SHOPPERS DRUG MART CORPORATION ANNOUNCES LEADERSHIP CHANGE AND INTERIM SUCCESSION PLANS - JÜRGEN SCHREIBER TO RESIGN AS PRESIDENT AND CHIEF EXECUTIVE OFFICER EFFECTIVE FEBRUARY 15, 2011
Jan 26, 2011
TORONTO, Jan. 26 /CNW/ - The Board of Directors of Shoppers Drug Mart Corporation today announced that it has accepted the resignation of Jürgen Schreiber as a Director and as the Company's President and Chief Executive Officer. The resignation of Mr. Schreiber is effective February 15, 2011. Mr. Schreiber is leaving the Company to pursue a private equity opportunity outside of North America.
The Company's Board of Directors also announced today that it has begun a global search for a new Chief Executive Officer and provided details with respect to an interim succession plan for the Company. Upon the effective date of Mr. Schreiber's resignation, David Williams, Chair of the Board of Directors, will serve as the Company's President and Chief Executive Officer on an interim basis until a replacement is named. Mr. Williams has served as an independent Director of the Company since September of 2003. Prior to his appointment as Chair of the Board of Directors in February of 2007, Mr. Williams served as a member of the Company's Audit Committee from November of 2003 until May of 2006, at which time he joined the Company's Nominating and Governance Committee. Mr. Williams brings an array of relevant retail and senior management experience to the role acquired during a career that included 22 years with George Weston Limited and Loblaw Companies Limited, where he held a number of senior executive positions in operations and finance.
In leading this transition, Mr. Williams will operate with a structure that will have three of the Company's most senior executives reporting directly to him on an interim basis. During this period, Mr. Williams will benefit from the leadership and counsel of Brad Lukow, Executive Vice President and Chief Financial Officer, Mike Motz, Executive Vice President, Operations, and Mary-Alice Vuicic, Chief Administrative Officer & Executive Vice President, Human Resources. Collectively, these three individuals possess a wealth of relevant knowledge, experience and cross-functional capabilities. Mr. Lukow, a chartered accountant, has been with Shoppers Drug Mart since 1994. Mr. Motz has an extensive background in retail operations and has been with the Company since 2003. Ms. Vuicic, a seasoned retail executive with considerable experience in human resources and organizational development, joined Shoppers Drug Mart in 2007.
Mr. Schreiber joined the Company as its President and Chief Operating Officer in August of 2006 and assumed the role of President and Chief Executive Officer in March of 2007. Under his stewardship and direction, the Company has continued to build upon its position as Canada's leading retailer in health, beauty and convenience. During his tenure, Mr. Schreiber has led the Company's through a period of continued growth, resulting in record sales and profitability. Commenting on the leadership transition, David Williams, stated, "On behalf of the Company's Associate-owners, employees and shareholders, the Board of Directors wishes to thank Mr. Schreiber for his many contributions to the Company's continued success under his leadership and we wish him well in his future endeavours." Mr. Williams went on to say that, "We have the utmost confidence in the leadership structure that we have established on an interim basis and know that this team, with the support of the Company's Executive Committee, senior management, employees and Associate-owners and their teams at store level, will continue to execute on our well-defined strategic priorities and initiatives."
About Shoppers Drug Mart Corporation
Shoppers Drug Mart Corporation is one of the most recognized and trusted names in Canadian retailing. The Company is the licensor of full-service retail drug stores operating under the name Shoppers Drug Mart (Pharmaprix in Québec). With more than 1,181 Shoppers Drug Mart and Pharmaprix stores operating in prime locations in each province and two territories, the Company is one of the most convenient retailers in Canada. The Company also licenses or owns more than 58 medical clinic pharmacies operating under the name Shoppers Simply Pharmacy (Pharmaprix Simplement Santé in Québec) and eight luxury beauty destinations operating as Murale. As well, the Company owns and operates 63 Shoppers Home Health Care stores, making it the largest Canadian retailer of home health care products and services. In addition to its retail store network, the Company owns Shoppers Drug Mart Specialty Health Network Inc., a provider of specialty drug distribution, pharmacy and comprehensive patient support services, and MediSystem Technologies Inc., a provider of pharmaceutical products and services to long-term care facilities in Ontario and Alberta.
