Over the summer, Loblaw, the largest grocery chain in Canada announced they were merging with Shoppers Drug Mart. They claim that this is a complementary joining and instead of “cutting into each others market shares” they would now be working together.
This huge merger means that Shoppers Drug Mart will offer certain Loblaw brands on their shelves such as Presidents Choice as well as a variety of fresh foods (something they lack), and gain access to a number of food suppliers. Loblaw, will acquire Shoppers praised loyalty points system for customers and can branch in to the ever growing health food market and pharmaceuticals.
Loblaw states that no Shoppers stores will shut down and no small grocery chains will be affected from the merger. However, I feel as though the suspicions of Loblaw aiming to be the Wal-Mart of Canada is definitely true. Partnered with Shoppers, their customer base will be the largest and perhaps most loyal in Canada.
So what will this mean for the inconspicuous grocery stores of Canada? Since their sales will be challenged as their customers are herded to the one-stop-shop locations of the new and improved Shoppers Drug Mart and the grocery giant Loblaw, they will probably face huge declines in sales, and be forced to choose new paths.
Article:
http://www.cbc.ca/news/business/loblaw-to-buy-shoppers-drug-mart-for-12-4b-1.1342108
Photos:
http://www.cbc.ca/news/business/loblaw-to-buy-shoppers-drug-mart-for-12-4b-1.1342108
http://www.financialpost.com/related/topics/Loblaw+brings+talent/4338381/story.html