Increasing concentration in Canada’s grocery industry is starting to raise red flags. When Loblaw Cos. completed the purchase of Shoppers Drug Mart (Pharmaprix in Quebec) last year for $12.4 billion, the federal Competition Bureau approved the deal on condition that Loblaw divest some 27 pharmacies.
Now, the federal regulator is conducting an investigation into Loblaws pricing practices and relationships with suppliers amid concerns that some of its practices might be anti-competitive.
Given the move by Shoppers into grocery retailing, the bureau investigation launched last fall highlights fears about the impact of consolidation on both consumers and suppliers.
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Peter Hadeke- Montreal Gazette – May 20, 2015.