From the Globe and Mail:
Proposed drug reforms in Ontario could pinch the bottom line of Shoppers Drug Mart Corp. and other pharmacies - and eventually have a ripple effect on drugstores across the country.
The Ontario government quietly introduced proposals this month that could reduce funding it provides to pharmacies while promoting new ways of pricing and distributing drugs in a bid to lower provincial drug costs.
Yesterday, Shoppers, the country's largest pharmacy chain, flagged the reforms as ones which "may have an adverse impact on the company's business, sales and profitability," while releasing its second-quarter results, which were respectable amid the recessionary climate. The proposed reforms could be implemented as early as this fall.
Jurgen Schreiber, chief executive officer of Shoppers, told analysts it's too early to assess the impact. But he said Shoppers also wants to trim pharmacy costs, so he welcomes the discussions with the Ontario government over the next month to find "joint solutions." ...more
Showing posts with label Shoppers Drug Mart. Show all posts
Showing posts with label Shoppers Drug Mart. Show all posts
Monday, July 27, 2009
Prescription sales right tonic for Shoppers Drug
From Reuters:
Shoppers Drug Mart, Canada's biggest pharmacy chain, reported a higher quarterly profit on Wednesday that matched expectations, helped by stronger sales of prescription drugs and beauty care products.
Shoppers said it earned C$136.1 million ($123.7 million), or 63 Canadian cents a share, for the second quarter, ended June 20, up from C$126.6 million, or 58 Canadian cents a share, for the same period last year.
The company said the 2009 results were also helped by the inclusion of Easter holiday weekend sales.
Revenue climbed 8.5 percent to C$2.29 billion, with same store sales rising 5.7 percent. ...more
Shoppers Drug Mart, Canada's biggest pharmacy chain, reported a higher quarterly profit on Wednesday that matched expectations, helped by stronger sales of prescription drugs and beauty care products.
Shoppers said it earned C$136.1 million ($123.7 million), or 63 Canadian cents a share, for the second quarter, ended June 20, up from C$126.6 million, or 58 Canadian cents a share, for the same period last year.
The company said the 2009 results were also helped by the inclusion of Easter holiday weekend sales.
Revenue climbed 8.5 percent to C$2.29 billion, with same store sales rising 5.7 percent. ...more
Friday, June 26, 2009
Shoppers Drug Mart may get lift from prescription legislation
From the Financial Post:
Could changes to the dispensing powers of pharmacists be a boon for Shoppers Drug Mart Ltd.?
Analyst Robert Gibson of Octagon Capital notes pending or already enacted legislation across Canada will lead to changes in pay for pharmacists by their home provinces, although there will not be much clarity on the issue until 2010.
“We believe that the fee the pharmacist will get for extending, adapting, or adjusting a prescription, for example, will be less than what doctors are charging for a similar service,” Mr. Gibson wrote in a note to clients, hiking his target price on the stock to $57 from $49.25. He maintained his "buy" rating on the shares. “Thus, it is in the provincial governments’ interest to proceed.” ...more
Could changes to the dispensing powers of pharmacists be a boon for Shoppers Drug Mart Ltd.?
Analyst Robert Gibson of Octagon Capital notes pending or already enacted legislation across Canada will lead to changes in pay for pharmacists by their home provinces, although there will not be much clarity on the issue until 2010.
“We believe that the fee the pharmacist will get for extending, adapting, or adjusting a prescription, for example, will be less than what doctors are charging for a similar service,” Mr. Gibson wrote in a note to clients, hiking his target price on the stock to $57 from $49.25. He maintained his "buy" rating on the shares. “Thus, it is in the provincial governments’ interest to proceed.” ...more
Monday, May 11, 2009
Shoppers Drug Mart looks to private-labels as customers hunt for deals
From the Canadian Press:
Retailers are shifting their focus to private-label brands as more Canadians search for low-cost shopping alternatives, and the chief executive of Shoppers Drug Mart wants to ensure that the company's popular Life brand and its other private-label products, aren't left in the dust.
Jurgen Schreiber told shareholders at the company's annual meeting Thursday that Canada's largest drug store chain by revenues (TSX:SC) is introducing three to five new private-label items each day, as part of long-term revamp of its private-label products across the entire store.
"There's so many more private-label (items) in the store," the CEO said in an interview after the meeting.
"Last year we had, I think, 1,800 new products coming in on private label."
