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Child Health and Safety Product Distribution Channel Changes
PR Newswire
posted: 4 HOURS 5 MINUTES AGO
WESTON, Fla., Aug. 14 /PRNewswire/ -- Kidz-Med, Inc. (the Company), a subsidiary of American Scientific Resources, Inc. (Pink Sheets: ASFX), is announcing a change in the distribution channels of its flagship product, the Kidz-Med Thermofocus.
Recently, the Company has learned of Walgreens' intent to cut many SKUs out of their planograms going in to the 2009/2010 year, including the Kidz-Med Thermofocus. To the Company's knowledge, this decision is solely the retailer's and is based upon economics. The retailer continues to maintain interest in its relationship with American Scientific Resources, Inc., the infrared thermometer and in other ASR products.
Fortunately, management has made numerous contingency plans. Around the same time, the Company received reliable information that another distinguished baby specialty retailer has placed an initial order of the product. Meanwhile, renewal orders from Walgreens are expected to fall off as early as the end of August. No word has been given as to when reorders might resume.
Dr. Christopher Tirotta, CEO of American Scientific stated, "We continue to have a strong working relationship with Walgreens, and they have indicated interest in future products that Kidz-Med would like to bring to market. We look forward to the day when the Kidz-Med brand can once again be displayed in their stores nationwide."
The economical environment has forced most every industry to revise short-term strategies and future plans; the retail industry has faced unique market conditions over the past recent quarters.
As Myron E. Ullman, III, and, Robert A. Niblock (Chairman of the National Retail Federation and the Retail Industry Leaders Association, respectively) said in a joint statement last spring, "This is a historic time for our industry. The challenges and opportunities before our members are unprecedented."