B.C.’s largest drug store chain is likely to soon merge with a similarly structured national franchisor.
Langley-based Pharmasave CEO Sue Paish told Business in Vancouver that her 425-store company is forming a strategic alliance with Pharmachoice, a 275-outlet Canadawide drug store chain that has regional head offices in Saskatoon, Saskatchewan and Dartmouth, Nova Scotia.
The two companies recently launched the joint venture PharmAlliance Inc. as a strategy to buy jointly from suppliers.
“It is a strategic alliance leading to the eventual integration,” Paish said.
“The vehicle PharmAlliance will enable the two organizations to jointly negotiate with suppliers so we’ll be negotiating on behalf of 700 stores rather than on behalf of 425 stores or 275 stores."
The theory is that bulk buying of everything from crutches to shampoo to prescription medicines will lead to lower prices. It will also make it simpler for suppliers to deal with one company instead of two.
Paish said: “We’re setting up meetings with suppliers as we speak.”