The Shoppers Drug-Mart Corporation: Largest Retail Pharmacy Chain Across Canada

About the Company
The Shoppers Drug Mart Corporation is known as one of the largest retail pharmacy chain across Canada, with their headquarters located in North York, Toronto. In 1962, it was founded by a pharmacist with the name of Murray Koffler, and as the years went by, the company continued to evolve and expanded to 1253 stores. The first Shoppers Drug Mart opened in Toronto, Ontario, and Murray Koffler expanded his mind of innovations to merge mass merchandising and self-service into the format of retail pharmacy. With his total belief of creating an organization of pharmacies without having to sacrifice any personalized service, he then created the Associate Concept, which gives professional pharmacists to combine their
given knowledge, independent business ownership, and their services under the support of a corporate entity. Thus, majority of the stores is a combination of health, beauty, and food. Shoppers Drug Mart has successfully continued to have their sales merchandise such as over-the-counter medication, cosmetics, perfumes, and foods as it captured a weighty amount of share in the market. The company also owns 57 medical clinics under the name of Shoppers Simply Pharmacy, and six different beauty located stores under the name of Murale.

Organizational Structure
On July 15th 2013, it was announced that Shoppers Drug Mart was officially owned by the Loblaw Companies Limited, as the company closed a deal of 12.4 billion dollars for Shoppers Drug Mart. The merge was to develop more of a valued and unique retailer chain as it can deliver different product offerings. The strategic combination of the two largest retail pharmacy and grocery chain will evolve the retail landscape and give the consumers a wider view of of choices, and will give the shareholders new growth opportunities. “This transformational partnership changes the retail landscape in Canada. With scale and capability, we will be able to accelerate our momentum and strengthen our position in the increasingly competitive marketplace,” said Galen G. Weston, Executive Chairman of Loblaw.

Retail Format - Product Assortment and Store Design/Layout Shoppers Drug Mart, the leading drugstore of Canada provides customers with a broad range of products and services.The located stores retailing mix are presented with different strategic techniques and displays.
Starting off with their products, the company gives their customers a wide range of varieties to choose from. They sell cosmetics for all the beauty lovers, over-the-counter medications for the customers who are in immediate help, and even books or food. Their prices are known to be moderate, but it varies, depending on the item. Different products require different prices, and of course, it will completely differ from the prices that are given in Walmart, or Target.
The personnel is quite popular in Shoppers Drug Mart. Each employee have quite a skill or knowledge that they can deliver to the customers. Majority of the sales associate must have clear information on a specific topic, for example, if a customer was to walk into the beauty section, there will be different sales associate that may help the customer on which mascara to use, or which foundation matches their skin tone, etc. Usually the services are great. The employees are full of energy and knowledge, and their personality will definitely persuade customers to buy their
products.
The presentation in each located stores may be different. Usually, the large stores are already given everything, such as beauty products, health services, food, books, cards, etc. The smaller located stores are usually provided with just health and food. The larger stores are neatly organized, with a beauty section full of cosmetics, one side would be full of products that are more expensive, and another side would be products will lower prices. There would also be expensive moisturizers such as Biotherm, Neostrata, or Lancome, and on the other side would be less expensive products such as Ponds, or St.Ives etc. Another section of the store would be the health services/pharmacy where customers can purchase their medications over the counter. Usually on side of the entire store would be the food section, where snacks and drinks are displayed for the customers.
Shoppers Drug Mart are located all across Canada, from Toronto to Quebec. The located stores can be found inside a mall, or individually outside urban areas. It is rarely found in rural areas because the company needs to be placed in an area where they are sure to attract many consumers. Last but not least, the promotion is definitely a trademark for the company. Their optimum program is where customers may purchase everyday essentials or generally anything, and as they pay, they get their Optimum Points card scanned and receive points from the products that were purchased. Consumers may be rewarded and once the customers reach up to an exact number of points, they may purchase anything free, as long as it’s worth the same amount of what they have in their card. On the image to the right, it displays how much the points are worth. For example, if a customer was to have 50,000 points in their Optimum Points Card, they may use them and spend up to $85 of products without physically having to use any money that belongs to them. Other promotions that have are bonus points on specific items that are on sale, or gift cards from their company, gas, or Tim Hortons, if customers spend 50 or 75 dollars and more. Shopper’s Drug Mart most likely has a layout of a grid/straight design because of the way their items and services are organized. Majority of the customers would shop the entire store when they enter in order to find exactly what they’re looking for. For example, if a customer wanted to go to to the pharmacy section, he or she would have to walk around to find it because it’s usually located in the back. Each specific section are located vertically, which forces the customers to walk the entire store to find what they are looking for.

Target Market Who are the consumers that they are targeting?
Well, generally, Shopper’s Drug Mart geographically aims for consumers that are in urban areas in Canada to maintain an ongoing business within the employees and the consumers; whereas, if they were to be located in rural areas, it may lead to liquidation because of how spacious and empty those areas are. Demographically, the company attracts more females than males, because of the large beauty section they contain. Drugstore or high-brand cosmetics, skin care products, and perfumes are what drags all females into the store, specifically the age of 14-30. Shopper’s also targets any customers that requires health services or those who needs to do a quick grocery shopping. The company directs their marketing efforts to generally anyone, but specifically, it tends to attract more females and customers with the age of 14 and
higher.

International Retail Strategy and Financial Performance There are no current information that states if the company will be expanding internationally out of Canada, therefore, as of right now, it is globally located across Canada only. In 2012, Financial Post has stated that the company had a rise in their earnings for the first quarter of 3.7% in just their beauty and food sections. They earned an extra million ( an amount of $119M) in just one year which is 56 cents per share in the period that ended in March 2012. During the second quarter, the company earned a profit of $149M, which is converted into 71 cents per share. It was stated that the company is gradually increasing each year through its pharmacy and merchandise items.