Region:
USA
State:
Minnesota
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REACTION MIXED TO DRUG PROGRAM
Date: 17-Nov-2006
Wal-Mart's competition wasted no time piggybacking on the launch of the retail giant's $4 generic prescription drug program in Massachusetts and 10 other states yesterday.
Natick-based BJ's Wholesale Club said it will now charge only $4 for select generic medications at its 10 pharmacies in the state, including at the Framingham location.
"Our philosophy is we're a low-cost wholesaler to begin with and we brought the same mentality and philosophy to the pharmacy," said Chris Cella, BJ's vice president of pharmacy operations.
BJ's, which operates 168 membership warehouse clubs in 16 states, announced its discount program in Massachusetts shortly after Wal-Mart made the move yesterday to expand its program to a total of 38 states.
Cella said BJ's program covers 292 generic drugs, compared to 331 offered for $4 by Wal-Mart. The price is for up to a 30-day supply.
BJ's had previously lowered prices of certain generics at pharmacy locations in eight other states -- Delaware, Florida, Georgia, Maryland, New Hampshire, New Jersey, New York and Virginia -- also in response to Wal-Mart's $4 program.
"It's been accepted rather well," Cella said yesterday during an interview at the Framingham BJ's pharmacy.
Joe Musella, a Framingham resident shopping at the local BJ's yesterday, said he has regularly filled his prescriptions at BJ's because of its low prices overall, on both generic and brand-name drugs.
"I guess it's good but it doesn't cover everything," Musella said of the $4 discount programs.
Analysts said the main benefit for Wal-Mart was in drawing more shoppers into its stores who may come for prescriptions and then stay to buy items in other departments.
BJ's sent such a signal yesterday. Cella's statement in a press release said, "Members are encouraged to drop off their prescriptions with us and then shop our club for the rest of their needs to save them valuable time and money."
Although BJ's is a membership-based business, the chain's pharmacies are open to shoppers in general.
The other BJ's pharmacies in Massachusetts are at clubs in Attleboro, Chicopee, Danvers, Dedham, Leominster, Plymouth, Stoneham, Stoughton and Taunton. BJ's has a total of 18 clubs in Massachusetts but not all locations have pharmacies.
Reaction from other Wal-Mart competitors has been mixed.
After the earlier expansions, number two discounter Target Corp. matched the discounts state-by-state.
Other chains including Walgreen Co. said they would not change prices that they contend are already competitive, especially for people with insurance who only foot the cost of a co-pay.
Kmart, which has pharmacies at stores in Fairhaven, Fitchburg and Holyoke, yesterday issued a news release touting its discount drug program, which offers a 90-day supply of certain generic prescriptions for $15 -- or $5 per month. The program started in May, four months before Wal-Mart launched its program.
(Associated Press material was used in this report. Greg Turner can be reached at gturner@cnc.com or 508-626-3909.)
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