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Retail watch: Walgreen's (WAG -7%) FQ3 earnings report may have tipped off a disturbing industry...

Retail watch: Walgreen's (WAG -7%) FQ3 earnings report may have tipped off a disturbing industry trend, according to analysts. Front-end sales dropped 3.9% during the quarter as the pattern of soft traffic for the drugstore sector (RAD, CVS) continues. Though the dollar store group (DLTR, DG, FDO) has been a competitive threat for items such as toiletries and greeting cards, it's the grocery sector (SWY, KR, SVU) which may taken the bigger slice of the consumables pie.

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