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Canadian Grocers’ Pharmacies See Sales Surge on GLP-1 Drugs

Major grocery chains are experiencing a sales boom within their pharmacy units, largely driven by surging popularity of GLP-1 weight-loss drugs like Ozempic traditionally used for Type 2 diabetes.
Amar Singh, senior director of Canadian retail insights at Kantar, notes cheaper generic versions are expanding market penetration as costs decrease. Uptake is expected to rise to about 20 per cent over the next year or two.
Financial reports confirm this trend: Loblaw reported drug retail same-store sales grew 4.6 per cent in its latest quarter, while Metro's pharmacy same-store sales were up 4.8 per cent, both outpacing food sales.
Jo-Ann McArthur, president of Nourish Food Marketing, suggests grocers are leveraging this opportunity through loyalty apps and meal planning. "Where they make more money by providing more services and more advice," McArthur said.
Loblaw expects to have opened about 200 stores over the last three years, roughly half pharmacies, to capture this growth. Veritas analyst Kathleen Wong noted higher volumes should offset meaningful price pressures from generic competition.

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