Pharmacy and beauty drive Shoppers' growth

Drug Store News,  May 23, 2005  

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TORONTO -- Shoppers Drug Mart two weeks ago held its annual meeting here, touting a successful year with sales of $5.4 billion for its 2004 fiscal year ended Jan. 1, an increase of 6.8 percent.

And armed with positive first quarter results also released earlier this month, Shoppers Drug Mart's focus on Growing its store base, differentiating its beauty offerings with a department-store style beauty boutique and a new pharmacy In system seems to be driving sustained growth looking forward.

Shoppers Drug Mart is introducing more larger-box prototypes of 12,000 square feet to 14,000 square feet, which has been credited for helping improve the pharmacy's shopability. A total of 270 larger-box stores are projected for the end of 2005 across a drug store base that should approach 1,000 by year's end.

The chain introduced a new pharmacy system, HealthWatch Next Generation, and a new pharmacy design late last year that serve to streamline pharmacists' work flow while creating a more inviting health care shopping experience for consumers. Next Generation is Web-based, providing a centralized data warehouse for pharmacists.

The new pharmacy design also is focused on improving the customer's experience. "[It'] is bigger and more flexible," said Glenn Murphy, chairman 35 and chief executive officer. "It allows the Healthy Living department and the pharmacy to be fully integrated."

Another pharmacy program Shoppers introduced is the call-back program, in which pharmacists call patients within 48 hours of having filled a new prescription.

Shoppers also significantly increased its number of Beauty Boutiques, adding 23 last year and in the first quarter, bringing its total to 30, and plans to add a total of 35 to 40 in 2005.

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