Chances are, you probably didn't notice most of them the last time you visited their stores because, as Schreiber puts it, they were "silently introduced" onto the shelves, selling under relatively covert names like Nativa Organics, Quo cosmetics and Get office supplies. ...more
Retailers are shifting their focus to private-label brands as more Canadians search for low-cost shopping alternatives, and the chief executive of Shoppers Drug Mart wants to ensure that the company's popular Life brand and its other private-label products, aren't left in the dust.
Jurgen Schreiber told shareholders at the company's annual meeting Thursday that Canada's largest drug store chain by revenues (TSX:SC) is introducing three to five new private-label items each day, as part of long-term revamp of its private-label products across the entire store.
"There's so many more private-label (items) in the store," the CEO said in an interview after the meeting.
"Last year we had, I think, 1,800 new products coming in on private label."
Chances are, you probably didn't notice most of them the last time you visited their stores because, as Schreiber puts it, they were "silently introduced" onto the shelves, selling under relatively covert names like Nativa Organics, Quo cosmetics and Get office supplies. ...more
Saturday, May 09, 2009
Average spending 'significantly up': Shoppers Drug Mart
From the National Post:
Recession-addled consumers continue to spend more money at Shoppers Drug Mart Corp., despite the fact that it is not a discount retailer.
Chief executive Jurgen Schreiber said Thursday that the number of transactions at the country’s biggest drug retailer is up and that spending on an average basket at the checkout counter is "significantly up," which goes against general recessionary trends.
The biggest change that retailers tend to see during a recession "is that customers do fewer trips -- in general terms, a 5% to 7% reduction," Mr. Schreiber said following the pharmacy giant’s annual general meeting of shareholders. "But I don’t see that in our business."
He attributes the increase in customer trips to heightened promotions at the retailer, although he noted the rise in traffic was lower in the first quarter than in the first quarter of 2008. ...more
Recession-addled consumers continue to spend more money at Shoppers Drug Mart Corp., despite the fact that it is not a discount retailer.
Chief executive Jurgen Schreiber said Thursday that the number of transactions at the country’s biggest drug retailer is up and that spending on an average basket at the checkout counter is "significantly up," which goes against general recessionary trends.
The biggest change that retailers tend to see during a recession "is that customers do fewer trips -- in general terms, a 5% to 7% reduction," Mr. Schreiber said following the pharmacy giant’s annual general meeting of shareholders. "But I don’t see that in our business."
He attributes the increase in customer trips to heightened promotions at the retailer, although he noted the rise in traffic was lower in the first quarter than in the first quarter of 2008. ...more
Tuesday, April 28, 2009
Shoppers Drug Mart profit rises on prescriptions
From Reuters:
Shoppers Drug Mart (SC.TO), Canada's biggest pharmacy chain, reported a higher quarterly profit on Tuesday as sales of prescription drugs and beauty care products rose.
Shoppers said it earned C$106.8 million ($87.5 million), or 49 Canadian cents a share, for the quarter ended March 28, up from C$100.7 million, or 46 Canadian cents a share, for the same period last year, which included the high-sales Easter weekend. The Easter holiday weekend did not fall in the first quarter this year.
Revenue rose 8.5 percent to C$2.2 billion, with same store sales rising 4 percent.
Analysts were expecting, on average, earnings per share of 48 Canadian cents before items and revenue of C$2.16 billion.
The company's shares, which have fallen 11.4 percent in the past year, were up 2.7 percent at C$45.34 on the Toronto Stock Exchange on Tuesday. ...more
Shoppers Drug Mart (SC.TO), Canada's biggest pharmacy chain, reported a higher quarterly profit on Tuesday as sales of prescription drugs and beauty care products rose.
Shoppers said it earned C$106.8 million ($87.5 million), or 49 Canadian cents a share, for the quarter ended March 28, up from C$100.7 million, or 46 Canadian cents a share, for the same period last year, which included the high-sales Easter weekend. The Easter holiday weekend did not fall in the first quarter this year.
Revenue rose 8.5 percent to C$2.2 billion, with same store sales rising 4 percent.
Analysts were expecting, on average, earnings per share of 48 Canadian cents before items and revenue of C$2.16 billion.
The company's shares, which have fallen 11.4 percent in the past year, were up 2.7 percent at C$45.34 on the Toronto Stock Exchange on Tuesday. ...more
Sunday, March 01, 2009
Shoppers Drug Mart's cure for the recession
From the Financial Post:
The sorry economy may be sending customers in to a Shoppers Drug Mart Corp. outlet these days for some Xanax and a box of tissue to dry their tears.
