Shoppers, Canada’s largest retail pharmacy chain has recently merged with Canada’s largest food retailer, the company Loblaw Co, under a $12.4-billion deal. This action has varies effects on different stakeholders.

For both Shoppers and Loblaw, this takeover is an extremely beneficial growth opportunity as they can use each other’s built-up brand reputation to increase their customer sources. For Shoppers, with the pressure of increasing cost resulted from regulatory changes in drug reimbursement programs as well as increasing competition, being taken-over by Loblaw allows it to increase its profit.

Moreover, to explore the effects on consumers and consumption trend, as mentioned in the article, “Shoppers’ president and chief executive Domenic Pilla said the Loblaw deal will change the retail landscape in Canada.” As foreign competition has become highly competitive within Canada’s retail landscape, this takeover can be seen as a development of new store concepts or brand strategy innovation.

However, the concern from this takeover is the pricing of the drugs from Shoppers. In comparison with other independent pharmacies, Shoppers’ general pricing tends to be higher than average. It is important for Shoppers, or Loblaw after the takeover, to examine the price in order to maximise profits.

Work Cited:

http://www.ctvnews.ca/business/shoppers-drug-mart-profit-dips-on-loblaw-takeover-costs-1.1539575

http://globalnews.ca/news/962385/shoppers-loblaw-behemoth-eyes-buying-up-more-pharmacies/