The big box stores are cleaning up. Look at the numbers for Costco and even BJ's. And, of course, Wal*Mart... Feb SSS up 2.6% against target of 1.1%. And a major, cited contributor? Pharmacy!
WMT slowed its pace of new store openings to improve shareholder value and keep costs low. Then they increased their share buyback to $15 Billion. And how'd their share price do? Trading near a 52 week high.
Then there is Walgreens who has done... Oh, nevermind. No news to report, except management cashing out options and running for higher ground.
And, to think that these two equities had almost identical share prices when I made my "Two Trains Running" analogy, some 6 months ago. Looks like the WAG Express fell off a trestle bridge into the Wag Bag Canyon.
The entire small box retail drug sector got pounded today. Wal*Mart had another huge day. Care to know why?
Wal*Mart is being managed for S/P enhancement in a downturn economy. Their actions scream "enhanced value for shareholders" and the result is seen in the upward pricing action. They have even slowed new store growth... not stopped it, but slowed it... to be able to deliver meaningful returns to the investors that provide CAPITAL for their future prospects.