But after posting 19 consecutive quarters of profit in a backsliding retail sector, what's important to chief executive Jurgen Schreiber is the added booty customers continue to walk out with: a tube of lipstick here, a scented candle there, a treat from the new line of antioxidant chocolate and perhaps some Royale toilet paper, offered that week at a fire-sale price. Before they know it, that trip for a box of Kleenex has morphed into a $150 basket of items at the checkout counter.
"People spend 20 to 30 minutes in our stores looking around," Mr. Schreiber said in a recent interview at his Toronto headquarters, shortly after Canada's largest drug store chain posted a fourth-quarter earnings rise of 14.4% and sales that leapt 15% to $2.5-billion. That's against an economic backdrop that saw the biggest overall retail sales decline in December since the same month in 1991, when the goods and services tax was introduced. Sales fell 5.4% from November, while economists were projecting a decline of up to 3%. ...more
The sorry economy may be sending customers in to a Shoppers Drug Mart Corp. outlet these days for some Xanax and a box of tissue to dry their tears.
But after posting 19 consecutive quarters of profit in a backsliding retail sector, what's important to chief executive Jurgen Schreiber is the added booty customers continue to walk out with: a tube of lipstick here, a scented candle there, a treat from the new line of antioxidant chocolate and perhaps some Royale toilet paper, offered that week at a fire-sale price. Before they know it, that trip for a box of Kleenex has morphed into a $150 basket of items at the checkout counter.
"People spend 20 to 30 minutes in our stores looking around," Mr. Schreiber said in a recent interview at his Toronto headquarters, shortly after Canada's largest drug store chain posted a fourth-quarter earnings rise of 14.4% and sales that leapt 15% to $2.5-billion. That's against an economic backdrop that saw the biggest overall retail sales decline in December since the same month in 1991, when the goods and services tax was introduced. Sales fell 5.4% from November, while economists were projecting a decline of up to 3%. ...more
Tuesday, February 17, 2009
Shoppers Drug Mart profit jumps, sees strong '09
From Reuters:
Shoppers Drug Mart (SC.TO) reported a 14.4 percent jump in quarterly profit on Thursday, helped by strong pharmacy and front-of-store sales, and said it saw sales rising through 2009, despite the slowing economy.
Canada's biggest pharmacy chain said it earned C$173.1 million ($138.8 million), or 80 Canadian cents a share, in its fourth quarter, up from C$151.3 million, or 70 Canadian cents a share, a year earlier.
Revenue grew 14.7 percent to C$2.5 billion.
Analysts had expected average earnings per share of 75 Canadian cents, before items, and revenue of C$2.495 billion, according to Reuters Estimates. ...more
Shoppers Drug Mart (SC.TO) reported a 14.4 percent jump in quarterly profit on Thursday, helped by strong pharmacy and front-of-store sales, and said it saw sales rising through 2009, despite the slowing economy.
Canada's biggest pharmacy chain said it earned C$173.1 million ($138.8 million), or 80 Canadian cents a share, in its fourth quarter, up from C$151.3 million, or 70 Canadian cents a share, a year earlier.
Revenue grew 14.7 percent to C$2.5 billion.
Analysts had expected average earnings per share of 75 Canadian cents, before items, and revenue of C$2.495 billion, according to Reuters Estimates. ...more
Sunday, January 11, 2009
Grocery and pharmacy retailers stable amid uncertain retail environment: analysts
From the Truro (NS) Daily News:
Companies that sell food, drugs and other consumer staples are best positioned to prosper in an uncertain retail environment that appears headed for a decline, industry observers say.
Keith Howlett of Desjardins Securities says leading grocery and pharmacy chains offer better earnings visibility at time when consumers remain cautious about spending.
Among the beneficiaries are grocery chains Metro Inc. (TSX:MRU.A) and Loblaw (TSX:L), along with pharmacy leaders Jean Coutu Group (TSX:PJC) and Shoppers Drug Mart (TSX:SC).
While Wal-Mart didn’t separate its Canadian results, it said Thursday that food and consumables were among the categories that performed well as same-store sales growth disappointed analysts.
