Shoppers Drug Mart sold to Loblaw

Another shake up in Canada's major retail scene, with the announcement that Loblaw, Canada's largest chain of supermarkets will purchase Shoppers Drug Mart for 12.4 billion dollars.

The announcement made on Monday morning, will mean that the giant grocery chain picks up 1,200 drug stores across the country, including the Rupert Square location in Prince Rupert.

Shoppers Drug Mart will keep their name and operate as a separate company, however for Rupertites once the takeover is complete it will mean the return of many familiar items (last seen during the Extra Foods Days) to the grocery section of Shoppers. The plan from Loblaw is to introduce  a number of Loblaw brand items and private label offerings onto the Shoppers shelves.

The move will allow Loblaw to gain access to a larger market share for those products that are standard fare in their larger grocery stores.

In their press release on the acquisition, Loblaw stressed the new blueprint that the Shoppers locations will provide for Loblaw to serve smaller urban centres, while building on the strengths and familiarity that the Shoppers brand provides.

The acquisition is subject to shareholder and regulatory approval, no time frame was outlined as to the length of time that it will take to bring the two companies together.

Media reports on the commercial sector shake up can be found below:

CBC-- Loblaw to buy Shoppers Drug Mart for $12.4 B
National Post--  Loblaw to buy Shoppers Drug Mart for $12.4 - billion
Toronto Star-- Loblaw to acquire Shoppers Drug mart for $12.4 B