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Article: GM's disproportionate impact on profitability. (Marketplace 2002/Corporate Profiles).(general merchandise in drug stores)(Brief Article)
- Article from:
- Chain Drug Review
- Article date:
- June 24, 2002
CopyrightCOPYRIGHT 2002 Racher Press, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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NEW YORK -- Despite accounting for a relatively small portion of chain drug stores' overall sales, general merchandise is a vital component of the trade class' mix.
While pharmacy sales are soaring, the margins prescription drugs offer remain far below what they were a decade ago, prompting every drug store operator to explore new ways to boost profitability. General merchandise, they are finding, helps them accomplish this goal.
But besides offering higher margins than most other categories, general merchandise serves as one of chain drug stores' prime traffic generators.
Consumers will often turn to their neighborhood drug stores for such ...