We Can Medicines is adopting a cautious stance toward its net store increase target this year, focusing on replacing weaker locations with stronger ones. The company aims to have a total of 175 stores by year-end, a modest increase of five stores compared to last year. Aside from new openings, 2 to 3 existing stores will undergo consolidation or adjustment. The company acknowledges that the past three quarters were operationally challenging due to costs related to store closures and salary adjustments, but expects gradual improvement going forward, aiming to return to a normal growth trajectory.

Last year, We Can Medicines operated about 170 stores under its brand. Although it previously anticipated double-digit net store growth annually, the need to integrate existing locations has led to a more cautious outlook this year. Of the projected net increase of five stores, We Can’s own pharmacies remain the primary focus, targeting locations of 60 ping (approximately 198 square meters) or larger. Meanwhile, Sapporo Drugstores’ new openings are mainly concentrated in department stores, with recent entries into Eslite branches in Tainan and Banqiao. Negotiations with other shopping malls and department stores are ongoing, with one additional store expected to open before year-end.

Regarding product categories, We Can Medicines will continue to emphasize senior care products, including related health and medical supplies. Considering regulatory requirements, Sapporo Drugstores will focus on strengthening daily necessities imports to boost single-store revenue.

Due to market competition and internal restructuring, We Can’s operating profit margin turned negative starting from Q2 last year. However, in Q1 2024, the negative margin narrowed to 1.41%, marking a three-quarter low. The company anticipates that core operations will improve in Q2 and expects gradual quarterly progress throughout the rest of the year.

Resource: 佑全今年淨增店趨謹慎；Q2後營運盼逐步回升