|
Editor's Note: Below is a brief excerpt from a complimentary research note written by our Consumables analysts Howard Penney and Daniel Biolsi. We are pleased to announce our new Sector Pro Product Consumables Pro. |
Since the rollout of the COVID-19 vaccines pharmacies have seen a surge in foot traffic. The delta variant drove a recent spike in traffic in August as seen in the following chart.
The spread of the omicron variant has driven another surge in demand for vaccines and COVID-19 tests. Albertsons said the COVID-19 vaccines also benefited gross margins.
Demand has also risen for health and wellness products in pharmacies. Perrigo is positioned to benefit from the easy cold and flu season last year as well as greater traffic to grocery and pharmacy aisles.
About 2/3 of Perrigo’s sales are store brands that benefit from the side-by-side comparison on a retailer’s shelf.
