Loblaw Companies executive chairman Galen G. Weston announces deal to buy Shoppers Drug Mart.

Grocery giant Loblaw buys Shoppers Drug Mart

Just a month after Safeway deal, more B.C. retail outlets to come under ownership of one parent firm

A $12.4-billion deal by grocery giant Loblaw to snap up Shoppers Drug Mart may further reduce retail competition in B.C.

Officials with the two firms denied that will happen, but the transaction does put another big chunk of B.C.’s retail landscape under the control of a single parent company.

In B.C., Loblaw operates or franchises dozens of stores under the Real Canadian Superstore, Extra Foods, T&T Supermarket and NoFrills brands, among others.

Its acquisition of Shoppers and its smaller urban stores extends Loblaw’s footprint into more densely populated B.C. markets.

Both firms say the deal will yield big benefits, including a bigger national retailing network for the more than 1,200 Shoppers outlets.

Shoppers Drug Mart will keep its brand name and operate as a division of Loblaw, but will expand its product lines, adding Loblaw PC brand private label and convenience food.

Shoppers’ Life brands are likewise expected to show up on the shelves of other Loblaw stores.

Officials promised they won’t close stores or eliminate loyalty points, adding the Shoppers Optimum and PC Plus loyalty programs will be cross-marketed across the group.

Shoppers shares were up more than 24 per cent Monday on the news, while Loblaw stock was also up 5.4 per cent. The market value of the two companies combined is up $3.1 billion from Friday’s close.

The deal still must be approved by shareholders.

It comes one month after a $5.8-billion deal by rival grocer Sobey’s to buy Canada Safeway stores.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

WEATHER: Strong winds, heavy rainfall and risk of a thunderstorm forecasted for Langley

Special weather statement is in effect for Metro Vancouver, including Langley

First rainstorm of the season pelting the Lower Mainland

Batten down the hatches as heavy rains, wind, and some localized flooding possible

Volunteers needed to help make Aldergrove shine

Business association will host downtown clean up day and will survey owners and residents on Oct. 3

UPDATE: Teen missing since early Monday in Langley has been found

Police released information about a 14-year-old girl who has been found safe

B.C. reports 96 new COVID-19 cases, one hospital outbreak

61 people in hospital as summer ends with election

Canada’s active COVID-19 cases top 10,000 as daily new cases triple over the past month

Dr. Tam repeated her warning to young people, who have made up the majority of recent cases

Abbotsford youth launches mental health awareness page

Abby Senior student Mia Skoone aims to provide information with @mentalhealth4youth account

RCMP investigating man reportedly hiking nude on Summerland’s Full Frontal trail

Potential charges against the man could include indecent exposure.

Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Grand jury indicts police officer in Breonna Taylor death

Officer Brett Hankison was charged with three counts of wanton endangerment

First 8 months of fatal overdoses in B.C. have now exceeded 2019 death toll

Nine people died every two days in August, BC Coroners Service data shows

Most Read