Giant Eagle yesterday began testing a new prescription drug program in its Columbus and Toledo, Ohio, markets that promises to fill -- for free -- loyalty card holders' prescriptions for 11 generic drugs commonly taken during the cold and flu season.
The program, which eventually could roll out to the rest of the chain, marks the O'Hara grocer's entry into what has become a industrywide trend of cutting prescription drug costs.
Pharmacies have long helped retailers drive traffic through their stores and build loyalty among customers, but Wal-Mart recently upped the ante by aggressively going after pharmacy customers by offering a month's supply of about 300 generic drugs for $4 in some Florida stores. The program is being expanded to 14 additional states. Pennsylvania is not one of them.
While industry observers debated the impact of Wal-Mart's move, causing shares of big pharmacy chains to slip amid concerns their customers may be lured away, the giant retailer's competitors began reacting.
Target has said it would match Wal-Mart's prices, while Wegmans Food Markets, the Rochester, N.Y.-based grocery chain, on Tuesday unveiled a program offering a 90-day supply of about 200 drugs taken for chronic conditions for $11.99.
Giant Eagle's program takes a different approach. It will let customers who carry its loyalty cards to get a free supply of up to 14 days worth of drugs commonly prescribed during the winter. The list includes such drugs as Amoxicillin, Ampicillin, Erythromycin and Robitussin AC/DAC.
At the moment, the program is only available to customers at 15 Columbus-area stores and two Toledo locations. Unlike in Cleveland and Pittsburgh, Giant Eagle is not the biggest supermarket in either place. The program could get the attention of shoppers who haven't yet given it a try.
Just how far Giant Eagle goes with the test depends on how customers react. "Should this prove successful, we would look into expanding it into other markets," said Giant Eagle spokesman Dan Donovan.
Although some have argued that the generic drugs included in some of the programs are older medicines that were already relatively inexpensive, other observers hold out hope the competition could at least make a dent in prescription drug prices.