There is speculation by analysts of the retail drugstore business that Jurgen Schreiber, new chief executive of Rexall Pharma Plus, is a possible agent to a take over of the chain by a U.S. or European drug firm. Mr. Schreiber was chief executive officer at Shoppers Drug Mart for four years until 2011. He was also previously head of A.S. Watson Group, a European chain of health and beauty stores, which is part of global conglomerate Hutchison Whampoa Ltd.
TO DROP PHARMA PLUS NAME
Mr. Schreiber will become CEO of the newly renamed Rexall Health in August, the company has announced. It is not clear what this means for store signage Rexall has been without a CEO since Frank Scorpiniti resigned in October. A story in the Globe and Mail says Rexall has been “updating its store design in “pool-side” aqua and concentrating more on health items such as vitamins and alternative medicines and margin-friendly private labels.” Perhaps the stores managers at South Bayview Rexalls on Moore Ave, Mt. Pleasant and in Sunnybrook Plaza can update customers on the nature of pool side aqua (fins?) Wendy Evans, of retail analysts Evans & Co. Consultants told the Globe that Schreiber has a strong background in boosting sales of high-margin beauty and cosmetics merchandise. With gross margins of up to 50 per cent or more, beauty products can generate more than twice the margins of other goods, such as toothpaste.
TAKEOVER TALK
As to a possible takeover, Schreiber’s former associations might assist in a takeover by A.S. Watson or U.S. chain Walgreens Boots Alliance Inc., she said. A further quote from the Globe story has consultant Jeff Doucette saying that Mr. Schreiber could make Rexall a potential acquisition opportunity.
