Market News

Shoppers Poised for Success in New Drugstore Scene

The drugstore business is thriving, and Canada's largest player stands to benefit nicely from the trend. An ageing demographic spells an increased demand for medication and health products. That demographic change is just one of several factors that explain why Shoppers' shares have enjoyed such a ride, of late. The stock gained 8.2% in December alone and, among analysts who follow Shoppers, about 71% surveyed by Bloomberg Business News gave the stock a "buy" rating. Overall, analysts say those retailers who play into the demonstrated demand for fancy new stores and who build upon customer loyalty will enjoy the most success in this promising new landscape. Independent retailers, meanwhile, might have a job ahead of them winning allegiance from customers and support from vendors. Source Canadian Grocer E-Newsletter, December 23, 2005.