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Company Merges From A Consumer Stance

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Recently it was announced that a large grocery chain called Loblaws here was merging with another large company called Shoppers Drug Mart and it was kind of interesting to hear some of the reactions. For example, some people didn’t think it was a big deal from a consumer point of view whereas others immediately thought this would result in higher prices due to less competition.

My first thought was that merges like these usually mean more cross promotional items. For example, both companies have its own line of products where they will now probably distribute them in each other’s stores. So in that sense it is more about the change of product variety where it wouldn’t be so far fetched to think that they will drop certain product lines to make room for its own products.

I remember that Loblaws company acquiring an Asian supermarket here called T&T for example and the only real change in operations I saw was that each place carried more variety of western or Asian products as a result. The funny thing I notice is that there are usually more price discrepancies between the company owned products after depending on which store you are buying it from.

You would think they would make the prices universal so that the company isn’t competing with itself. Then again, I suppose they are introducing products that they normally didn’t carry to consumers who wouldn’t normally buy them anyways. So there is a good chance that those consumers are not knowledgeable on what the regular price for those items would be.

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