“Mini-pharmacies” help Loblaw compete

Article Excerpt

LOBLAW COMPANIES LTD. $43 (Toronto symbol L; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 277.3 million; Market cap: $11.9 billion; Price-to-sales ratio: 0.4; Dividend yield: 2.0%; SI Rating: Above Average) is testing a new “minipharmacy” for its smaller supermarkets. Right now, it has in-store pharmacies in about half of its 1,000 stores. The company feels in-store pharmacies help it compete with pharmacy chains that are expanding their grocery departments, such as Shoppers Drug Mart. As well, new computers will speed up prescription processing, and give Loblaw an advantage. Loblaw is a buy. buy…