Manufacturers are producing more flu shots than ever this year, with 166 million doses available, compared to 157 million doses last year. But retailers, physicians' offices and others who dispense the vaccine face an uphill battle. About 41% of U.S. adults and nearly half of children ages six months to 17 years got flu shots last year. That led retailers, which accounted for about 20% of all flu shots last season, to institute price cuts and heavy promotions by December to unload supply.
Now, pharmacies and supermarkets are trying to attract customers with offers of coupon booklets and grocery discounts along with their shots. CVS Caremark Corp., with more than 7,200 stores, stopped requiring reservations, and the change has already prompted an increase in flu shots administered year-over-year. The drugstore chain also has "You Vs Flu" signs posted inside and outside stores, along the aisles and at checkout.
"You can't walk into a CVS and not know that we're offering flu shots," said Mike DeAngelis, a CVS spokesman.
Two years ago, people at risk of flu complications and worried parents stood in line for hours to get vaccine for their children during the H1N1 flu pandemic. But this year, there's no pandemic. "A lot of things that go into generating demand are beyond our control," said Kristine Sheedy, a communications expert with the federal Centers for Disease Control and Prevention.
Moreover, the strains that this year's flu vaccine offers protection against are the same as those of last year's vaccine—making it harder to convince people to get another shot. The CDC recommends anyone over six months old get a flu shot, and says the vaccine's effectiveness wears off so those who got shots last year still need them this year.
It's too soon to determine what the season's demand for shots will be. The flu season normally runs from late fall to early spring, but most people who get vaccinated for the virus do so before Thanksgiving. "Demand will largely be tied to the severity of the illness this season," said Steve Pellito, national director of wellness for Maxim Health Systems LLC, which offers 20,000 venues where people can get flu shots.
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Retail pharmacies have only in recent years been allowed by individual states to offer flu shots. Big drugstore chains like Walgreen Co. view flu shots as a platform to introduce their broader range of health-care services like diabetes screening or in-store clinics.
Walgreen administered 6.4 million flu shots last year, more than any non-government entity. But that total fell well below the drugstore chain's initial target of 15 million shots. This year, Walgreen has targeted its television advertisements to the elderly, who are at higher risk of flu complications. "That's a group we're talking a little more directly to this year," said Cindy Donohue, Walgreen's vice president of pharmacy marketing.
Flu shots—typically $24.99 to $29.99 at most retailers—carry profit margins between 30% and 50%, analysts say. That's created competition between drugstore chains and pharmacies. Supermarket giant Safeway Inc., which operates Dominick's, Tom Thumb and Vons, said in a statement that these venues are more convenient than drugstores "because consumers visit grocery stores on a regular basis." The grocery chain is enticing flu-shot business by offering 10%-off coupons for future shopping trips.
Southeast grocer Winn-Dixie Stores Inc. launched a two-week promotion earlier this month, offering a $5 discount off its $29.99 flu shot. It is also giving out five free grocery items, such as apples, orange juice and hand sanitizer, to patients who get inoculated. The grocer thus far has seen weaker-than-expected demand, said Mike LeBlanc, Winn-Dixie's director of pharmacy.
"This year, you've got a complacent public out there thinking it's not that bad," said Mr. LeBlanc. "We recognized that, and we're doing some creative things to remind customers that it's still important to get inoculated."
Supervalu Inc., the nation's No. 3 supermarket chain by sales, is trying to attract flu-shot business by offering a coupon book with $45 worth of deals on products like frozen vegetables, bottled water and vitamins.
Heavy marketing and promotional campaigns may not sway many adults who weren't planning to get a flu shot, said Katherine Harris, a senior economist for the Rand Corp. who has done research on flu shots. In a Rand survey, about half of U.S. adults expressed no intention of getting vaccinated, she said. "It's not clear that a sign in front of the CVS or the Walgreens is going to have somebody who wasn't inclined to get vaccinated to change their mind," Ms. Harris said.
Source : http://online.wsj.com/article/SB10001424053111904491704576575220611032058.html
