Retailers are acutely in tune with the current difficult economic times, which are reflected woefully in lower sales figures. That awareness is reflected, to the benefit of consumers, in the lowering of prescription drug prices at WalMart, with stores like Wegmans following suit.
Whether this is purely altruism is a matter of fruitless discussion. It could be that these moves are borne out of competitiveness in an increasingly discerning market, but so what? It's a boon for consumers, and the stores deserve credit for providing it.
The latest news: Wegmans customers with a Shoppers Club card will discover lower prices on 389 generic prescription medications at the chain's pharmacies. Certain generic drugs will be reduced, with 30-day prescriptions for $4 and 90-day supplies at $10. Wegmans had already started offering select generics for $11.99 for 90-day supply back in 2006, shortly after WalMart started selling generics at $4 for a 30-day supply.
Moreover, Wegmans also is adding free generic oral antibiotics during the cold and flu season. By doing so, the Rochester-based company has raised the stakes. This response can only be good for cash-strapped consumers. Competition is good.
WalMart, in making its initial offers, may have been feeling the pinch of accusations that the company was not providing health insurance to its own employees. Lowering drug prices did boost the company's public image, and competitive forces encourage other companies to match offers. The loss of a customer would be potentially much greater than the profit margin companies would absorb on the medicine.
From an economic angle, these companies do not want to lose shoppers because, once that happens, they tend to be lost indefinitely. The grocery basket contains a variety of products, some of which are high-margin and others that are low margin -- for example, store brands, which are more profitable than nationally advertised brands. A shift in customer loyalty would mean a loss of money on private-label brands for one store and a gain for the other; the cost to companies from lowering generic drug prices could be minimal but the potential rewards much greater.
That said, there's also another element that can't simply be dismissed. These stores exist within our communities, and share the community's pain. Extending help on such vital commodities as medicines doesn't just make economic sense, it's an act of good corporate citizenship as well. These companies are enhancing their image in the minds of consumers, but they're also providing some real help in tough times. Expect consumers to be more than willing to accept the offer.
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