Jean Coutu reported Thursday that its prescription sales remained strong during the third quarter although sales of non-prescription goods lagged expectations at 1.6 per cent growth. Chief executive Francois Coutu, however, noted consumers were increasingly seeking value through purchases of promotional items, which tend to be lower-priced. ...more
Companies that sell food, drugs and other consumer staples are best positioned to prosper in an uncertain retail environment that appears headed for a decline, industry observers say.
Keith Howlett of Desjardins Securities says leading grocery and pharmacy chains offer better earnings visibility at time when consumers remain cautious about spending.
Among the beneficiaries are grocery chains Metro Inc. (TSX:MRU.A) and Loblaw (TSX:L), along with pharmacy leaders Jean Coutu Group (TSX:PJC) and Shoppers Drug Mart (TSX:SC).
While Wal-Mart didn’t separate its Canadian results, it said Thursday that food and consumables were among the categories that performed well as same-store sales growth disappointed analysts.
Jean Coutu reported Thursday that its prescription sales remained strong during the third quarter although sales of non-prescription goods lagged expectations at 1.6 per cent growth. Chief executive Francois Coutu, however, noted consumers were increasingly seeking value through purchases of promotional items, which tend to be lower-priced. ...more
Sunday, November 30, 2008
Looking good in a recession
From the Globe and Mail:
It's September and retailers are already feeling the pinch of sluggish consumer spending, but not here in a wealthy enclave in north Toronto. Shoppers Drug Mart Corp. is opening one of its biggest, glitziest new outlets and it doesn't look much like a drugstore, with its high ceilings, large windows and bright ambience.
Glass shelves filled with fancy bottles of cosmetics and fragrances greet consumers at the entrance. Organic foods and Nintendo portable consoles are among the products further inside. Customers could pick up $435 facial creams, pose for passport photos and even drop off their prescriptions (it is, after all, still a drugstore).
Under the direction of former chief executive officer Glenn Murphy, Shoppers transformed itself into a Canadian retail powerhouse. Its expansion has been dramatic, growing to more than 1,100 stores from about 800 in 2001. These were the best of times, and they continued under the leadership of Jurgen Schreiber, who became CEO in early 2007. Shoppers has been continually evolving, branching out into high-end beauty products, groceries and seasonal gifts to the point where it is more like a neighbourhood mini-department store. Throw in a burgeoning array of high-margin private labels, a loyalty card that is the envy of retailers across the country and a near doubling of profit in the past five years and it's not hard to make a case it is the most successful retail chain in the country.
But all that was during good times for the broader economy. Now that the tide is turning, it's up to Mr. Schreiber to keep up the momentum. ...more
It's September and retailers are already feeling the pinch of sluggish consumer spending, but not here in a wealthy enclave in north Toronto. Shoppers Drug Mart Corp. is opening one of its biggest, glitziest new outlets and it doesn't look much like a drugstore, with its high ceilings, large windows and bright ambience.
Glass shelves filled with fancy bottles of cosmetics and fragrances greet consumers at the entrance. Organic foods and Nintendo portable consoles are among the products further inside. Customers could pick up $435 facial creams, pose for passport photos and even drop off their prescriptions (it is, after all, still a drugstore).
Under the direction of former chief executive officer Glenn Murphy, Shoppers transformed itself into a Canadian retail powerhouse. Its expansion has been dramatic, growing to more than 1,100 stores from about 800 in 2001. These were the best of times, and they continued under the leadership of Jurgen Schreiber, who became CEO in early 2007. Shoppers has been continually evolving, branching out into high-end beauty products, groceries and seasonal gifts to the point where it is more like a neighbourhood mini-department store. Throw in a burgeoning array of high-margin private labels, a loyalty card that is the envy of retailers across the country and a near doubling of profit in the past five years and it's not hard to make a case it is the most successful retail chain in the country.
But all that was during good times for the broader economy. Now that the tide is turning, it's up to Mr. Schreiber to keep up the momentum. ...more
Taking Canadians 'where no one else has gone'
From the Globe and Mail:
Last summer, when Jurgen Schreiber reviewed his latest batch of consumer research reports, one item in particular grabbed his attention: For the first time, just about as many consumers thought about Shoppers Drug Mart Corp. for beauty products as they did for its pharmacy.
The finding was the catalyst for Mr. Schreiber, chief executive officer of Shoppers, to decide to expand even further into high-end makeup and fragrances.
