Longs Drug May Same-Store Sales Down

Longs Drug Stores has reported that same-store sales decreased 1.4% for May 2008. Total retail drug store sales were $374 million for May 2008, a 0.2% increase when compared to May 2007.

For the 17 weeks ended May 29, 2008, total retail drug store sales were $1.59 billion, a 2.3% increase, compared to the same period of 2007. Same-store sales increased 0.4% for the 17 weeks ended May 29, 2008.

Longs estimated that preliminary May pharmacy same-store sales were unfavorably impacted by approximately 275 to 300 basis points as a result of recent generic introductions being substituted for higher-priced brand name drugs. In addition, a reduction in cold, flu and allergy prescriptions, primarily due to the impact of the switch of the prescription allergy medicine Zyrtec to over-the-counter status, had an unfavorable impact of approximately 200 to 225 basis points on pharmacy same-store sales, the company said.

Longs estimated that preliminary May pharmacy same-store sales were also unfavorably impacted by approximately 125 to 150 basis points as a result of the calendar shift in Memorial Day, which fell in the company’s fiscal month of May in 2008 versus the fiscal month of June in 2007.