In 2005, over 3.4 billion prescriptions were filled—a jump of 59% since 1995. This good news comes from the National Association of Chain Drug Stores Foundation's recently released 2006 Chain Pharmacy Industry Profile.

For the first time, the report includes information on how prescriptions are ordered and picked up. Eight percent of new prescriptions and 5% of refill prescriptions are picked up at the drive-through window. While most new prescriptions (29%) are dropped off at the pharmacy, most refill prescriptions are called in using an automated phone system (26%). Eight percent of refill prescriptions were ordered on-line.

Another new feature in this year's report is a profile of the pharmacy consumer. Affluent male homeowners are most likely to use on-line/ mail pharmacies. Employed individuals fill their prescriptions at traditional chains most often, while those claiming to be in "excellent health" are more likely to fill their prescriptions at mass-merchandisers.

In terms of spending, brands account for the majority of the top 10 products. Of the top 20 products by spending in 2005, only one was a generic drug. All of the top 10 products by spending for both community retail pharmacy and mail-order pharmacy were brands.

The report also unveiled top chain pharmacy companies by pharmacy sales and by number of pharmacies in 2005. Walgreens took first place as the top chain by pharmacy sales, followed by CVS. Wal-Mart took third place. Rite Aid was fourth, and Albertson's was fifth.

CVS was No. 1 by number of pharmacies (5,370), followed by Walgreens at 4,953 pharmacies, and Rite Aid at third place with 3,323 pharmacies. Next in line were Wal-Mart with 3,289 pharmacies and Albertson's with 1,945 units.

The following findings give the retail chain industry reason to be upbeat:

• Chain pharmacy represents the largest component of pharmacy practice, comprising nearly 22,000 traditional chain drugstores and close to an additional 18,000 pharmacies within supermarkets and mass-merchandising stores.
• Between 2004 and 2005, retail sales in traditional drugstores rose 4.1%, with prescription sales rising even faster. Overall, the retail prescription market topped $230 billion in 2005. Chain pharmacies filled 63% of the dollar volume of retail prescriptions.
• Of all prescriptions dispensed last year, 41% were filled at chain pharmacies, 18.2% at independent drugstores, 19.1% through mail order, 12% at supermarkets, and 9.8% at mass-merchandisers.
• The chain drug industry employs more than 120,000 pharmacists and over 160,000 technicians. Eighty-three percent of the chain stores today are in urban areas, while 64.5% of independents are located in urban areas. The states with the largest number of chain drugstores are California, Florida, New York, Pennsylvania, and Texas.
• California has the largest number of licensed pharmacists, followed by Texas, Florida, New York, and Pennsylvania. Each of these states also has one of the highest numbers of pharmacists working in chain pharmacies.
• California has the largest number of licensed pharmacists working in independent drugstores. New York takes second place.
• The average cash price for a prescription drug in 2005 was $72.71, up from $62.46 in 2004. The average price for a prescription paid for by a third party was $74.72, up from $63.16 in 2004.
• The highest average cash price for a prescription drug in 2005 was $81.16 (District of Columbia), and the lowest average cash price was $34.70 (Arkansas). The highest average price for a prescription paid by a third-party program was $93.38 (District of Columbia), and the lowest was $62.22 (Alabama).
• Prescriptions account for 70.7% of all sales at chain drugstores. Other categories include over-the-counter items, 6.7%; general merchandise, 2.5%; toiletries, 4.9%; cosmetics, 2.5%; food, 5.6%; non-edible consumables, 3.6%; packaged alcohol, 1.7%; vitamins/minerals, 1.3%; and photo equipment/supplies, 0.4%.
• Per capita sales in all drugstores increased about 82% from 1995 to 2005—a rate of 6.2% per year.
• As of June 2006, there were 276 main home pages affiliated with chain pharmacy companies. Sixty-six of these home pages had an on-line pharmacy that had the capability of refilling prescriptions.
• Twelve pharmacy Web sites are currently certified under the Verified Internet Pharmacy Practice Sites (VIPPS) program.
• Customers mentioned convenience/location (66%) as the top reason they shop at a particular retail pharmacy. Price was named by 22% of shoppers, familiarity with pharmacy/employees/owners was given by 11%; insurance coverage was cited by 9%, and customer service was named by 7% of shoppers.
• The percentage of prescriptions paid for with cash has dropped dramatically, from 63% in 1990 to just above 11% in 2005. In 2004, the percentage of prescriptions paid for with cash was 13%.