Market Visit Report – Shoppers Drug Mart Fresh Food Pilot

Last year, Loblaw closed its deal to purchase Shoppers Drug Mart for $12.4 billion. This deal changed the retail landscape and recently Shoppers Drug Mart is changing the way it does business.

Shoppers Drug Mart has begun expanding its fresh food portfolio in select Toronto-area and Regina stores. Our Field Agents took some pictures of the expanded food portfolio in Regina this week so we could view the differences.

The new ‘Food You’ll Love’ section contains a variety of fresh produce including apples, bananas, oranges, pineapple, peppers, cucumbers, onions, carrots, tomatoes and much more.

Other sections in-store include the deli, cheeses, vegetarian, prepared foods and soup & salads.

Walgreens in the U.S. has been testing a similar store format as a drugstore with an expanded fresh food section. These stores are getting a jump on traditional grocery stores by providing an expanded food assortment in convenient neighbourhood locations.

With almost 1300 locations across Canada and nearly 900 of those stores including an expanded food section, SDM could be well positioned to grow its share in traditional supermarket categories such as fresh produce.  Given the overall slow growth of most grocery categories, from whom will SDM be stealing share?

To view the full report please click here.


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