For some strange reasons unbeknown to me, some people think companies acquire companies to help consumers to save money. I have never seen that in my life. Companies merge or acquire others to make more money, period.
So, I have heard comments that by acquiring Shoppers, some consumers expect saving at both Superstore and Shoppers. The truth is you may save 1 to 2 percent at the beginning, then you won't. Superstore is owned by the second richest family in Canada for a reason - the Weston family exists to make money, and to become richer. Just in case you have forgotten, the Weston family started the President's Choice Financial in the 1990s. Have you ever heard of a financial institution that is not solely about money? Have you forgotten about the 2008 financial crisis?
There is also something called profit margin in the business world, and it is certainly why the deal exists. The deal will allow both companies to save cost in the millions especially by having a bigger bargaining power than ever to its suppliers. Yes, the Weston family will become richer, but suppliers will suffer for sure. Just in case you didn't know, the family also owns Selfridges (which is one of the best department stores in the UK) and its current stock price is above $80 in TSX. All I can see is the dollar sign.
I would love to see that I am wrong, but I really don't think so.
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