1、 2023 Information Resources Inc.(IRI).Confidential and proprietary.Q4 2022March 2023Drug Channel LandscapeRetail Thought Leadership2Flu season sees consumers looking to the drug channel for remedies even as inflation concerns dampen overall consumer spending.Executive SummaryDrug dollar sales declin

2、ed in Q4 2022 by 2.3%as the channel lapped strong YA performance(15%in Q4 2021).Drug lost share of Total U.S.MULOC as the market grew(8.6%)in Q4 2022.The COVID-19 pandemic has led to an increased focus on health and wellness among consumers and changed the way health care is accessed,e.g.,remote hea

3、lth care,importance of pharmacists,retailer clinical trial services,online Rx subscription services and greater personalization by drug retailers.Seniors(65+years)are a primary cohort for the drug channel,contributing 50%of drug sales growth in 2022.Drug softness in Q4 is led by a sales decline in t

4、he health department(-4.7%).COVID-19 test kit sales contributed significantly to Q4 2021 growth,however,they began to be offered free in early 2022,which was a leading driver of the decline in health dept.sales in the drug channel.It offset the tailwinds from increasing sales in upper respiratory tr

5、eatment(cough/cold/flu)recently.Average pricing(price per unit)continues to rise but at a slower rate in the drug channel at 6.6%in Q4 2022,whereas it continues to accelerate in MULOC(12.8%in Q4 2022),which is primarily driven by rising food inflation.Key TrendsOpportunitiesAs traditional frontline

6、primary care facilities struggle with tight budgets,consumers have found more convenience and better value in retail health care.The amount of health care business conducted through retail outlets is expected to double in 2023,benefitting drug as well as other retail players.Continue to prioritize a