In the wake of Loblaw Companies’ recent $12.4 billion acquisition of Shoppers Drug Mart – the largest grocery and drug-store chains in Canada, respectively – executives from both companies assured customers that the deal won’t affect the latter’s popular Optimum loyalty program.
The following message was tweeted from Shoppers Drug Mart’s official Twitter account: “Hi everyone, Canada’s favourite loyalty program will continue. No plans to change Optimum for our valued (at)shopprsdrugmart customers.”
In a conference call with investors, Loblaw President Vincente Trius said the deal “catapults us into a position that would otherwise take decades to reach alone.”
Shoppers Drug Mart says about 10 million people are registered to collect Optimum points, which reward shoppers with 10 points for every dollar spent.
During the call, executives from both companies said Loblaw’s PC Financial division, which oversees banking and credit card services, will undoubtedly “benefit” from Shoppers “incomparable” Optimum points program by being better able to target its products to customers.
“It’s really about adding significant customer insight and significant customer reach to a direction that we’ve already had, which is creating tailored, relevant offers to those individuals,” Shoppers Drug Mart President and CEO Domenic Pilla said. “By the combination of our insights, and access to customer information on their preferences, that we can really leverage that across a much larger base.”
Loblaw officials declined to say how many customers it has in its points program, but said that when it launched its new PC Plus points program earlier this year, it had a target of reaching about 15 million customers, which will be helped by the large base of Optimum members.
“It’s about reaching every Canadian family in this country,” Trius said.
In a company press release, Loblaw Executive Chairman Galen G. Weston touted the deal as a “transformational partnership” that 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,” he said. “This combination creates a compelling new blueprint for the future, positioning us to capitalize on important trends in society, from the emphasis on health, wellness and nutrition, to the imperatives of value and convenience."
In the press release, Trius added: "Our customer proposition is at the heart of this combination. Together, we will be able to significantly enhance the customer experience by offering even greater assortments, service, value and convenience while preserving the unique shopping experiences that make both companies leaders in their respective segments.”