The Shoppers Drug Mart store here is up for sale.
The sale is part of a condition imposed by the Competition Bureau in a consent agreement with Loblaw Companies Limited (Loblaw) to remedy competition concerns related to the company’s $12.4-billion purchase of Shoppers Drug Mart Corporation (Shoppers).
Tammy Smitham, Shoppers vice president of communications, confirmed the Mount Forest store is one of 18 stores and nine Loblaw-run pharmacies across the nation to be sold as part of the deal.
“The idea is the store will be sold and operate as a pharmacy,” Smitham said, referring to the plan to sell the store to an independent operator.
Smitham explained the reason for the sale is because of concerns about the potential for unfair market competition if Loblaw owns the downtown Mount Forest store and also operates a pharmacy at its No Frills grocery store at the north end of town.
Loblaw vice president of corporate affairs and communications Kevin Groh said the company is “working on a few options for the stores we must divest.
“We expect the process of identifying purchasers and selling the operations to take several months.”
In an email to the Advertiser Groh said, “In terms of identifying the markets where divestitures were required, the Competition Bureau reviewed our markets and concluded where our company would have excessive market power because of the acquisition.
“Where it was determined we would have too much market power, we are required to sell operations. Obviously we wish we could have kept all locations, but we respect the role the bureau plays in maintaining competition in markets.”
Groh added, “Ultimately, the bureau requires that another company operate the store at the current Shoppers Drug Mart location (in Mount Forest). After the sale, our brands and name will no longer appear. Until then, the same brands and service will continue and customers shouldn’t notice any difference.”
Gabrielle Tassé, of the Competition Bureau, confirmed the details of the consent agreement.
“We expect all of the stores to be sold to a competitor to Loblaw and Shoppers, as the bureau carefully considered the competitiveness and viability of these stores,” she said.
Tassé declined to comment on any possible buyers because the bureau, by law, conducts its work confidentially.
Smitham said it could take months before a deal is in place to sell the Mount Forest store.
The 18 stores listed for divestiture include 14 Shoppers locations and four under Loblaw banners. Others in the Wellington region include a No Frills store in Elmira and a Loblaw pharmacy in Listowel.
