Drugstore.com reports Q1 loss
While remaining optimistic for 2007, online retailer Drugstore.com will report a $3 million to $4 million first quarter loss, according to the Seattle Post-Intelligencer
The Bellevue, Wash.-based company loss will be up to 28 percent higher than the same period in 2006. For the whole of 2007, the company expects losses will be up to 50 percent less from losses in 2006. The company also projects a fourth quarter profit this year.
The financials follow an announcement that Chief Financial Officer Robert Barton will resign in April.
"Building on our solid business momentum, we are now well positioned to accelerate growth and maximize our core business in 2007 by implementing key initiatives such as expanding beauty.com, executing on our "hard-to-find" strategy and developing strategic partnerships," Lepore said.
Drugstore.com sells prescriptions and over-the-counter medications as well as nutritional supplements, beauty products and vision products. In addition to Internet sales, the company offers mail-order pharmacy, local pick-up pharmacy and vision products,
Last month, the company announced a new “30 Free” promotion, allowing customers ordering a 90-day supply of certain generic prescriptions to receive a rebate for a 30-day supply up to a $50 value.
The company claims its prescription prices are as much as 70 percent lower for generics and up to 30 percent lower for brand-name drugs when compared to its competitors.
According to The List database, Drugstore.com works with Duffy & Partners in Minneapolis for interactive needs. Tribal DDB in San Francisco does creative work for the company.
According to Nielsen Monitor-Plus, Drugstore.com spent about $2.1 million on advertising last year. About $1.1 million was spent on outdoor advertising and another million on national magazine ads.
Drugstore.com is up against online pharmacies for generic brand shoppers from all the big brand names including Wal-Mart, CVS, Walgreens and other nationally-recognized stores. The company wants to distinguish itself with lower prices and hard-to-find items in the beauty and OTC categories, so agencies should look to counter the big brand names by maximizing the company’s low cost claims. The company also needs to assure consumers that their orders are safe and accurate through Web and delivery bag insert efforts. Interactive firms should make introductions with ideas for promoting beauty aids, holiday gifts and seasonal remedies like cold and flu and allergy seasons.
411 108th Avenue, NE
Bellevue, WA 98004
Chief Executive Officer and Chairman of the Board
Senior Manager, Marketing Communications PR