Consumers appear to be more optimistic about the economy, according to Deloitte's 24th annual holiday survey of retail spending and trends. More than half of those surveyed (54%) said they expect the economy will improve in 2010, compared with 28% responding favorably last year. The optimism is also starting to show in Americans' shopping plans. More than half of consumers (51%) said they hope to spend more or the same on the holidays, an improvement from last year's 41% response.

Though consumers may have more confidence in the economy, the Deloitte study found that many still plan to reduce their spending on gifts. The average number of gifts people plan to purchase declined to 18.2 from 21.5 last year and 23.1 in 2007. The amount consumers plan to spend on gifts is down as well, to $452 compared with $532 in 2008, and $569 in 2007. Consumers, however, do appear willing to increase their spending on the non-gift items that traditionally account for a smaller portion of the holiday budget. These categories include socializing away from home, entertaining, non-gift clothing and home/holiday furnishings. These increases lift consumers' total anticipated holiday spend to $1,145, which is a 16% increase over last year.

"Consumers appear to be revisiting shopping categories that they had put on the back burner for a while, and they may be returning because of the need to replenish," said Stacy Janiak, vice chairman and Deloitte's U.S. Retail leader. "Over the past several months, we have seen key economic indicators ease from their worst levels, helping to put more resources back into Americans' pockets. As a result, a cautious upturn in sentiment may draw consumers out of their bunkers, turn their focus away from saving and debt reduction, and encourage them to do some holiday shopping for their homes, family and friends."

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Pharmacists have been included in legislation intended to help small medi cal practices adopt healthcare information technology. The Small Business Health Information Technology Financing Act, an amendment introduced by House Subcommittee Chairwoman Kathy Dahlkemper (D-Pa.), makes provisions for state-licensed pharmacists and other healthcare providers to use a lending program for health IT. The program would provide reduced-cost loans guaranteed up to 90 percent, with a subsidized deferment period of up to three years. The amendment was included in H.R.3854, the Small Business Financing and Investment Act of 2009, which was passed by the U.S. House Small Business Committee and is slated for vote by the full House.

Bruce T. Roberts, executive vice president and CEO of the National Community Pharmacists Association, which includes the owners of more than 22,700 independent community pharmacies, pharmacy franchises and chains, said the organization supports the amendment. "Health information technology improves the quality of patient care because healthcare providers are able to operate in a more efficient and coordinated manner," he said. "Evidence suggests that these breakthroughs will also save our healthcare delivery system money, but the upfront investments in technology are not inconsequential for small business owners who are already focused on their present daily operating challenges." "The timing of this financial assistance is especially appreciated with the federal government's drive to have system-wide use of electronic health records in a few years. Now pharmacists can focus on helping to create a system that works for everybody and not worry about the implementation costs of participation," he added.

According to The Wall Street Journal,approximately 100 billion plastic shopping bags are used in the U.S. each year, and only roughly one to three percent of those bags are recycled. To encourage shoppers to cut down on the use of single-use plastic bags, CVS/pharmacy has introduced a new product and program called GreenBagTag which rewards members of the company's ExtraCare loyalty program for declining plastic bags when making a purchase. As of today, GreenBagTag is available for purchase at any of CVS/pharmacy's 7,000 convenient store locations nationwide and all store locations now accept GreenBagTag.

CVS/pharmacy's GreenBagTag: How the Program Works - Available in-stores for 99 cents, GreenBagTag is made with corn-based material, an annually renewable resource, as well as 100% recycled silicone,and is packaged in 100% recycled paper. Shoppers can purchase GreenBagTag for themselves or as a gift for environmentally-conscious friends and family; each tag must be used with an ExtraCare card. Whether they are using re-usable bags or simply carrying out their items, customers who choose not to take a plastic bag, benefit each time they shop at CVS/pharmacy and scan both their GreenBagTag and ExtraCare card at the register. On every fourth scan, GreenBagTag cardholders receive a $1.00 Extra Buck on the bottom of their receipt. Extra Bucks are like free CVS/pharmacy money that can be used on nearly anything in the store.

The GreenBagTag program is a new feature of CVS/pharmacy's ExtraCare Rewards program, the largest retail rewards program in the U.S. Now more than 62 million existing cardholders (and shoppers who register for a new ExtraCare account) can receive incentives for choosing not to take a single-use plastic bag when shopping, in addition to the various other money-saving benefits associated with participation in ExtraCare.

"CVS/pharmacy is committed to improving the lives of the people and communities we serve, and that includes helping all our customers adopt more eco-friendly practices," said Bari Harlam, Vice President of Marketing for CVS/pharmacy. "We have a long history of rewarding our customers with incentives that are both convenient and beneficial to their well-being. Our new GreenBagTag program provides an easy way for shoppers to take a small step in going green, while also receiving Extra Bucks as a 'Thank you!' for joining us in making an impact in the fight to reduce waste from disposable plastic bags."

How ExtraCare works: Quarterly and Instant Extra Bucks Beyond the Extra Bucks earned through the GreenBagTag program, CVS/pharmacy customers save money through the ExtraCare Rewards program all year long. Registering for an ExtraCare account is free and takes less than two minutes in-store or online. ExtraCare cardholders receive 2% back on nearly every dollar spent i n the store, every time they shop, regardless of whether or not they participate in any sales or special offers. Additionally, for every two prescriptions filled at CVS/pharmacy, ExtraCare cardholders automatically receive $1 Extra Buck. At the end of each quarter, these Extra Bucks are printed on the bottom of cardholder's receipts during their first visit. Cardholders can also register their ExtraCare accounts on CVS.com, so they can print out Extra Bucks at home before shopping.

