Kerr, a high-profile regional drugstore chain, adds only a small percentage to Walgreen’s revenues. (See the table below.) However, the deal boosts Walgreen’s North Carolina presence, where CVS is much larger. Kerr is also a good fit with Walgreen’s Well Experience strategy.
Kerr’s owners understand industry consolidation’s key rule: Get big, get focused, or get out. Winning in the retail pharmacy industry requires scale or differentiation. Otherwise, cash out gracefully.
Kerr is the third-largest regional drugstore chain. The table below extracts the 10 largest regional drugstore chains from the Drug Store News Top 50 pharmacy list. According to today’s press release, Kerr Drug's retail drugstores and specialty pharmacy business had total sales of $381 million in its 2012 fiscal year.
Kerr has industry-leading patient care services, including Medication Therapy Management (MTM) and refill programs. In March, Outcomes MTM, a medication therapy management delivery system, named Kerr Drug to be the “top regional pharmacy chain.” See OutcomesMTM names top pharmacy-based MTM centers across the country.
The top national chain, according to Outcomes MTM? Walgreens.
Hey, Walgreens gonna get you, too.