re: News: API opens new stores despite profit...
I think that you have to be careful with respect to the understanding of Priceline Stores and Priceline Pharmacy stores.
Pricelines stores do not have scheduled medicines or prescriptions, ie: not past band aids, headache pills and vitamins. Every item they stock is in competition with Target, Kmart, WOW and Coles etc etc.
Proceline Pharmacy stores are a franchise which is owned by a Pharmacist. Api gets a franchise fee for the priceline brand and makes profit on the warehouse distribution, but the profit largely retains with the owner/franchise owner who must be a pharmacist.
The growth of stores increases the warehouse business, lowers fixed costs per activity and increases franchise fees.
API Price at posting:
43.7¢ Sentiment: None Disclosure: Not Held
