Company Increases in Profit

Summary:

We all probably know Shoppers Drug Mart. In this article it is said that the store made a good profit because of market dicounts. It is mentioned that the cosmetics which are usually at the front was not what made the Shoppers into well-built results. Infact it was the medicines which made the company into profit. Last year results show that Shoppers achieved 49.1 percent increase in the precription sales of 48.3 percent in total sales using the strategy of marketplace discounts and other offerings. Their current increase in profit is 6.6 percent, which drove 9.7 percent increase in the medicine sales which is $1.48 billion. This also had and affect on their front of store sales. It improved by 6.2 percent. It is also said in this article that Shoppers sales increased by 8 percent.


Connection:

We were introduced to cash discounts in chapter 13. In this article it is included that using the strategy of market discounts and other offerings the company made good results. This is a different type of discount from what we learned. The cash discounts that we learned was if a company issues an invoice to its customer, if the customer pays the amount before the time the company has asked to do, the customer might receive what is called cash discounts. Getting cash discount is an advantage for customers because if you get one, then the price that you have to pay to the company will get decreased.

Conclusion:

In my opinion. I think that it is good that the company improved financially and should continue on for much better results. If something is in demand in the market, they will fulfill it successfully with no problems for us.


http://www.vancouversun.com/business/Shoppers+drug+sales+drive+company+profits/2213824/story.html