What are the risks of increasing the food business in drugstores?
Mainly due to the decline in gross profit and rising losses. The drug store is not familiar with the operation and management of fresh produce. This is a short board, and it is a test for capital strength if there is new investment. In the past, drugstores basically had no inventory backlog, and they rarely produced cargo damage. The problem of fresh foods would increase the operating pressure of drugstores.
An inspiring case is that Hefei (ツルハ), the largest brand in the cosmeceutical industry, acquired the largest Xinglintang Pharmacy Bureau in Shizuoka Prefecture. The food sales of Xinglintang accounted for 45%, and the store area was about 1,000 to 3,000 square meters. The variety of food is more abundant, similar to the food supermarket, the acquisition of Xinglintang Pharmacy, the main purpose is to absorb the experience and wisdom of food management.
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