Private labels key to Shoppers

From the Globe and Mail:
Shoppers Drug Mart Corp. will add more than 200 private label organic foods to its shelves early next year, as well as more premium cosmetics, as the chain bolsters its position as a neighbourhood mini-department store.

The company is expanding into higher margin non-prescription categories in its bid to take on large competitors such as discounter Wal-Mart Canada Corp. and grocer Loblaw Cos. Ltd., which have moved more aggressively into the territory of pharmacies.

Jurgen Schreiber, chief executive officer at Shoppers, said yesterday that private labels, such as Life, now make up about 15 per cent of its overall sales and "next year we will definitely increase that again." He has set a long-term goal of more than doubling that level. ...more