness about the importance of staying healthy, their interest in natural products has exploded.

Consumers are increasingly reaching for products that are natural, and they are looking closely at their product choices, especially when it comes to boosting their immune system, hydrating, improving their sleep, caring for their skin and soothing their children when they are sick.

Drug Store News’ REX Awards - Natural Products recognizes those manufacturers who have made a difference in their respective industries, be it with innovative products, promotions or merchandising. These are companies that have gone above and beyond assisting their retail partners as they seek to create a point of differentiation between themselves and other merchants.

Jean Pierre Cosmetics Jean Pierre Cosmetics is a skin care company specializing in beauty and personal care products for everyday use. Developed in New York City in 2003, Jean Pierre Cosmetics is known for using formulations that enhance products to meet evolving skincare and beauty needs. Brands include Skip the Spa, WeWell and Spa Studio,

60 January 2024 DRUGSTORENEWS.COM

among others.

The line of fresh and gently fragranced skin care products includes cleansing and moisturizing wipes, make-up remover products and hydrating masks for different skin types. The products are all tested and approved and the company’s laboratories surpass in research and product development.

Launched in 2008, Blum Naturals was created to meet the need for natural skin care Blum Naturals uses with organic ingredients. The line of products was organic oils and natural designed using organic oils and natural extracts extracts to target different skin types to target the specific needs of different skin types and complexions. and complexions. Facial towelettes are made with organic ingredients, earning an NSF/ANSI 305 certification for personal care products, and are biodegradable, solidifying the company’s commitment to transparency.

The formulations are pH balanced, hypoallergenic and alcohol-free, using only the finest quality ingredients, such as rare flowers, herbs and natural plant extracts.

Both Jean Pierre Cosmetics and Blum Naturals products are sold at regional and nationwide retailers including food and drug stores, mass market chains and specialty retail stores. Products are manufactured to the highest standards of quality, safety and customer satisfaction.

REX AWARDS 2024: NATURAL PRODUCTS

Zarbee’s portfolio expands with the introductions of its Children’s Gentle Bedtime line and Children’s Calm Gummies products.

Kenvue Kenvue’s Zarbee’s, based in Skillman, N.J., was founded in 2008 by Dr. Zak Zarbock, a pediatrician and father who was inspired to create wholesome and effective alternatives to traditional over the counter medicines. His first product was a honey-based kids’ cough syrup made with vitamin C and zinc, that is free of artificial flavors and artificial sugars.

“Today, Zarbee’s is the No.1 pediatricianrecommended cough syrup, immune and sleep support brand for kids 12 and under and has grown into a broad-based health and wellness brand,” said Katiria Butler, commercial lead at Zarbee’s.

This year, the brand expanded its bedtime portfolio with the launch of Children’s Gentle Bedtime—a line of melatonin-free nighttime solutions to help little ones unwind and relax before bed. The line includes a gummy and syrup offering made with natural honey and calming chamomile, and a bedtime spray made with lavender and chamomile.

The brand also introduced Children’s Calm Gummies, its first product in emotional health support that uses a blend of magnesium, chamomile and vitamin B6. (These statements have not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure or prevent any disease.)

“These products provide gentle support to help kids relax and unwind, day or night,” Butler said.

Liquid I.V. Based in El Segundo, Calif., Liquid I.V. was founded in Los Angeles in 2012. The company was acquired

by Unilever in September 2020.

“Liquid I.V. is a hydration company with a portfolio of great-tasting, non-GMO powdered hydration mixes that are designed to hydrate you more effectively and efficiently than water alone,” said Marc Adler, director of sales, drug at Liquid I.V. “Our products have three

times the electrolytes of the leading sports drink and eight vitamins and nutrients for faster hydration and everyday wellness with 100% daily value of essential B vitamins: B3, B5, B6 and B12.”

Adler went on to say that the company takes a hydration-first approach to 360-degree wellness. “We offer line extensions that deliver hydration and additional benefits such as immune support, energy, sleep and gut health,” he said.

The brand’s most innovative launch to date is Hydration Multiplier Sugar-Free, a science-backed solution with a proprietary amino acidallulose blend.

Adler explained that the formulation took over two years to formulate by a team of scientists and was clinically studied to improve hydration in the absence of sugar when combined Liquid I.V. contains with amino acids and electrolytes. eight vitamins and Hydration Multiplier Sugar-Free is available nutrients, as well as a 100% daily value of in lemon lime, green grape and white peach.

