Canada's Shoppers Drug Mart (TSE: SC) could be primed for a nice growth opportunity following the closure of Zellers' pharmacies in 2012. Though Target has announced plans to open its own pharmacies in 2013 once it begins expanding into Zellers' locations, the hiatus will give Shoppers and other pharmacies, including Rexall, some time to either poach or purchase the current client files.
Shoppers also recently announced an increase in overall sales of 2.1% over the third quarter of last year, and a rise in net earnings of 5%. Good news for investors who have been worried about earnings deflation in the prescription drug category due to new legislation in Ontario, Quebec, and British Columbia that have limited generic drug prices to 25% of the patented version.
Shoppers shares are up almost 12% in the last year and well ahead of an overall market, which is down 12%.
Full Disclosure: (Matthew Clarke currently owns or indirectly control shares in Shoppers Drug Mart).