Pharmaprix | Less electronics, more beauty products

Do game consoles and electronic devices really find buyers when they are sold in pharmacies? One thing is certain, Loblaw has decided to no longer offer this type of product in its Pharmaprix and Shoppers Drug Mart stores.

« [Ordinateurs, télévisions, caméras]”, these sales generate an extremely low margin and do not contribute to the constitution of the consumer basket”, underlined Richard Dufresne, chief financial officer of Loblaw, Wednesday, during a conference with analysts following the release of the company’s third quarter financial results, ending October 5, 2024.

He also added that almost 80% of transactions involving electronic devices were not accompanied by any other type of purchase. By purchasing a console, consumers clearly did not take the opportunity to buy shampoo, soap or acetaminophens. Note that for the moment, there are still electronic devices on the shelves. Online, some items are out of stock.

Cheese, biscuits and even pasta sold in pharmacies also seem less popular with consumers, many of whom turn to discount supermarkets to buy their food. To counter this effect, and encourage consumers to buy food in pharmacies, Loblaw has decided to reduce the price of some 400 products, announced Per Bank, president and CEO of Loblaw.

“Sales growth in the retail pharmacy sector outpaced that of the food retail sector during the quarter,” reads the company’s press release. Drugstore front-of-store revenue reflects continued strength in the beauty category, but was pressured by the company’s decision to remove certain product categories from shelves low-margin electronics as well as the decline in customer spending on everyday consumer products. »

For the retail pharmacy sector, sales increased 2.9%, while same-store sales from prescription drugs and health care services increased 6.3%. . There was, however, a 0.5% decline in same-store sales for front-of-store products.

Expensive pharmacy

Furthermore, Pharmaprix is ​​among the pharmacies where the average basket is the most expensive, according to a survey conducted by Verdict Santé. We analyzed the price of 25 common national brand items (toilet paper, toothpaste) at Jean Coutu, Brunet, Familiprix, Pharmaprix, Uniprix, Proxim and Accès Pharma from Walmart. The verdict: Accès Pharma would be the most affordable pharmacy with a basket costing $245, compared to $338 at Pharmaprix, the most expensive store.

Yves Rocher’s entry on the scene

On the other hand, many consumers who are fond of makeup, cosmetics and beauty products seem to be strolling the aisles of these two brands, since sales are growing. Loblaw, which manages Pharmaprix and Shoppers Drug Mart, has also just entered into a partnership allowing it to sell a range of Yves Rocher products in pharmacies. This is a first for this French brand which generally sells its products in its own stores.

“This partnership with Shoppers Drug Mart and Pharmaprix represents a major step forward in Yves Rocher’s growth strategy,” the French company said in a press release.

Maxi et T&T

In the food sector, Loblaw, which notably manages Maxi, Provigo and T&T, continues to open new stores. During 2024, 34 Maxi grocery stores will have opened their doors in Quebec, for a total of 187. Last week, the company also inaugurated its second T&T grocery store in Brossard, an Asian supermarket brand, in Quebec.

Results: profits up

Loblaw posted an increase in profit in the third quarter compared to the same period last year, in particular thanks to the cancellation of a charge linked to its President’s Choice bank after a decision by the Federal Court of Appeal.

The company announced that its net income available to common shareholders totaled $777 million, or $2.53 per share, for the quarter ended October 5. This result compares to a profit of 621 million, or $1.95 per share, in the same quarter last year.

Its turnover amounted to 18.54 billion in the third quarter, up from 18.27 billion a year earlier. Same-store grocery store sales rose 0.5%. Excluding the unfavorable impact of Thanksgiving timing, grocery same-store sales increased approximately 1.3%.

With The Canadian Press