Saturday, September 23, 2006



Target follows the lead of Wal-Mart. I wonder who's next. Read here.

Bonds ties Aaron. Not the top one yet, just the NL record.

Howard Hits 58th.

The nation's first union of pizza delivery drivers

First Wal-Mart, now Target?! This is a disasterous race to the bottom! How will the pharmaceutical industry ever survive such an attack?

Just kidding. Kudos all around.
"Target and Wal-Mart can afford to sell the generics at cost because they are subsidizing them with profits from other higher-yield items"

"What they are trying to do is to get people into their stores. They are probably going to break even on the generics and offset those losses, they think, with the sales of higher-margin items in food, electronics, and so on,"

Of course. Which is exactly what drug stores like Eckerds, CVA, Walgreens, etc. have been doing for years. Grocery stores do the same thing by offering discounts to people who use their pharmacies.

All excellent for consumers.
But I think the main thing the big boxes will be able to do is sell at greater volumes, just like they do with all their other items, and force wholesalers to cut costs.
In fact, in the first article I read about Wal-Mart's plunge into the pharmaceutical market, representatives categorically denied all accusations that Wal-Mart would be taking a loss on prescription drugs or "subsidizing" their sale in any way.

"Wal-Mart, which has often sold selected goods at a loss to get people to shop in its stores, insisted that was not the case this time. Wal-Mart cited its more efficient distribution, as well the generic drug industry's desire to gain market share, for making such barebones pricing possible."

Katsnelson's accusations are unfounded; he probably got those sound-bites directly from Wake-Up Wal-Mart's PR people.
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