Miller’s Monday Morning Message

Andrew MillerMiller’s Monday Morning Message
presented by ACM Consulting Inc.

Andrew Miller on operational excellence, strategy, life balance and everything in between

Toronto – July 22, 2013
Since Loblaws announced this past week that it would be acquiring Shoppers Drug Mart, I thought I would bring back some ideas from a recent Monday Morning Message on successful acquisitions. I had identified three key things that organizations need to do in order to be successful in their acquisitions:
  • There needs to be a clear decision as to the future culture of the overall organization.
  • There needs to be a fit at all levels.
  • There needs to be an alignment of goals.
And I would like to add one more:
  • Don’t lose focus on your existing business. It’s easy to get caught up in all of the integration activities that need to happen with a large acquisition, but organizations need to ensure they don’t lose focus on the growth of the existing business and its customers.
These are important for Loblaws to remember as the acquisition of Shoppers Drug Mart will have a very complicated integration. On the surface, the acquisition looks like a great fit because the organizations compliment each other and are not major competitors. But when you look deeper into the acquisition, Loblaws will have some tough decisions to make:
  • Can they continue with two separate customer loyalty programs? If not, which program wins out and how will they transition over to one program?
  • Can they just replace existing Shoppers products with President’s Choice products?
  • Will there be any impact on the pricing? Can Loblaws offer products at the same price in both Loblaws and Shoppers locations?
  • How will Loblaws manage the transition of employees? Will there really be no changes or layoffs?
  • Will Loblaws need to close any stores because they are too close to each other?
This is a very interesting acquisition,” says Andrew Miller, president of ACM Consulting. “It really takes Loblaws to another level in terms of what it can offer to customers and how it can compete against the likes of Target and Walmart. The next 12 months will be essential to the success of the acquisition.”
 
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© Andrew Miller. All rights reserved. 2013.


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