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Business trends

Japan drugstore stocks slide as growing expenses spook investors

Store openings slow as labor and real estate costs weigh on the sector

Many Japanese drugstores are increasing their food offerings.

TOKYO -- Drugstore shares have been trending lower on the Tokyo stock market this year as rising labor costs cast shadows over their strategy of aggressive store openings. 

Selling pressure grew after Cosmos Pharmaceutical downgraded its earnings projection on Jan. 11. The company, based on the southwestern island of Kyushu, forecast that its net profit will shrink 16% on the year to 15.3 billion yen ($143 million) in the current year ending May.

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