Walgreen says sales at stores open at least a year slipped in January, but total sales grew

Walgreen says key sales figure fell in January

DEERFIELD, Ill. — Drugstore chain Walgreen Co. said Wednesday that a key sales measure fell in January, although the company’s total sales rose as it continued to open and buy more stores.

Sales at Walgreen’s stores that have been open at least a year fell 1.1 percent for January. Pharmacy revenue at those stores fell 1.2 percent; sales of non-pharmacy items like food, drinks and cosmetics fell 1 percent.

The change in sales at stores open at least a year is considered an important indicator of a retailer’s health because it excludes the impact of stores that open or close during the year.

Analysts polled by Thomson Reuters expected the figure to rise 2.2 percent — including a 3.2 percent increase in the figure for pharmacy sales and a 0.1 percent drop in the non-pharmacy or “front end” figure.

The company said calendar shifts hurt its sales: January 2010 had one more Sunday and one less Thursday than January 2009, and business tends to be stronger on Thursdays. Walgreen also said new launches of low-cost generic drugs hurt its revenue. Generic drugs are more profitable for the company, however.

At stores open at least a year, prescriptions grew 2.7 percent due to demand for swine flu shots, and because more patients filled 90-day prescriptions instead of 30-day prescriptions.

For all Walgreen stores, total sales grew 2.7 percent to $5.36 billion from $5.22 billion. The company said pharmacy revenue grew 1.6 percent and front end sales rose 3.9 percent.

The company had 7,162 stores as of Jan. 31. The results from stores open at least one year exclude 503 stores Walgreen opened or acquired in 2009. The company also has 503 work site health centers, home care facilities and other pharmacies.

In afternoon trading, Walgreen shares fell $2.20, or 6 percent, to $34.58.