Magstar TOTAL Retail - Value Drug Mart Press Release

Magstar Inc. is pleased to announce that Edmonton based Value Drug Mart Associates Ltd. has selected Magstar’s fully integrated TOTAL RETAIL® software suite to replace the legacy systems at its central offices and all member owned retail pharmacy locations.

Value Drug Mart Associates Ltd. was founded in 1978 to provide marketing and advertising assistance to the independently owned member pharmacies. Today, Value Drug Mart has an 85,000 square foot central office and warehouse distribution centre, and provides product distribution, merchandising support; marketing programs, business seminars and other professional services for fifty one (51) independently owned Value Drug Mart pharmacies and thirty (30) Apple Drug pharmacy operators.

Value Drug Mart (VDM) wanted to improve its supply chain replenishment practices but found it virtually impossible to consolidate store sales information due to the different POS applications and data formats used by the individual stores. It was becoming increasingly difficult to support the various legacy POS applications installed in the independently owned stores.

Value Drug Mart recognized the need to implement fully integrated head office and store systems that could provide all of the features required by a wide base of users while allowing it to capture the relevant information required to make sound business decisions.

After evaluating several software vendors Value Drug Mart chose Magstar’s TOTAL RETAIL® software suite for the head office, in-store back office and POS requirements. Rollout for the Linux based TOTAL RETAIL® system is scheduled to commence in 1Q03.

Gary Penner, Retail Technology Coordinator at Value Drug Mart Associates said, “By inviting all of our members to operate on a similar platform, Value Drug Mart Associates Ltd. has an opportunity to grow as a cohesive unit. There has always been strength in numbers - and by allowing everyone in our organization to share their results with the rest of the group, the power of the group surpasses the power of individual stores. We are excited about the possibilities ahead of us.

The talent pool at Magstar is the most impressive I've seen. Each and every individual who gets involved in a project not only understands the organization's requirements as far as the software application goes, but also understands retail. A win-win combination not commonly found in other software vendors."

Paul Becker, Director of Marketing at Magstar, said: "We are very pleased to be selected by Value Drug Mart Associates. Delivering relevant and timely data to decision makers is essential for effective management of the underlying business processes. Value Drug Mart will collectively benefit with TOTAL RETAIL® integrating activities between the central office and distribution centre and all the retail locations.

Functional integration of the enterprise enables effective inventory management so that you can consistently provide the right product at the right place at the right time. This is key to meeting consumer needs and expectations, consequently developing both brand image and customer loyalty.

Standardized store systems will facilitate store support and give each Value Drug Mart pharmacy owner the ability to deal with the daily details and to make timely and informed management decisions.”

About Magstar Inc.

Founded in 1985, Magstar develops and provides fully integrated, enterprise-wide retail application software and professional services to a variety of small to medium sized chain operations in the US, Canada and the Caribbean Basin.

TOTAL RETAIL® integrates business processes across all operational departments and divisions: Finance, Buyers, Stores, and Operations, including warehouse/distribution, call centers and the Internet. As one application updates its information, related areas and functions are dynamically refreshed to provide consistent and up-to-date centralized information on demand.

Services include business consulting, work process and gap analysis, custom software development, system hardware, installation, training, and 7x24 support with remote facilities management.

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