Loblaw Companies Limited is increasingly looking to Shoppers Drug Mart’s pharmacy and healthcare business to drive growth, while testing changes aimed at making the chain’s traditional front store more competitive with value-conscious consumers.
During Loblaw’s second quarter of 2026, pharmacy and healthcare-services same-store sales increased 7.5 per cent. Front-store same-store sales rose by a more modest 1.3 per cent.
The difference points to an evolving role for Shoppers Drug Mart and Pharmaprix within Loblaw’s broader business. The retailer is expanding its pharmacy and healthcare network, opening new care clinics and smaller formats, and investing in systems intended to give pharmacists more time with patients.
Loblaw is also testing a refreshed food offer in selected Shoppers locations, with more products at lower prices. Buy online, pick up in store has now expanded to 500 locations.
Pharmacy and Healthcare Services Lead the Business
Drug-retail sales increased 6.1 per cent during the quarter, while same-store sales rose 4.6 per cent. Pharmacy and healthcare-services same-store sales outpaced the front store, supported by continued strength in specialty and chronic prescriptions. Prescription volumes increased 3.4 per cent on a same-store basis, while the average prescription value rose 5.5 per cent.
Loblaw President and CEO Per Bank said chronic prescription volumes continued to rise in the mid-single digits. Specialty pharmacy and healthcare services recorded strong double-digit gains.
The results reflect a broader role for pharmacists, whose responsibilities increasingly extend beyond dispensing prescriptions to include medication reviews, vaccinations and other services permitted under provincial regulations.
Loblaw has supported that shift by adding consultation and clinic space, opening new pharmacy locations and moving some routine prescription-filling work away from individual stores.
Three new Shoppers Drug Mart locations opened during the second quarter, contributing to a net increase of approximately 2.6 per cent in pharmacy square footage.
Loblaw said it remains on track to open approximately 75 stores across its businesses during 2026. Its previously announced investment plan included 34 new Shoppers Drug Mart and Pharmaprix pharmacies and care clinics.
GLP-1 Medications Add to Prescription Volumes
GLP-1 medications have become an important contributor to pharmacy performance.
Bank said stronger prescription volumes during the quarter were driven primarily by GLP-1 drugs, alongside continued strength in chronic-disease management and services such as medication reviews.
The market is beginning to change as lower-priced generic alternatives enter parts of the category. While lower prices could reduce the value of an individual prescription, Loblaw expects increased volumes to offset some of that pressure.
Chief Financial Officer Richard Dufresne said preliminary planning for 2027 indicated that GLP-1 sales could continue to rise at a double-digit rate in dollar terms, despite price reductions. Loblaw also expects gross-profit dollars and the gross-margin rate associated with the category to improve.
Executives said the category could support more patient education, medication management and ongoing chronic-disease care.
Bank said pharmacists at Shoppers can help patients understand available treatment options and support safe and appropriate use in coordination with other healthcare providers. That approach is reflected in a collaboration announced in July between Shoppers Drug Mart and Obesity Canada.
The initiative offers eligible patients access to a virtual weight-management program in participating provinces. Care may involve a nurse practitioner, a registered dietitian and the patient’s chosen pharmacist. Medication may be prescribed when clinically appropriate.
The collaboration presents obesity as a chronic disease requiring evidence-based care and ongoing support. It also shows how Shoppers is connecting pharmacy services with a wider network of health professionals.
Pharmacy Care Clinics Continue to Expand
Shoppers Drug Mart has been rapidly expanding its Pharmacy Care Clinic network. The company marked the opening of its 200th clinic in September 2025 and had said it expected to reach 250 clinics by the end of that year. Loblaw has not publicly confirmed a current 2026 total, although new pharmacies and clinics continue to open.
The network had grown considerably from early 2024, when Shoppers reported operating 74 Pharmacy Care Clinics and outlined plans for dozens more. Recent openings illustrate how the concept is evolving. Some clinics have been added to existing stores, while others are incorporated into new locations or developed as smaller pharmacy-and-care formats serving specific communities.
Bank highlighted one such location during Loblaw’s second-quarter call: a smaller-format pharmacy and care clinic in a new residential development in Toronto’s west end.
The company did not identify the project, but the opening suggests Loblaw can bring pharmacy and clinical services into growing residential areas without requiring the footprint of a conventional full-size Shoppers store.
Seven Pharmacy Care Clinics opened in Surrey, British Columbia, in September 2025. Services available through the locations included minor-ailment assessments, injections, vaccinations and medication reviews. Some included private or child-friendly consultation rooms and care concierges.
Shoppers also opened a clinic at the University of Ottawa in 2025, integrated with the university’s Student Health and Wellness Centre.
In Quebec, new Pharmaprix stores are being designed with space for chronic-disease management, vaccinations and other pharmacist-provided services.
