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Loblaw buys Shoppers Drug Mart for $12.4 Billion

alexd

Administrator
Staff member
1. "Synergy, yada, yada, yada..."
2. No jobs will be lost*
3. yada yada yada


* asteRISK
 
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Big Harv

TRIBE Member
a lot of hurdles to get this deal to close...shareholders and the competition bureau particularly, not sure about the owner-operators of the pharmacies embedded in SDM. LCL may have to divest a good chunk of their stores.

Not surprising after the sobeys merger announcement last month, the arrival of target and the increase in walmart supercenters.
 

Persephone

TRIBE Member
Maybe prices at Shoppers will become more reasonable again. I've never understood the huge loyalty that some customers have with Shoppers Drug Mart, 3/4 of their products are overpriced. Who cares if you earn Optimum points for future use? money in your pocket now is worth more than any supposed future benefit you might get.

I predict a merger between Optimum and PC points eventually.
 
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rubytuesday

TRIBE Member
Maybe prices at Shoppers will become more reasonable again. I've never understood the huge loyalty that some customers have with Shoppers Drug Mart, 3/4 of their products are overpriced. Who cares if you earn Optimum points for future use? money in your pocket now is worth more than any supposed future benefit you might get.

I predict a merger between Optimum and PC points eventually.
Yeah I stopped shopping there regularly a while ago. They are great in terms of being open when you need advil or baby stuff in the middle of the night though.

How the hell has 3 years of accumulated Optimum points not even earned me a tube of toothpaste
1. Shop only on 20x the points days (update your optimum card and you'll get emails letting you know when this happens), this requires spending > $50 at a time though.
2. Redeem points only on "bonus" points days (again, if you update your profile you'll be emailed).
3. Profit (just kidding, as peresephone pointed out you're probably overpaying for things). I used to save my points up and get electric toothbrushes and cameras and lots of good stuff, that was fun.
 

acheron

TRIBE Member
The big deal here is the urban footprint - real estate is the most valuable part of takeovers in the grocery retail business - it is also key to finding new locations in heavily developed urban areas. The Shoppers acquisition means that Loblaws now has a huge inroad on prime urban real estate in most of Canada's major cities.

As for the Shoppers pharmacy franchisees - they will likely keep their businesses the way they are - I would be more worried if I were the pharmacist in a No Frills across the strip mall from a Shoppers Drug Mart. Loblaws will probably close the Pharmacies in many of their grocery stores where there is overlap, in order to capitalize on the retail space and reduce overhead. Shoppers is definitely the better name in the pharmacy market anyway.
 

Bacchus

TRIBE Promoter
The big deal here is the urban footprint - real estate is the most valuable part of takeovers in the grocery retail business - it is also key to finding new locations in heavily developed urban areas. The Shoppers acquisition means that Loblaws now has a huge inroad on prime urban real estate in most of Canada's major cities.

As for the Shoppers pharmacy franchisees - they will likely keep their businesses the way they are - I would be more worried if I were the pharmacist in a No Frills across the strip mall from a Shoppers Drug Mart. Loblaws will probably close the Pharmacies in many of their grocery stores where there is overlap, in order to capitalize on the retail space and reduce overhead. Shoppers is definitely the better name in the pharmacy market anyway.
great points.

I've thought myself what will happen with Shoppers higher dispensing fees. usually a few bucks more then Loblaws in my experience.
 
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mitsuko souma

TRIBE Member
1. Shop only on 20x the points days (update your optimum card and you'll get emails letting you know when this happens), this requires spending > $50 at a time though.
2. Redeem points only on "bonus" points days (again, if you update your profile you'll be emailed).
3. Profit (just kidding, as peresephone pointed out you're probably overpaying for things). I used to save my points up and get electric toothbrushes and cameras and lots of good stuff, that was fun.
great tips! thanks
My battery-operated toothbrush has really taken a beating and I'm due for an upgrade.
 

Chris

Well-Known TRIBEr
The big deal here is the urban footprint - real estate is the most valuable part of takeovers in the grocery retail business - it is also key to finding new locations in heavily developed urban areas. The Shoppers acquisition means that Loblaws now has a huge inroad on prime urban real estate in most of Canada's major cities.

As for the Shoppers pharmacy franchisees - they will likely keep their businesses the way they are - I would be more worried if I were the pharmacist in a No Frills across the strip mall from a Shoppers Drug Mart. Loblaws will probably close the Pharmacies in many of their grocery stores where there is overlap, in order to capitalize on the retail space and reduce overhead. Shoppers is definitely the better name in the pharmacy market anyway.
They also gain valuable insight into their customers if they keep Shoppers very successful rewards program and use it for their own customer base. BIG DATA!
 
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