Shoppers had already built a network of in-store beauty boutiques stocked with some high-end (and high-margin) brands. Now Mr. Schreiber wanted more.
This month, Shoppers launched its first Murale store, a standalone upscale beauty and spa retailer with 200 brands such as Bobbi Brown, Chanel and Estée Lauder - more than 16 times more labels as in a Shoppers beauty boutique. Prices range from $1,060 for a jar of Natura Bisse skin cream from Spain to $12 for eye shadows.
While Mr. Schreiber didn't plan for the launch to come in an economic downturn, he's resigned to the fact - and not letting it deter his plans. ...more
Last summer, when Jurgen Schreiber reviewed his latest batch of consumer research reports, one item in particular grabbed his attention: For the first time, just about as many consumers thought about Shoppers Drug Mart Corp. for beauty products as they did for its pharmacy.
The finding was the catalyst for Mr. Schreiber, chief executive officer of Shoppers, to decide to expand even further into high-end makeup and fragrances.
Shoppers had already built a network of in-store beauty boutiques stocked with some high-end (and high-margin) brands. Now Mr. Schreiber wanted more.
This month, Shoppers launched its first Murale store, a standalone upscale beauty and spa retailer with 200 brands such as Bobbi Brown, Chanel and Estée Lauder - more than 16 times more labels as in a Shoppers beauty boutique. Prices range from $1,060 for a jar of Natura Bisse skin cream from Spain to $12 for eye shadows.
While Mr. Schreiber didn't plan for the launch to come in an economic downturn, he's resigned to the fact - and not letting it deter his plans. ...more
Tuesday, November 11, 2008
Shoppers' new beauty emporium takes on Sephora
From the Ottawa Citizen:
Shoppers Drug Mart Corporation has chosen Ottawa to launch its first high-end, multi-service beauty store in Canada. Murale features a cocktail of services, from a pharmacy that exudes Scandinavian style to a "bar" focusing on beautiful skin and trim eyebrows.
Launched on the weekend at Place d'Orléans Shopping Centre, Murale is the brainchild of Shoppers Drug Mart president and CEO Jurgen Schreiber, who wanted to combine beauty and dermatological products with professional services in a sleek space.
Among its 30 services Murale offers purifying facial and body treatments, and a skin analysis section called Beauty Metrix where a "skin diagnostic tool" measures a customer's skin damage, skin quality and moisture level, while a consultant will suggest topical creams to meet the customer's needs. ...more
Shoppers Drug Mart Corporation has chosen Ottawa to launch its first high-end, multi-service beauty store in Canada. Murale features a cocktail of services, from a pharmacy that exudes Scandinavian style to a "bar" focusing on beautiful skin and trim eyebrows.
Launched on the weekend at Place d'Orléans Shopping Centre, Murale is the brainchild of Shoppers Drug Mart president and CEO Jurgen Schreiber, who wanted to combine beauty and dermatological products with professional services in a sleek space.
Among its 30 services Murale offers purifying facial and body treatments, and a skin analysis section called Beauty Metrix where a "skin diagnostic tool" measures a customer's skin damage, skin quality and moisture level, while a consultant will suggest topical creams to meet the customer's needs. ...more
Sunday, November 09, 2008
Windsor's independent pharmacists caught in drug war crossfire
From the Windsor Star:
The mural of an old-fashioned, small-town apothecary on the window of Steve Gavrilidis's South Windsor pharmacy reflects the personal service he provides inside -- his best, perhaps only, defence against the rapid expansion of competing national drugstore chains.
Like hundreds of independent pharmacists across the province, Gavrilidis finds himself caught in the crossfire of Ontario's drug war -- the battle for market supremacy being waged between Shoppers Drug Mart and upstart Rexall.
"They're chasing each other and nipping at each other's heels, taking away from guys like me," said Gavrilidis. "Everybody wants a piece of the pie and the pie is getting smaller."
The Pharma Health independent pharmacy has found a niche providing the personal touch. Pharmacist Steve Gavrilidis assists customers in the comfort
Like Burger King and McDonald's at the height of the burger wars, the two drugstore chains are rapidly expanding across the province, acquiring independent outlets and opening new stores in each other's shadows. In Goderich earlier this month, Rexall and Shoppers both opened stores in the span of a week.
