Change in business happens fast, which is why it may be difficult to keep track of costs without the help of retail accounting software. It can help stores keep track of all of their expenses even for exceptionally huge transactions, such as in the case of retail giants merging. With its ability to keep track of inventory and retail processes, retail and point of sale technology is valuable to merchants of every size. Two of Canada's largest retailers have recently announced their plans to merge, according to Domain-b.com. Leading food retailer Loblaw Companies announced it had planned to buy Shoppers Drug Mart, the nation's largest pharmacy chain for C$12.4 billion.
In its 51 years in operation, Shoppers Drug Mart has more than 1,240 locations and is Canada's largest retailer for health and beauty products. Under its name, the company owns stores that sell pharmaceutical drugs and assisted-living equipment in addition to being a provider of services for patient support and long-term care facilities.
"We are delighted to partner with Loblaw to leverage our combined strengths," said Domenic Pilla, president and CEO of Shoppers Drug Mart. "For our shareholders, this transaction provides significant and immediate value, as well as the ability to benefit from future upside by virtue of their continued ownership of shares in the combined company. And for our customers, it provides more locations with an enhanced mix of products and offerings that contribute to the good health of Canadians."
Huge revenue projected after merger
The company buying Shoppers Drug Mart is Loblaw, the largest food retailer in Canada and a provider of general merchandise and financial products and services. It has more than 1,000 stores and approximately 134,000 employees. Once the two merge, the current management of Shoppers Drug Mart will not change, with Pilla still at the helm, and the drug retailer will function as a separate branch of Loblaw. The projected revenue for the company will be more than $42 billion after merger is complete, which is expected to take six or seven months, according to Loblaw's press release.
"This transformational partnership changes the retail landscape in Canada. With scale and capability, we will be able to accelerate our momentum and strengthen our position in the increasingly competitive marketplace," said Galen Weston, executive chairman of Loblaw.
Track transactions with retail and point of sale technology
Whether companies are as large as retailers like Loblaw or Shoppers Drug Mart or are just starting to grow, retail accounting software can help monitor inventory and sales processes for an improved business operation. When businesses experience mergers or want to keep track of inventory, seek out innovative accounting solutions to manage all expenses and revenue streams. Not only can accounting software manage a company's expenses, it can also improve its cost-efficiency in the long run.