In addition to the automatic quarterly rewards all cardholders receive, each time a shopper visits CVS/pharmacy, certain items are marked with instant Extra Bucks offers. These special discounts are listed in the weekly sales circular and are marked on store shelves. To take advantage of these instant offers, shoppers earn additional Extra Bucks simply by purchasing the qualifying items. These Extra Bucks coupons print immediately on the bottom of the receipt after the transaction is complet ed.

On the heels of The Great Atlantic & Pacific Tea Co. launching its online paperless and completely digital coupon service with Zavers, the company announced that Pathmark stores also will offer shoppers an easy and eco-friendly way to save more through the company's new Online Advantage savings program. Beginning Nov. 16, valued club card customers at Pathmark can go online at www.pathmark.com and simply "save" coupons directly to their club card, by selecting from the variety of premium products they want most, saving the coupons to their account and going shopping. The savings, the company said, will be deducted at the cash register automatically.

"We are proud to offer this exciting new program to our Pathmark customers. Not only will this make their lives easier, but it will also make their shopping more affordable," said Jennifer MacLeod, SVP marketing and communications, The Great Atlantic & Pacific Tea Co. "This is especially important to us, as now more than ever we are working to help our customers through these challenging economic times. Digital coupons will allow our customers to not only save money, but time as well. Now, saving more is effortless." Online Advantage will be made available to club card members through a partnership with Zavers, a leading digital promotions platform provider. Zavers is committed to helping consumers save by providing paperless coupons that can be found online or on mobile devices. "Since launching in A&P retail banner stores, consumer feedback has been tremendous. In fact, we are seeing redemption rates as high as 40%," said Thad Langford, president and CEO of Zavers . "In addition to strong consumer interest, Zavers' innovative promotions platform is a valuable enhancement to Pathmark's loyalty program and product manufacturers' promotions efforts."

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Blue Cross Blue Shield of Florida has announced that CVS/pharmacy stores across Florida will carry the Blue Cross and Blue Shield of Florida Health Cards. The health cards are available in displays located in the pharmacy areas of each store. There are two types of cards. One can be used for insurance and another for healthcare discounts. The "Gift of Health Care" card can be used to purchase health insurance plans. It retails for $59 and can be applied accordingly to the plan the customer selects during the activation call. The card features GoBlue, an issue preventative and routine health plan. For other plans customers will need medical underwriting before coverage is issued.

The "FamilyBlue Discount Card" will retail for $19. Good for three months, this card provides discounts on dental and vision care, as well as prescriptions for the entire family. "We believe this is a fresh and innovative approach to make healthcare products more accessible to Floridians. We are the first health company to offer health cards in retail," stated Craig Thomas, BCBSF VP and CMO. "Consumers have told us that they need affordable options - retail stores, such as CVS and Winn-Dixie, allow us to further reach out to communities and to those in need of coverage and care with more affordable solutions."

Consumer adoption of retail-based health clinics is strong and growing, and the industry's potential to expand its revenue opportunities will support its long-term sustainability, according to a recent Deloitte Center for Health Solutions report. "The growth and evolution of retail clinics reflect opportunities for disruptive innovation and an improved value proposition of price, quality and service for the U.S. healthcare system," stated Paul Keckley, Ph.D., executive director of Deloitte Center for Health Solutions. "While the current economic downturn has incited a period of contraction, the retail clinic industry will emerge with a more refined business model to drive a second, albeit slower, wave of growth in the next three years."

According to the report, titled "Retail Clinics: Update and Implications," the retail clinic market growth will be 10% to 15% from 2010 thro ugh 2012 and will accelerate above 30% from 2013 to 2014. Looking ahead, the market potential for retail clinics remains strongest in retail pharmacies. Within 10,000 retail pharmacies, there are currently 801 clinic locations. There are also expansion opportunities within big-box discount stores and grocery outlets. Furthermore, the business model is also bound to evolve. Core services at retail clinics typically include treatment for acute ailments, preventative health screenings, prescriptions and OTC therapeutics; however, the model is capable of supporting two additional revenue streams, according to Deloitte:

• Core extenders including medication management, health coaching for chronic issues and employee wellness.
• New revenue programs such as care management services fo r chronic issues; referral management services for acute, specialty or OTC issues; and health insurance for individuals or groups.

While the industry does face a few challenges, namely labor shortages, compensation inflation, price pressures from new entrants and some regulatory pressures at the state level, its strong value proposition should not be underestimated. "As a new entrant to the healthcare industry, retail clinics represent a threat to many traditional healthcare stakeholders," stated Keckley. "However, to consumers, health plans and employers, retail clinics offer an important health care alternative with a strong value proposition. Therefore, we expect this new sector to mature while growing its scope of services, location and impact on population-based health status."

Prices for drugs have increased despite drug companies' promise to lower them, according to published reports. The New York Times reported Sunday that while drug makers have promised to lower overall drug prices by $8 billion, wholesale prices of branded drugs have increased by 9%, raising prices by $10 billion. By contrast, the Times reported, the Consumer Price Index, which the Bureau of Labor Statistics maintains as a measure of inflation, decreased by 1.3%.

Pharmaceutical Research and Manufacturers of America, an organization representing biotech and branded drug companies, lashed out at the Times' story Monday. "Unfortunately, today's New York Times only tells half a story, using selected statistics to make a flawed assumption that an increase in drug prices must somehow be tied to healthcare reform," PhRMA SVP Ken Johnson said in a statement. "In truth, price increases are the natural result of market forces." Johnson said drug companies determined prices independently based on considerations such as patent expirations and research and development costs, noting that many of PhRMA's member companies have experienced flat or negative revenue growth. According to a report by CNN on Nov. 17th, the cost of GENERICS has actually decreased. While this may not offset the increase in brand drugs, it will help both patients and pharmacies in evaluating costs.