Lastly, Adler said that as a purpose-driven essential B vitamins. brand, giving back is at the core of Liquid I.V.’s DNA. “To date we’ve donated over 48 million servings to people in need around the globe. We are committed to donating a total of 150 million servings by 2032,” Adler said.

Mason Vitamins Based in Miami Lakes, Fla., Mason Vitamins has one of the largest health and wellness offerings with a selection of over 350 products under the Mason Natural brand.

“Our valued clients worldwide include community pharmacies, mass market retailers, food stores, e-commerce and healthcare facilities,” said Katherine Rizcala, project management analyst. “One of our latest innovative products is Renal Multivitamin, a customized formulation created through our pharmacists’ forum relationships for dialysis patients to support kidney

Mason Vitamins offers niche supplements for customers seeking renal and neurologic support.

62 January 2024 DRUGSTORENEWS.COM

Never. Stop. Smiling.

At Edgewell, we strive to add joy to the everyday by infusing the perfect blend of passion, innovation and individuality into all of our personal care brands. We’re committed making extraordinary products that are not only fun to use, but also better for both our customers and our planet.

We make useful things joyful.

REX AWARDS 2024: NATURAL PRODUCTS

function and general health. Pharmacists and other healthcare professionals have been in our company’s core values for over 55 years. This unique multivitamin allows us an opportunity to break into a niche health segment within the vitamin category, while also providing an affordable option for consumers and patients within this specialty group.”

“Additionally, with the global nerve and brain health supplements in the market on the rise, Mason brings another unique innovative product into the mix by launching Neuro Complex with Alpha Lipoic Acid formula, which focuses on providing nutritional support for nerve and brain function,” the company said.

“Formulated with B vitamins that are essential for the development of the brain and nerves, it also promotes cognitive function. The bonus of the added Alpha Lipoic Acid promotes healthy blood flow and may help protect nerve and brain tissue,” Rizcala noted.

The Mentholatum Co. The Mentholatum Co., based in Orchard Park, N.Y., is a global health and wellness powerhouse with a rich history dating back to its establishment in 1889 in Wichita, Kan. Originally a small purveyor of soaps and toiletries, The Mentholatum Co. has evolved into a renowned business focused on delivering quality and value. In 1988, it joined with global Rohto Pharmaceutical Co., combining forces to drive advancements in health and wellness.

Allison Sanders, head of marketing for Rohto Cooling Eye Drops USA, described one of their latest products, Rohto Dual Light Relief, as one that stands out as an eye drop designed to soothe eyes from irritation caused by the sun and digital eye strain. “This innovative solution features dual lubricants for enhanced hydration, provides relief for five dry eye symptoms and employs HydroCorneal Protection Technology to protect

Mentholatum All-Natural Medicated Vapor Rub is a 100% plant-based topical cough suppressant. Rohto Dual Light Relief drops are designed to soothe eyes from irritation caused by the sun and digital eye strain.

64 January 2024 DRUGSTORENEWS.COM

corneal cells from UV damage,” Sanders said.

Adding to their repertoire is Mentholatum All-Natural Medicated Vapor Rub, an FDA-accepted topical cough suppressant. This eco-friendly marvel boasts 100% plantbased ingredients, a soothing minty lavender scent and is petrolatum-free.

As Mentholatum celebrates OXY Acne Care’s 50th anniversary in June 2024, they are unveiling two products tailored for teen skin. The dermatologist-recommended OXY Moisturizing Anti-Acne Body Wash (9.0 fl. oz.) offers a comprehensive solution, cleansing, clearing and hydrating acne-prone skin. Its unique formula includes Salicylic Acid, Chamomile, Vitamin E and Hyaluronic Acid. Complementing this is the Fragrance-Free OXY Moisturizing Sensitive Skin Acne Cleansing Pads (90 ct.), featuring a patented skin conditioner with oat technology and a gentle level of clinically proven Salicylic Acid to cleanse, moisturize and treat acne-prone skin.

“For customers seeking groundbreaking products that combine science, innovation and consumer-driven solutions, The Mentholatum Co. has you covered for health and wellness,” Sanders said.

