Fa. Anton SchleckerEhingen, Germany

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Schlecker Competition

Now Viewing Schlecker's competition in: Drugstores (primary)

Recent Developments

New Law Takes Aims at Illegal Online Pharmacies - The Ryan Haight Online Pharmacy Consumer Protection Act requires patients who buy drugs online to provide proof of an in-person medical evaluation and valid prescription. The bill, named for an 18-year-old who died from an overdose of prescription medication obtained online, also requires Internet pharmacies to register with the FDA, just as traditional pharmacies must. The law is being applauded by the National Association of Chain Drug Stores because it says that these "rogue" websites threaten the health of consumers and tarnish the reputation of legitimate online commerce.

Companies Re-label OTC Meds for Young Children - Makers of OTC cough medicines, a major product on drugstore shelves, have agreed to limit marketing these products to young children. At the urging of the FDA, the industry will also stop making various "infant" products and re-label other products to make it clear they shouldn't be used in young children. The announcement follows an FDA review that shows that most safety problems associated with the products are in young users. The changes affect dozens of brand name and generic products; some 95 million packages of children's OTC cold and cough medicines are sold in the US annually.

Fuel, Food Take Priority Over Meds - US consumers are trying to save money by foregoing prescription drugs, according to a recent Wall Street Journal article. The overall decline in prescriptions, according to IMS Health data, is less than 1 percent, but is significant because it's the first downturn after more than a decade of steady increases. From 1997 to 2007, the number of prescriptions filled in the US increased 72 percent to 3.8 billion. Health experts worry that if the trend continues, manageable conditions could escalate into major medical problems, which in turn could raise the nation's collective healthcare bill.

Competitive Landscape

Demand is driven by the aging of the US population and advances in medical treatment. The profitability of individual companies depends on access to medical insurance groups. Large companies have economies of scale in purchasing and in access to large groups of customers. Small companies can compete effectively through convenient location or special merchandising. Average annual revenue per employee is close to $200,000.

Drugstores Industry Forecast

from Hoover's/D&B subsidiary First Research

US personal consumption expenditures for drug preparations and sundries, which are major indicators for drug stores, are forecast to grow at an annual compounded rate of 10.5 percent between 2008 and 2013.

Consumer Drug and Sundries Spending Growth Strong

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.

First Research Opportunity Rating

The First Research Opportunity Rating is First Research's estimate of industry performance vs. industry risk over the next 12 to 24 months.

  • Demand: Increased sales of non-drug items
  • Economies of scale favor chains
  • Risk: Insurers squeeze drug prices

Industries Where Schlecker Competes

  • Retail
    • Drug Stores & Pharmacies (primary)
    • Tobacco Retail
  • Food
    • Candy & Confections

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