"Rexall is out to get Shoppers' market share and that's the bottom line," said retired University of Windsor business professor Alfie Morgan. "It's a competitive battle between two giants." ...more
The mural of an old-fashioned, small-town apothecary on the window of Steve Gavrilidis's South Windsor pharmacy reflects the personal service he provides inside -- his best, perhaps only, defence against the rapid expansion of competing national drugstore chains.
Like hundreds of independent pharmacists across the province, Gavrilidis finds himself caught in the crossfire of Ontario's drug war -- the battle for market supremacy being waged between Shoppers Drug Mart and upstart Rexall.
"They're chasing each other and nipping at each other's heels, taking away from guys like me," said Gavrilidis. "Everybody wants a piece of the pie and the pie is getting smaller."
The Pharma Health independent pharmacy has found a niche providing the personal touch. Pharmacist Steve Gavrilidis assists customers in the comfort
Like Burger King and McDonald's at the height of the burger wars, the two drugstore chains are rapidly expanding across the province, acquiring independent outlets and opening new stores in each other's shadows. In Goderich earlier this month, Rexall and Shoppers both opened stores in the span of a week.
"Rexall is out to get Shoppers' market share and that's the bottom line," said retired University of Windsor business professor Alfie Morgan. "It's a competitive battle between two giants." ...more
Shoppers Drug Mart Q3 profit climbs 15%
From the Financial Post:
Third-quarter profit at Shoppers Drug Mart Corp. climbed 15% as the retailer of cosmetics, vitamins and prescription drugs built out its store network and increased its sales in house-branded goods.
Net income at Canada's largest drug store chain rose to $162.5-million, or 75¢ per share, compared with $141.7-million, or 65¢, in the same period a year ago. Analysts polled by Thomson First call were predicting profit of 75¢.
Sales rose 9.8% to $2.79-billion and same-store sales, a retailing bellwether which looks at sales at stores open at least a year, rose 5%, not including tobacco sales. Prescription same-store sales rose 5.2% and merchandise sales were up 4.8%.
This was the 18th consecutive quarter of increased profit at Shoppers, which increased its retail space by 12.6% in the period.
"No real surprises," said analyst Bob Gibson of Octagon Capital, which was reassuring, he said, given recent turmoil in the more discretionary end of the retailing sector. The analyst said he was considering moving his rating on the shares up to a buy from a hold given its recent decline in share price. Prior to yesterday's close, Shoppers' shares had lost 10% of their value this year. ...more
Third-quarter profit at Shoppers Drug Mart Corp. climbed 15% as the retailer of cosmetics, vitamins and prescription drugs built out its store network and increased its sales in house-branded goods.
Net income at Canada's largest drug store chain rose to $162.5-million, or 75¢ per share, compared with $141.7-million, or 65¢, in the same period a year ago. Analysts polled by Thomson First call were predicting profit of 75¢.
Sales rose 9.8% to $2.79-billion and same-store sales, a retailing bellwether which looks at sales at stores open at least a year, rose 5%, not including tobacco sales. Prescription same-store sales rose 5.2% and merchandise sales were up 4.8%.
This was the 18th consecutive quarter of increased profit at Shoppers, which increased its retail space by 12.6% in the period.
"No real surprises," said analyst Bob Gibson of Octagon Capital, which was reassuring, he said, given recent turmoil in the more discretionary end of the retailing sector. The analyst said he was considering moving his rating on the shares up to a buy from a hold given its recent decline in share price. Prior to yesterday's close, Shoppers' shares had lost 10% of their value this year. ...more
Tuesday, September 16, 2008
Shoppers Drug Mart targets 50 new stores a year
From Reuters:
Shoppers Drug Mart expects to boost its real estate portfolio across Canada by at least 10 percent over the next five years, both by expanding existing stores and building new ones, its chief executive said on Tuesday.
Canada's biggest pharmacy chain expects to open at least 50 new stores during that period, Jurgen Schreiber, president and CEO, told an industry conference.
The company, which opened with one store in 1962, currently operates more than 1,110 stores under the Shoppers Drug Mart and Pharmaprix banners.
Schreiber said there is considerable room to expand in Quebec, British Columbia and Alberta, where there is one store for every 60,000 people. This compares with an average of 24,000 people per store in Ontario. ...more
Shoppers Drug Mart expects to boost its real estate portfolio across Canada by at least 10 percent over the next five years, both by expanding existing stores and building new ones, its chief executive said on Tuesday.
Canada's biggest pharmacy chain expects to open at least 50 new stores during that period, Jurgen Schreiber, president and CEO, told an industry conference.
