Walgreen same-store sales up, sees consumer pull back

CHICAGO (Reuters) - Walgreen Co said on Thursday that sales at stores open at least a year are up just 2.2 percent so far this month, as cost-conscious consumers bought cheaper private label products and did not buy many decorative Halloween items.

The growth paled in comparison to sales at its two main competitors, CVS Caremark Corp and Rite Aid Corp , who reported sales for slightly different periods.

President and Chief Operating Officer Greg Wasson, speaking at the drugstore chain's first-ever analyst meeting, said Walgreen is seeing consumers making purchases closer to when they get their paychecks and using credit cards less often.

Through October 28, Walgreen's same-store, front-end sales, or sales of general merchandise, were flat. Besides the poor showing of Halloween-themed items, Walgreen said its photo services sales were weak. Food and beauty items sold well.

Same-store pharmacy sales rose 3.4 percent. Total prescriptions filled at stores open at least a year rose just 0.4 percent.

CVS, which no longer reports monthly same-store sales, said third-quarter same-store sales rose 3.7 percent -- up 3.8 percent for the pharmacy section and up 3.3 percent for general merchandise.

CVS said it expects both pharmacy and general merchandise same-store sales to be better in the fourth quarter than the third quarter, with an overall increase of 3.5 percent to 5 percent.

Rite Aid said its same-store sales for the four weeks ended October 25 rose 2.9 percent -- up 1.9 percent for the pharmacy section and up 4.9 percent for general merchandise.

Walgreen plans to report full October sales on November 4.

Shares of Walgreen were up 4.3 percent at $24.76 in midday trading, while CVS rose nearly 10.6 percent to $29.11. Rite Aid shares were up 6.2 percent at 50 cents.

(Editing by Leslie Gevirtz)