Pharmacy sales in the United States are positive with growth expected to increase 20% 2005-2008 according to data published by benefit management companies and a market intelligence firm. The rate of increase is lower than it has been in the past five years. Trends negatively impacting the market include consolidation, new store openings, increased mail order, drug importation, and the growth of generic pharmaceuticals. Further, if medicare covers prescription drugs at lower reimbursement levels, profitability of the industry could be adversely affected

Given that GDP and retail sales show moderate growth and that pharmacy sales have high growth potential, Walgreen represents a good investment opportunity. Walgreen is the top drugstore chain in the United States and is will well prepared to come out ahead in an intensely competitive market to capture a huge portion of the growing market.

Works Cited

GDP Data...

Retrieved November 6, 2005 at http://www.cbo.gov/showdoc.cfm?index=5773&sequence=1&from=0
Survey of Professional Forecasters data (overseen by Philidelphia FRB). Retrieved November 6, 2005 at http://www.phil.frb.org/econ/spf/index.html

Wachovia Bank data. Retrieved November 6, 2005 at http://www.wachovia.com/ws/econ/view/0,2705,00.pdf

Retail Sales Data

Blue Chip Indicators. Retrieved November 6, 2005 at http://www.aspenpublishers.com/PDF/SS01934600.pdf#search='Blue%20Chip%20economic%20indicators'

Financial Forecast Center. Retrieved November 6, 2005 at http://www.forecasts.org/sales.htm

Livingston Survey. Retrieved November 6, 2005 at http://www.phil.frb.org/files/liv/livjun05.pdf

Pharmacy Sales

Form 10-K for RITE AID CORP (2005, April 29). Retrieved November 6, 2005 at http://biz.yahoo.com/e/050429/rad10-k.html