The company, which opened with one store in 1962, currently operates more than 1,110 stores under the Shoppers Drug Mart and Pharmaprix banners.
Schreiber said there is considerable room to expand in Quebec, British Columbia and Alberta, where there is one store for every 60,000 people. This compares with an average of 24,000 people per store in Ontario. ...more
Wednesday, September 03, 2008
Shoppers’ beauty stores raise eyebrows
After a really successful run, could this be a misstep by Shoppers Drug Mart? I'm not a financial expert, but I don't really see these stores catching on. If you want to buy cosmetics from Shoppers Drug Mart, why wouldn't you just go to the nearest existing Shoppers location? They seem to be everywhere already.
From the Financial Post:
Beauty has a new name at Shoppers Drug Mart Corp. - "Murale."
The largest drug store chain in Canada has unveiled the name of its newest store concept, whose first stores will open in Ottawa and Montreal in November.
"Murale is a beauty masterpiece that will give access to the most innovative and leading beauty products, services, consultation, and advice," said Jurgen Schreiber, chief executive of Shoppers.
The company said in a statement that the name Murale "is distinctive, expressive and highly suggestive of art and beauty". Shoppers first announced that it would open stand-alone cosmetic boutiques at the annual general meeting of shareholders this year.
The stores, which will compete with standalone specialty beauty chains such as Sephora, will carry dermatological skin care and luxury beauty items and fragrances. ...more
Friday, July 18, 2008
Postal union stages Day of Action
From the Timmins (Ont.) Daily Press:
The Canadian Union of Postal Workers held a day of action on Friday to express its dissatisfaction over services being mailed out to a popular drug store.
More and more of the work is getting shipped to Shoppers Drug Mart stores, said Donald Lafleur, national vice president of the union.
The gathering was held outside the Canada Post office in the heart of downtown, with a barbecue for those passing by.
"We're here to raise awareness about the government moving the public postal service into the private realm," Lafleur said.
"The concern we have is the services will deteriorate."
He said postal workers receive a level of training unmatched by staff in the drug stores, who he believes are underpaid and won't receive a pension or benefits. ...more
The Canadian Union of Postal Workers held a day of action on Friday to express its dissatisfaction over services being mailed out to a popular drug store.
More and more of the work is getting shipped to Shoppers Drug Mart stores, said Donald Lafleur, national vice president of the union.
The gathering was held outside the Canada Post office in the heart of downtown, with a barbecue for those passing by.
"We're here to raise awareness about the government moving the public postal service into the private realm," Lafleur said.
"The concern we have is the services will deteriorate."
He said postal workers receive a level of training unmatched by staff in the drug stores, who he believes are underpaid and won't receive a pension or benefits. ...more
Shoppers Drug Mart Rises After Profit Beats Estimates
From Bloomberg:
Shoppers Drug Mart Corp., Canada's biggest drugstore chain, rose the most in six years in Toronto trading after second-quarter profit climbed more than analysts estimated on higher sales of medicine and store-brand products.
Net income increased 14 percent to C$128.3 million ($127.8 million), or 59 cents a share, for the 17th straight gain in quarterly profit. Revenue in the three months that ended June 14 rose 9.4 percent, Shoppers Drug Mart said today in a statement.
The chain boosted sales of generic drugs and introduced more profitable merchandise such as a new Nativa organic food line and higher-priced cosmetics. Chief Executive Officer Jurgen Schreiber, 46, added more store-brand lines to gain market share since taking the helm last year. ...more
Shoppers Drug Mart Corp., Canada's biggest drugstore chain, rose the most in six years in Toronto trading after second-quarter profit climbed more than analysts estimated on higher sales of medicine and store-brand products.
Net income increased 14 percent to C$128.3 million ($127.8 million), or 59 cents a share, for the 17th straight gain in quarterly profit. Revenue in the three months that ended June 14 rose 9.4 percent, Shoppers Drug Mart said today in a statement.
The chain boosted sales of generic drugs and introduced more profitable merchandise such as a new Nativa organic food line and higher-priced cosmetics. Chief Executive Officer Jurgen Schreiber, 46, added more store-brand lines to gain market share since taking the helm last year. ...more
Monday, July 07, 2008
Shoppers' move into specialty pharmacy market
From the Financial Post:
Shoppers Drug Mart Corp.'s decision to move into the specialty pharmacy market this week was well received by analysts.