For more information, visit www.shoppersdrugmart.ca.
Forward-looking Information and Statements
This news release contains forward-looking information and statements which constitute "forward-looking information" under Canadian Securities law and which may be material regarding, among other things, the Company's beliefs, plans, objectives, estimates, intentions and expectations. Forward-looking information and statements are typically identified by words such as "anticipate", "believe", "expect", "estimate", "forecast", "goal', "intend", "plan", "will", "may", "should", "could" and similar expressions.
The forward-looking information and statements contained herein are based on certain factors and assumptions by management, certain of which are set out herein. Inherent in the forward-looking information and statements are known and unknown risks, uncertainties and other factors beyond the Company's ability to control or predict, which may give rise to the possibility that the Company's predictions, forecasts, expectations or conclusions will not prove to be accurate, that its assumptions may not be correct and that the Company's plans, objectives and statements will not be achieved. Actual results or developments may differ materially from those contemplated by the forward-looking information and statements.
The material risk factors that could cause actual results to differ materially from the forward-looking information and statements contained herein include, without limitation: the risk of adverse changes to laws and regulations relating to prescription drugs and their sale, including pharmacy reimbursement programs and the availability of manufacturer allowances, or changes to such laws and regulations that increase compliance costs; the risk that the Company will be unable to implement successful strategies to manage the impact of the regulations enacted in 2010 in the Province of Ontario to amend the Ontario drug system, along with the impact of the new Pharmacy Services Agreement that came into effect in 2010 in the Province of British Columbia, as well as the impact of the proposed and/or announced drug system reform initiatives in these and other jurisdictions of Canada, principally the provinces of Alberta, Québec, Nova Scotia and Newfoundland and Labrador; the risk of adverse changes in economic and financial conditions in Canada and globally; the risk of increased competition from other retailers; the risk of an inability of the Company to manage growth and maintain its profitability; the risk of exposure to fluctuations in interest rates; the risk of material adverse changes in foreign currency exchange rates; the risk of an inability to attract and retain pharmacists and key employees; the risk of an inability of the Company's information technology systems to support the requirements of the Company's business; the risk of changes to estimated contributions of the Company in respect of its pension plans or post-employment benefit plans which may adversely impact the Company's financial performance; the risk of changes to the relationships of the Company with third-party service providers; the risk that the Company will not be able to lease or obtain suitable store locations on economically favourable terms; the risk of adverse changes to the Company's results of operations due to seasonal fluctuations; risks associated with alternative arrangements for sourcing generic drug products, including intellectual property and product liability risks; the risk that new, or changes to current, federal and provincial laws, rules and regulations, including environmental and privacy laws, rules and regulations, may adversely impact the Company's business and operations; the risk that violations of law, breaches of Company policies or unethical behaviour may adversely impact the Company's financial performance; property and casualty risks; the risk of injuries at the workplace or health issues; the risk that changes in tax law, or changes in the way that tax law is expected to be interpreted, may adversely impact the Company's business and operations; the risk that new, or changes to existing, accounting pronouncements may adversely impact the Company; the risks associated with the performance of the Associate-owned store network; and the risk of damage to the reputation of brands promoted by the Company, or to the reputation of any supplier or manufacturer of these brands.
This is not an exhaustive list of the factors that may affect any of the Company's forward-looking information and statements. Investors and others should carefully consider these and other risk factors and not place undue reliance on the forward-looking information and statements. Further information regarding these and other risk factors is included in the Company's public filings with provincial securities regulatory authorities including, without limitation, the sections entitled "Risks and Risk Management" and "Risks Associated with Financial Instruments" in the Company's Management's Discussion and Analysis for the 52 week period ended January 2, 2010, for the 12 week period ended March 27, 2010, for the 12 and 24 week periods ended June 19, 2010 and for the 16 and 40 week periods ended October 9, 2010. The forward-looking information and statements contained in this news release represent the Company's views only as of the date of this news release. While the Company anticipates that subsequent events and developments may cause the Company's views to change, the Company does not undertake to update any forward-looking information and statements, except to the extent required by applicable securities laws.
Additional information about the Company, including the Annual Information Form, can be found at www.sedar.com.
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