Loblaw Shifts to Inner City in Battle With Wal-Mart

Loblaw Cos.’ C$12.4 billion ($11.9 billion) purchase of Shoppers Drug Mart Corp. gives the Canadian grocer an edge over bigger U.S. rivals such as Wal-Mart Stores Inc. by adding downtown stores across the country.

The second-biggest grocery acquisition of the past decade will see Loblaw gain a drugstore chain with more than 1,240 small-format stores, many in inner cities. The downtown stores allow Loblaw to sell more groceries in the Shoppers’ drug stores, while adding more pharmacy items in its food outlets.