The acquisition of Calea HealthAccess, which distributes and administers drugs to patients with complex medical conditions such as cancer and HIV, provides Shoppers with better knowledge of a fast-growing specialty pharmacy segment," Scotia Capital analyst Ryan Balgopal said in a note to clients. With growth rates in the mid-teens, entering the sector "is complementary to [Shoppers'] existing businesses and allows it to leverage its scale." Mr. Balgopal reiterated his rating of sector outperform on the shares and his one year price target of $67.50.
While the acquisition is not material from a financial reporting perspective, Shoppers' entry into the $3-billion a year specialty pharmacy business in Canada seems to follow a trend occurring among U.S. counterparts such as CVS and Walgreens, said Desjardins Securities analyst Keith Howlett. "Both drug retailers and wholesalers in the U.S. appear to want to move to a new business paradigm with higher margins, based upon services which make more healthcare more efficient for patients and players," he wrote in a note to clients. He reiterated his buy recommendation and his $60 price target on the shares. "In a sea of retailing despair, Shoppers is one of a select few that will grow earnings per share in the second quarter of 2008." ...more
Shoppers Drug Mart Corp.'s decision to move into the specialty pharmacy market this week was well received by analysts.
The acquisition of Calea HealthAccess, which distributes and administers drugs to patients with complex medical conditions such as cancer and HIV, provides Shoppers with better knowledge of a fast-growing specialty pharmacy segment," Scotia Capital analyst Ryan Balgopal said in a note to clients. With growth rates in the mid-teens, entering the sector "is complementary to [Shoppers'] existing businesses and allows it to leverage its scale." Mr. Balgopal reiterated his rating of sector outperform on the shares and his one year price target of $67.50.
While the acquisition is not material from a financial reporting perspective, Shoppers' entry into the $3-billion a year specialty pharmacy business in Canada seems to follow a trend occurring among U.S. counterparts such as CVS and Walgreens, said Desjardins Securities analyst Keith Howlett. "Both drug retailers and wholesalers in the U.S. appear to want to move to a new business paradigm with higher margins, based upon services which make more healthcare more efficient for patients and players," he wrote in a note to clients. He reiterated his buy recommendation and his $60 price target on the shares. "In a sea of retailing despair, Shoppers is one of a select few that will grow earnings per share in the second quarter of 2008." ...more
Tuesday, June 24, 2008
Shoppers Drug Mart and Jean Coutu may feel the heat from U.S.
From the Financial Post:
He already had a “sell” rating on shares of Shoppers Drug Mart Corp., but a deal last week that appears to signal a U.S. health care player’s push up north gave Octagon Capital analyst Robert Gibson even more reason to be bearish on Canada’s largest pharmacy chain.
On June 19, health care logistics provider McKesson Canada, a division of San Francisco-based McKesson Corp., announced that it is buying Quebec-based Group PharmEssor Inc., which consists of 270 independently-owned pharmacies in Quebec, Ontario and the Atlantic provinces. The chain operates under the Proxim and ProxiMed brands. In the U.S., McKesson runs Health Mart, the number one independent retail pharmacy, Mr. Gibson noted.
“It would appear that this Proxim acquisition is McKesson’s move north with their Health Mart model,” he told clients.
The company’s vertical integration likely means the McKesson-Proxim combination will become a stronger competitor to major chains in Quebec and the Atlantic provinces, including Jean Coutu Group Inc., the analyst said. ...more
He already had a “sell” rating on shares of Shoppers Drug Mart Corp., but a deal last week that appears to signal a U.S. health care player’s push up north gave Octagon Capital analyst Robert Gibson even more reason to be bearish on Canada’s largest pharmacy chain.
On June 19, health care logistics provider McKesson Canada, a division of San Francisco-based McKesson Corp., announced that it is buying Quebec-based Group PharmEssor Inc., which consists of 270 independently-owned pharmacies in Quebec, Ontario and the Atlantic provinces. The chain operates under the Proxim and ProxiMed brands. In the U.S., McKesson runs Health Mart, the number one independent retail pharmacy, Mr. Gibson noted.
“It would appear that this Proxim acquisition is McKesson’s move north with their Health Mart model,” he told clients.
The company’s vertical integration likely means the McKesson-Proxim combination will become a stronger competitor to major chains in Quebec and the Atlantic provinces, including Jean Coutu Group Inc., the analyst said. ...more
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