How Weight-Loss Drugs Are Boosting Grocers’ Pharmacies

Major grocery chains across Canada are experiencing a notable sales boom in their pharmacy units, driven largely by the surging popularity and rising availability of weight-loss drugs.

How GLP-1 Weight-Loss Drugs are Boosting Grocery Pharmacies

The explosive demand for semaglutides, the active ingredient in medications like Ozempic, has translated directly into higher prescription volumes at supermarket-owned pharmacies. Loblaw Cos. Meanwhile, Metro Inc. outgoing chief executive Eric La Flèche noted that demand fundamentals remain strong with early evidence of increased patient adoption.

Financial metrics underscore the shift. Loblaw reported that its drug retail same-store sales grew 4.6 per cent in its latest quarter, while Metro posted a 4.8 per cent increase in pharmacy same-store sales. Both figures outpaced same-store sales metrics for their respective food divisions, driven primarily by the prescription category.

The Impact of Generic Semaglutide on Market Accessibility

Historically branded as expensive treatments primarily accessible to higher-income demographics, GLP-1 medications are seeing broader consumer penetration as cheaper, generic alternatives enter the market. Amar Singh, senior director and head of Canadian retail insights at Kantar, noted in an interview that generic availability is lowering costs and making the treatments more affordable for a wider population.

A March Leger poll indicated that approximately eight per cent—or three million Canadians—were using prescription GLP-1s at the time. Furthermore, half of survey respondents stated that insurance coverage or lower-cost generics would increase their likelihood of using the drugs, with more than half citing weight loss as their primary motivation. Singh projects that market uptake could climb to about 20 per cent over the next one to two years.

Company	Pharmacy Division	Reported Metric / Growth
Loblaw Cos. Ltd.	Shoppers Drug Mart / Pharmaprix	~40 per cent surge in GLP-1 sales; 4.6 per cent drug retail same-store sales growth
Metro Inc.	Jean Coutu	4.8 per cent pharmacy same-store sales growth

Volume Growth Offsetting Lower Generic Drug Prices

While generic drugs introduce price deflation and lower per-unit costs, retail executives and analysts emphasize that the sheer surge in volume creates a net positive financial outcome. Veritas analyst Kathleen Wong noted in an August report regarding Metro’s quarterly results that while price deflation pressures dollar-measured same-store sales, increased accessibility and prescription volumes offset that pressure at the contribution level.

La Flèche told analysts that as generic supply builds, low-teens volume and contribution growth are expected to more than offset a meaningful portion of pricing pressure. This dynamic coincides with ongoing physical expansions. Wong pointed out that Loblaw expects to have opened approximately 200 stores over a three-year period, with roughly half designated as pharmacies. Additionally, Empire recently acquired nine Morelli’s pharmacies in Ontario, integrating them directly into select Longo’s grocery locations.

Adapting Grocery Retail Strategies for GLP-1 Consumers

The rising prevalence of weight-loss medications is also prompting grocers to reconsider how they market food and health services. Jo-Ann McArthur, president of Nourish Food Marketing, explained that changes in dietary habits among GLP-1 users present opportunities for supermarkets to tailor the customer experience through loyalty apps, specialized meal planning, health-care insights, and targeted shelf labelling.

Loblaw introduced an online weight-management program late last year, connecting consumers with health care practitioners to assess drug qualification. McArthur emphasized that customer retention extends beyond individual medication buyers, noting that individuals on these regimens frequently manage household meal preparation and shopping for entire families.

Frequently Asked Questions

Why are grocery pharmacy sales increasing?

Grocery pharmacy sales are rising largely due to increased consumer adoption of GLP-1 weight-loss and diabetes management drugs like Ozempic, driven by growing availability and cheaper generic options.

How are generic semaglutide drugs affecting retail pharmacies?

While generic versions result in lower per-unit prices, the sharp increase in prescription volumes is driving overall contribution growth that offsets price deflation, according to industry analysts and financial reports from Loblaw and Metro.

What percentage of Canadians use GLP-1 medications?

A Leger poll from March indicated that approximately eight per cent, or three million Canadians, were using prescription GLP-1 drugs, with market uptake expected to approach 20 per cent as generic availability expands.

Are Canadian grocers expanding their pharmacy networks?

Yes. Major chains are actively expanding; Loblaw opened roughly 100 pharmacy locations out of 200 new stores over a three-year period, and Empire recently acquired nine Morelli’s pharmacies in Ontario.