Independent grocers in Canada feared they would go out of business with the upcoming merger of Loblaw Cos Ltd and Shoppers Drug Mart Corp. Canadian Federation of Independent Grocers President Tom Barlow told Canada's Competition Commissioner John Pecman that the plan to give big grocers 90% industry control threatened their survival. At present, big grocery chains has an 80% control of the industry.
The USD 12.4 billion merger between one of Canada's largest grocery store chain with the country's biggest drug store, however, received regulatory approval. This disappointed Barlow. He told The Star that he would be going to talk to James Moore, the Industry Minister, next. He said he hopes that Moore would stop the merger.
Canadian Convenience Store Association President Alex Scholten also said the merger was a big threat to the industry. He said, "They're trying to encroach themselves on what is our turf essentially." He added that convenience store retailers that would not be able to compete would go out of business.
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