Subsidiary of local grocery co-operative to hold majority stake in Canada’s largest chain of independent Canadian retail pharmacies controlled by licensed pharmacists
Calgary Co-op is further expanding its retail footprint by becoming the majority shareholder of Ontario-headquartered Care Pharmacies.
The acquisition falls within the scope of Co-op’s focus on growth in the health and wellness sector, CEO Ken Keelor said.
“We’ve been focused on growing in the health and wellness space now for a few years,” Keelor told Postmedia, highlighting acquisitions including a home health-care company and Calgary-based Community Natural Foods.
The purchase of Care Pharmacies is part of a larger strategy for Co-op to enter new retail sectors and grow its geographical footprint, both rooted in a desire to protect members’ investments, Keelor added.
“It’s really about diversifying our members’ investments so they’re not completely invested in one market, being Calgary, which can be very much a boom-and-bust market. . . . We’re derisking the members’ investment,” he said.
He expressed a similar sentiment with regard to entering new lines of business.
“Whereas other businesses might slow down or shrink, health and wellness will continue to grow and potentially replace revenues that come from those other lines of business in the long term,” Keelor said, referring to a timeline spanning decades.
Care Pharmacies, a group of independent retail outlets controlled by licensed pharmacists, is headquartered in Vaughn, Ont., and will continue to operate as a separate entity following the transaction, Co-op said.
In Western Canada, the chain has one location in Alberta, one in Saskatchewan and 15 in British Columbia. In total, it has 56 pharmacies in five Canadian provinces.
A number of these locations operate in smaller localities, and in some cases they are the only retailer in town, acting as a general store.
“They are the meeting place and the community hub for all kinds of interactions,” Keelor said.
Because Care Pharmacies retail outlets are mainly owned by people who live in or near where the stores are located, there’s a culture of caring for its customers that Co-op found desirable, he added.
Care Pharmacies CEO Ali Reyhany said Calgary Co-op and Care Pharmacies share similar values.
“As hubs within our communities, we know that Care Pharmacies will continue to be strong beacons of trust and service for Canadians and their health and wellness,” he said in a written statement provided by Co-op on Tuesday. “We have found a great partner in Calgary Co-op and look forward to continuing to grow our business across Canada.”
The transaction, financial terms of which were not disclosed for competitive reasons, is expected to close in the first quarter of 2024, subject to certain conditions and regulatory approval.
Co-op’s Care Pharmacies acquisition follows its purchase of Willow Park Wine and Spirits in January 2023, with new locations recently opening in Saskatchewan.
Co-op bought Community Natural Foods in November 2019, with the brand now operating one location in Edmonton.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
The Canadian Press. All rights reserved.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
The Canadian Press. All rights reserved.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
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