Loblaw Transforms Itself Again | Progressive Grocer

Retail Health Reimagined

Health and wellness is another key pillar of Loblaw’s ESG strategy.

The company connects its retail and health care businesses to help customers get well and stay that way. Its PC Health app provides virtual health care services through a network of care navigators, registered nurses, registered dietitians, physicians, physiotherapists and other allied health professionals. To date, there have been more than 820,000 downloads of the PC Health app.

The grocery chain has also performed more than 900,000 medication reviews to support improved patient health outcomes. Loblaw’s Wellwise by Shoppers platform is the largest Canadian retailer of home health care products and services, including medical devices and equipment, sleep therapy products, professional fittings for braces and supports, rental services, and in-home consultations. The company even retails medical cannabis using an e-commerce and mail delivery platform.

“I think what COVID has done, both for the Canadian consumer and then also for the public health care system, is it’s really helped everybody understand the complementary role that the pharmacists and the pharmacy can play on kind of basic health care delivery,” Weston noted during the earnings call. 

In March, Loblaw said that it was acquiring Toronto-based wellness company Lifemark for $845 million in cash, adding that the acquisition will help grow its retail health business. The news came after Shoppers Drug Mart had teamed up with the company last year to offer online bookings for physiotherapy and rehabilitation services. Lifemark’s integration into the retailer’s PC Health app gave shoppers access to health professionals in 300-plus rehabilitation clinics, as well as the opportunity to earn PC Optimum points for completing an eligible initial assessment.

“Lifemark joins Maple and dentalcorp in a growing group of trusted service providers featured on the PC Health app that will help Canadians get the timely health care services that they need,” said Jeff Leger, president of Shoppers Drug Mart Inc., when the partnership rolled out. “PC Health users can now book virtual doctor appointments, find dental and oral care specialists, physiotherapy, massage, and other rehabilitation service providers.”

“In the first quarter, Pharmacy Services continued their multiyear expansion, a strong indication of the relationships patients continue to build with their pharmacists as convenient and trusted health care partners,” Dufresne said during the earnings call.

Looking ahead to the rest of the year, Weston said on the call that the company is “particularly encouraged by its discount division, which represents 60% of grocery sales.”

“Our hard-discount No Frills and Maxi stores are a bellwether for customers seeking value,” he observed. “This is an indication of the Canadian consumers steadily increasing focus on value. We see similar signs in the performance of our market-leading private label program.”

After President’s Choice, Loblaw’s No Name brand is the second largest in the country, and sales are at all-time highs. 

“Yes, private label penetration is up above 30%,” Weston affirmed on the call. “It is growing notably faster than our non-private label products and programs. We’re kind of back to normal, or call it back to pre-COVID, price sensitivity, promotional sensitivity. But we’re watching it very carefully because prices are continuing to grow. Consumer behavior is shifting. It’s the usual things, smaller pack sizes, sensitivity to higher price points, all of that stuff.”