This has contributed to the industry's healthy profitability. Supermarkets retain the lion's share of the pet food business, but mass merchants have gobbled up more than a quarter of the category and are still scoring double-digit increases in nearly every segment. In addition, specialty retailers such as the PetSmart chain continue to surge in the pet food category because they cater to consumers that want and need specialty products that cannot be found in traditional supermarkets. Consumer demand and the continuing quest for incremental sales are putting increasing pressure on mainstream supermarket chains to get involved in the rapidly growing natural foods business. There has been an evolving trend towards the nutritional health segment.
More baby boomers are concerned with their health.
An aging population will contribute to the growth of this special segment. Many supermarket operators have opened pharmacy departments in grocery stores for added convenience for shoppers. This has increased competition for prescription drugs particularly in larger metropolitan areas. The lead time for a new drug store to reach profitability is approximately three years. Nonetheless, drug stores generate their sales and earnings primarily from prescription drugs.