re: News: API opens new stores despite profit... I think that...

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.