Kerr Drugs Out to Lure Elderly: Stores Will Offer Rebates on Some Items, 10 Percent Off Others, to Those at Least 60
By Sue Stock, The News & Observer, Raleigh, N.C.
Jun. 26–Savvy seniors are key customers for pharmacies.
So it’s no surprise that Raleigh-based Kerr Drug is rolling out two programs aimed at getting more seniors through the doors of its stores in the Carolinas.
Beginning Wednesday, Kerr will launch a cash-back rebate program that will give refunds on products that are typically not covered by insurance.
That includes such items as Depends, Ensure and No-Rinse cleansing products. But the list of qualifying items also includes things that aren’t specific to seniors, such as Huggies, Pull-Ups and GoodNites diapers.
And,starting July 1, Kerr will offer a 10 percent senior discount on many items.
Kerr spokeswoman Diane Eliezer said the programs are aimed at building loyalty and return business. “No matter what kind of household you are, you’ve got to watch your expenses because it adds up,” she said.
Kerr’s new programs are clearly designed to help the chain compete in the ever-crowded drugstore industry, said Mary Ann Wagner, senior vice president of policy and pharmacy regulatory affairs for the National Association of Chain Drug Stores.
“The industry has always been competitive,” she said. “That’s good because people then compete on service, which is a much better way to compete.”
Kerr is facing more competition than ever, with customers moving toward alternatives including grocery stores, discounters such as Wal-Mart and warehouse clubs such as Costco and Sam’s Club.
From 1995 to 2005, prescription sales at drugstores rose 45.9 percent to $2.3 billion. But supermarket prescription sales more than doubled to $469 million.
Other pharmacy chains including Eckerd, Walgreens and CVS have their own aggressive rebate plans to help build customer loyalty.
And sticking with the same pharmacist can be especially crucial for seniors, Wagner said.
“They definitely do take more drugs, and many times they see several physicians,” she said, “so it’s important that one pharmacist has all of their prescriptions in one place to be able to spot potential complications.”
Kerr’s new rebate program is a partnership with Milwaukee-based Caregivers Marketplace, which works with manufacturers to give the cash rebates ranging from less than $1 to $20 per product.
Beginning Wednesday, customers will be able to pick up a booklet about the program’s rules. There will also be in-store displays and special shelf labels on the qualifying products.
Under the new discount program that begins next week, people age 60 or older will be given a 10 percent discount on their purchases at Kerr Drug on Tuesdays.
That excludes prescription medicines, any sale price merchandise, alcohol, bread, cigarettes, dairy products, lottery tickets, gift cards, phone cards, magazines, newspapers and baby diapers and formula. Personal hygiene products and over-the-counter medicines will qualify for the discount, as long as they are not on sale that week.
In order to qualify, seniors must bring either a senior discount card from another retailer or a valid ID. AARP cards don’t count.
Staff writer Sue Stock can be reached at 829-4649 or sue.stock@newsobserver.com.
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