Pharmavite Pharmavite is a pioneer in the health and wellness industry, earning the trust of consumers, healthcare professionals and retailers by developing vitamin and supplement solutions backed by science that adhere to strict manufacturing practices for over 50 years. Through its Nature Made, Nature Made Wellblends, EQUELLE, MegaFood, Nurish by Nature Made and Uqora brands, Pharmavite is dedicated to helping people live healthier, more vital lives.

Based in West Hills, Calif., Pharmavite is a subsidiary of Otsuka Pharmaceutical. In 2023, Pharmavite recently Nature Made launched a variety launched its Nature Made of new innovations. Within the Magnesium Complex growing magnesium segment, Capsules with D3 & Zinc to support healthy Nature Made launched Magnesium immune systems.

Complex Capsules with D3 & Zinc, Magnesium L-Threonate Capsules with Vitamins C & D3 and more recently, High Absorption Magnesium Glycinate Gummies. Nature Made Wellblends launched Calm Mind & Body Gummies, a three-in-one Blend with clinically studied Ashwagandha, Magnesium and GABA to reduce stress and relax the mind and body. dsn

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LAST WORD

Five Crucial Retail Strategies for 2024 These five strategies could mean success for retailers in the new year

By David Orgel

Retail success in 2024 will rely on being proactive. Leaders will need to identify and move on winning strategies in areas such as health and wellness, new technologies, customer experiences and value initiatives.

Here are five key strategies for them to consider in the new year.

Identifying Unique Health Initiatives: There has never been a better time for food and drug retailers to experiment with new and promising health initiatives that can differentiate their businesses and benefit customers. A case in point is food as medicine programs. Kroger is a retail leader in this area, and its healthcare division, Kroger Health, recently announced a collaboration to offer medically tailored meals. This will be the first time Kroger Health is offering evidence-based, registered dietitian-approved meals that will offer nutrition intervention for people who are living with various health conditions.

Choosing Investments in Emerging Technology: Food and drug retailers will need to pick their spots on which aspects of artificial intelligence and other emerging technologies can most lift their businesses. AI applications are already being used at retail in areas ranging from operations to customer service. In the past year, generative AI has been a hot topic in the news. Walmart and Amazon are well-positioned for highly positive financial impacts from AI, machine learning and generative AI through 2029, according to a new Retail AI Readiness Index from analyst firm IHL Group.

Other well-positioned retailers include CVS, Costco, Kroger and Target, according to IHL. Navigating New Economic Hurdles: The good news is that inflation has been easing.

The bad news is that many consumers have been feeling increasingly challenged by months and years of cumulative economic pressures. Retailers need to recognize the impact on shoppers and

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66 January 2024 DRUGSTORENEWS.COM

David Orgel is an award-winning business journalist, industry expert and speaker. He is the principal of David Orgel Consulting.

From identifying unique health strategies to enhancing store experiences, retailers have opportunities to make significant progress in the new year.

emphasize core value strategies to navigate this period. Kroger’s Rodney McMullen, chairman and CEO, recently outlined how the retailer will be following this play book. “As consumer spending tightens, we are focused on providing customers with exceptional value,” he said. “By maintaining our long-term commitment to lower prices, personalized promotions and rewards, we are growing households and increasing loyalty, positioning Kroger for sustainable future growth.”

Embracing Experiential Spaces: The e-commerce era hasn’t reduced the need for unique in-store experiences. Far from it. Food and drug retailers can showcase signature aspects of their businesses and communities at a time when shoppers are looking for unique experiences.

A new grocery store, called FreshTake, is set to open in Augusta, Ga., in the summer of 2024 with an array of shopping and leisure activities.

This store is situated in the same town that hosts the annual Masters professional golf tournament and will include a five-hole putting green. That approach isn’t for every retailer, but it may inspire other out-of-the-box ideas.

Building on Momentum for Giving: The holiday period is always packed with an unmatched array of retailer charitable programs to support communities and causes. This past year it seemed retailers outperformed on these efforts, including programs from CVS Health Foundation, Rite Aid and Meijer. There are opportunities for all retailers to keep this going throughout the year, but also to relay many stories about how efforts in areas ranging from food insecurity to mental health are making a difference. Robust storytelling will drive momentum for future efforts.

It’s hard to predict precisely which retailers will ace the strategies outlined here. But it’s safe to say it will be those that figure out how to best address these broad trends and needs for their own customer bases. dsn

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edge of finding new ways for quality improvement. We chose The Compliance Team because they are forward thinking in their approach to patient care.”

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