The model will vary by market because pharmacists’ scope of practice and the funding of pharmacy services differ across Canada. Loblaw can still use the Shoppers and Pharmaprix networks to add healthcare capacity where provincial regulations and local demand support it.
Centralized Filling Supports Patient Care
The clinic expansion is also being supported by changes behind the pharmacy counter. Loblaw operates seven Central Pharmacy Services facilities across Canada. The network supports more than 1,110 pharmacies and processes approximately 70 million prescriptions annually.
Moving repetitive filling work away from individual stores can give pharmacists more time for consultations, medication reviews, vaccinations and chronic-disease services.
The strategy therefore involves changes to pharmacy operations as well as the addition of consultation rooms and clinics. That infrastructure may become increasingly important as prescription volumes rise and provincial governments broaden pharmacists’ responsibilities.
Shoppers Tests More Food at Lower Prices
While pharmacy and healthcare services are leading the business, Loblaw is also examining how the Shoppers front store can become more useful for everyday purchases.
The company is piloting a food refresh in selected locations. Bank said the updated stores carry more food SKUs at lower prices. Seventeen stores had completed the changes by the time of Loblaw’s second-quarter earnings call, with another 11 underway. Bank indicated that the pilot would soon extend to more than 30 locations.
Loblaw has not identified the participating stores or disclosed detailed performance figures. It has also not specified which food categories are being expanded or whether the changes include new layouts and fixtures.
Bank said the early results were encouraging, while the company continued to review and adjust the offer.
The pilot reflects Loblaw’s effort to make Shoppers a more compelling destination for fill-in grocery and convenience purchases, particularly while consumers remain focused on value.
Shoppers stores are often located in established residential areas and operate for longer hours than many traditional retailers. A broader and more competitively priced food assortment could support quick grocery trips, evening visits and purchases made alongside prescriptions or healthcare appointments.
Loblaw has described the initiative as a pilot involving additional products and lower prices within the existing front-store business. It has not positioned Shoppers as a discount grocery banner. The company is expected to provide further information about the initiative at its investor day later in 2026.
Beauty Remains Central to the Front Store
Beauty has long helped distinguish Shoppers from conventional pharmacies and convenience retailers. Prestige cosmetics was one of the stronger categories during the second quarter. Over-the-counter products and baby merchandise also performed well. Shoppers operates approximately 440 Beauty Boutique locations across Canada, giving the company a substantial presence in prestige and premium beauty.
The food pilot is being introduced within a broader mix that includes beauty, personal care, over-the-counter health products, baby items, household essentials and seasonal merchandise. Beauty and health-related categories remain central to the front store as Loblaw works to strengthen food and convenience.
Loblaw also reported that shrink at Shoppers had returned to pre-pandemic levels. Management said it remained focused on further reductions but was pleased with the progress made.
Digital Pickup Reaches 500 Stores
Shoppers has expanded buy online, pick up in store to 500 locations. The service allows customers to order front-store products online and collect them from a participating store. Bank said the program provides added convenience while generating incremental purchases during the pickup visit.
Customers arriving to collect an online order or attend a pharmacy appointment have another opportunity to shop while they are in the store, whether that involves filling a prescription or purchasing beauty, food or household products.
Digital services also extend to pharmacy and healthcare. Shoppers customers can use online tools to manage prescriptions, receive reminders and book selected appointments and services. Digital ordering and appointment tools give customers another way to engage with the store and provide Loblaw with more opportunities to connect pharmacy, healthcare and retail activity.
A Larger Role in Community Healthcare
The expansion comes as pharmacists take on more responsibility within Canada’s healthcare system. Many Canadians continue to face difficulty accessing timely primary care. Pharmacies are widely distributed, frequently open outside conventional medical-office hours and staffed by regulated healthcare professionals.
Shoppers Drug Mart and Pharmaprix operate more than 1,300 retail pharmacies across Canada, giving Loblaw a network that reaches major cities, suburban communities and smaller markets.
Provincial governments have gradually expanded pharmacists’ authority to assess and prescribe for certain minor ailments, administer vaccinations, renew some prescriptions and provide other clinical services. Those responsibilities vary by province and do not replace physicians, hospitals or comprehensive primary care. They do allow pharmacies to provide selected services closer to where patients live.
For Loblaw, the expanding scope of pharmacy practice creates an opportunity to use an established retail network as a larger part of its healthcare business.
The Drugstore Format Continues to Evolve
Shoppers Drug Mart’s future may look different depending on the market. Some locations will continue operating as large beauty, pharmacy and convenience destinations. Others may take the form of smaller pharmacies and care clinics embedded in residential developments or institutional settings.
The healthcare strategy is already delivering measurable results, while the front-store food pilot is still taking shape. Together, the initiatives point to a drugstore format that continues to evolve, combining pharmacy, healthcare, beauty and convenience retail in ways that reflect changing consumer expectations and the expanding role of pharmacists in communities across Canada.
