Stocks & Investing
Stocks and Investing
Stocks and Investing
Mon, March 28, 2011 
NEW YORK, NY--(Marketwire - March 28, 2011) - With unemployment numbers remaining high and discretionary spending still low, drug retailers have struggled to regain their footing following the recession. Industry heavyweights such as Rite Aid and Walgreen have posted significant declines in their pharmacy segments as the outbreak of generic drugs continues to chew into their respective top lines. In order to offset a drop in pharmacy revenues, drug stores have begun to search for alternative revenue sources. The Bedford Report examines the outlook for companies in the Drug Store Industry and provides research reports on Rite Aid Corporation (
[ www.bedfordreport.com/2011-03-RAD ]
[ www.bedfordreport.com/2011-03-WAG ]
Last week Walgreen announced that it signed a merger agreement to acquire the online retailer drugstore.com for about $409 million. The acquisition will add about 60,000 products to Walgreen's online offering. Drugstore.com is one of the largest online health and beauty retailers, and Walgreen explains that those products are an important part of its growth strategy.
"Our acquisition of Drugstore.com today significantly accelerates our online strategy to leverage the best community store network in America by becoming the most convenient choice for health and daily living needs whether customers shop online or in our stores," said Walgreen's chief executive, Greg Wasson.
The Bedford Report releases regular market updates on the Drug Store Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at [ www.bedfordreport.com ] and get exclusive access to our numerous analyst reports and industry newsletters.
In recent quarters, both Walgreen and industry peer Rite Aid have posted diminishing revenues in their respective pharmacy segments. Rite Aid has been very vocal on blaming the surge in generic drugs for its revenue slump. For the month of February Rite Aid reported that same-store sales increased 0.9 percent in the pharmacy segment. At the front end of the store, same-store sales grew 1.1 percent.
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