Walgreen August same-store sales up 6.5 percent

(Adds full-year sales, details on stores, generic drug sales)

CHICAGO, Sept 5 (Reuters) - Walgreen Co (WAG.N: Quote, Profile, Research, Stock Buzz), one of the largest U.S. drugstore chains, on Wednesday posted a 6.5 percent rise in August sales at stores open at least a year, although a shift toward lower-priced generic prescriptions tempered pharmacy sales.

Total sales rose 10.3 percent to $4.62 billion.

Same-store pharmacy sales increased 6.5 percent, while same-store sales of general, or "front-end," merchandise such as candy and cosmetics rose 6.6 percent.

Walgreen said same-store pharmacy sales growth was tempered by the introduction over the past year of generic drugs, which sell at lower prices than their branded counterparts. The number of prescriptions filled at comparable stores rose 3.4 percent.

Total sales in fiscal 2007, which ended Aug. 31, rose 13.4 percent to $53.76 billion, while comparable-store sales increased 8.1 percent, Walgreen said.

The company said it expected to open 550 stores during fiscal 2008, or 475 net new stores after relocations and closings. In June, the company said it planned to surpass 500 store openings in 2008.

Walgreen opened 615 new stores during fiscal 2007, including 115 acquisitions, for an increase of 531 after relocations and closings. That surpassed its fiscal 2007 goal of opening 500 new stores, including more than 400 net new stores after relocations and closings.