TORONTO — Loblaw Cos. here announced March 23 it is purchasing a majority of Zellers’— a mass merchandise chain of the Hudson’s Bay Co. — prescription files for about $35 million.
The arrangement comprises prescription files from 95 Zellers pharmacies across the country, excluding British Columbia and Quebec. Loblaw has close to 500 pharmacies, which ensures there is a Loblaw banner store pharmacy neighboring each of the 95 locations and a team ready to welcome Zellers patients, Loblaw said in a statement.
"Our goal is to be the number one nutrition and health destination in Canada. We feed more Canadians than any other grocery retailer in the country and with this comes responsibility to help them make healthier food and lifestyle choices. Our pharmacy business plays an important role in this effort," said Michael Lovsin, senior vice-president, Health and Wellness, Loblaw Cos., in a prepared statement.
Besides strengthening its pharmacy position, the move is also viewed by analysts as defensive strategy against the expansion of Wal-Mart Stores and Target, which is set to open between 100 and 150 stores in Canada in 2013. Last year Target purchased 220 leasehold sites from Zellers as an entry into the Canadian market. Walmart Canada last year also acquired from Target 39 of Zellers’ leases.