Market News

Shoppers Denies Walgreen-Takeover Speculation

Despite company claims to the contrary, Shoppers Drug Mart may be entertaining the possibility of being taken over by Walgreen Co., the largest drug-store chain in the States. Sales at Shoppers have gone gangbusters of late, thanks to an ambitious expansion; the introduction of new grocery, seasonal and high-end beauty lines; and strong profit increases. Just the same, Shoppers thrives in spite of a dispensing fee that, at $11.99, is about twice as high as that of its big-name competition. And prescription sales account for about 47% of Shoppers' $6.5-billion annual sales. The might of Walgreen's US$37.5-billion in sales would almost certainly have an impact on Shoppers' performance in this area. Source: Canadian Grocer E-Newsletter, Sept.2nd.,2005.