TORONTO, Jan. 17 /CNW/ - The Board of Directors of Shoppers Drug Mart Corporation today announced a leadership and succession plan that will see Chairman and Chief Executive Officer Glenn Murphy leaving the Company at the end of March. At that time, Mr. Murphy will be succeeded as CEO of the Company by its current President and Chief Operating Officer, Jurgen Schreiber.
Mr. Murphy joined Shoppers Drug Mart as its Chairman and Chief Executive Officer in June of 2001. Under his stewardship and direction, the Company has emerged as one of Canada's largest publicly traded entities, with a market capitalization in excess of $10 billion. During his tenure, Mr. Murphy has led the Company through a period of record growth in sales and profitability. This was accomplished by successfully leveraging Shoppers' leadership position in pharmacy, re-invigorating the brand with the introduction of a new store model and by adding innovative products and services focussed on the Company's core offerings in health, beauty and convenience.
Mr. Schreiber joined the Company as President and Chief Operating Officer in August of last year. His move to Canada followed an extensive career in the consumer packaged goods and retail sectors throughout Asia and Europe. Prior to joining the Company, Mr. Schreiber was most recently Chief Executive Officer, Health and Beauty Europe for A.S. Watson, a subsidiary of Hutchison Whampoa Limited, owner of the world's largest network of health and beauty stores where he was responsible for more than 4,000 stores in 23 countries.
In announcing his departure, Mr. Murphy stated, "My time at Shoppers has been the most satisfying experience of my career. I've had the good fortune of working within our Associate-ownership structure, supported by the most talented management team and employees in all of retail. I owe much of what I have accomplished personally to their unwavering dedication, commitment and drive to succeed. I am confident that Shoppers will continue to execute on our well-defined strategies and initiatives and that Jurgen's global experience, creativity and energy will lead the Company to new levels of growth and success."
In reference to the timing of today's announcement, Mr. Murphy stated, "Early in 2006, the Board decided that it was the right time to bring in a senior person - in the form of a President and Chief Operating Officer. Since joining us last summer, Jurgen Schreiber has very capably filled this new role and brought a fresh perspective to the business. Secure in the knowledge that an effective successor was in place, I found myself thinking about the next stage of my own career, one that will see me pursuing opportunities outside of Canada."
Commenting on the leadership transition, David M. Williams, Lead Director of the Board, stated, "Succession planning is one of the most important responsibilities of a CEO and a board. When we recruited Jurgen last year, we felt that we were taking on someone with the qualifications, experience and tested skills to one day lead our business. We are convinced that he is the right leader to take this great Company to the next level. The Board is confident that the remaining transition period will allow for a smooth and transparent change in leadership." Mr. Williams went on to say that, "On behalf of the Company's Associate-owners, employees, shareholders and the Board, I would like to take this opportunity to thank Glenn for his dynamic leadership over the past five years. He has made a significant contribution to the growth and prosperity of this Company. I know that he will bring that same winning approach to the next stage of his career."
Commenting on his appointment, Jurgen Schreiber stated, "Glenn Murphy has led this Company through an important period of aggressive growth. He has charted a course for success in one of the most dynamic and competitive sectors in today's economy, during a period of tremendous change and transformation. I look forward to building on Glenn's successful strategy. I am delighted that I will have the opportunity to work with our Associate-owners and a proven, effective management team as we work together to strengthen our position as the leading pharmacy retailer in Canada."
The Company's Board of Directors also announced that Mr. Murphy will be resigning from his position as Chairman of the Board. Going forward, the Board of Directors has decided to separate the functions of Chair and Chief Executive Officer. Accordingly, a new, non-executive Chair will be selected for appointment by the Board of Directors in February and will assume office at the end of March.
Other Information
The Company will hold an analyst call at 11:00 a.m. (Eastern Standard Time) on Thursday, January 18, 2007 to discuss these developments. The call may be accessed by dialing 416-406-6419 from within the Toronto area, or 1-888-575-8232 outside of Toronto. The call will be simulcast on the Company's website for all interested parties. The website can be accessed via the Investor Relations section of the Shoppers Drug Mart website at www.shoppersdrugmart.ca. The conference call will be archived in the Investor Relations section of the website until January 24, 2007. A playback of the call will also be available by telephone until 11:59 p.m. (Eastern Standard Time) on January 24, 2007. The call playback can be accessed after the call on Thursday, January 18, 2007 by dialing 416-695-5800 from within the Toronto area, or 1-800-408-3053 outside of Toronto. The seven-digit passcode number is 3211812.
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 Quebec). With more than 985 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 owns and operates 58 Shoppers Home Health Care stores, making it the largest Canadian retailer of home health care products and services.
This news release contains forward-looking statements regarding, among other things, the Company's beliefs, plans, objectives, estimates, intentions and expectations, including as they relate to its operating and financial results, capital expenditures, dividend policy and the ability to execute on its operating, investing and financing strategies. These forward-looking statements are based on certain assumptions by management, certain of which are set out in this news release. Inherent in these forward-looking statements are known and unknown risks, uncertainties and other factors beyond the Company's ability to control or predict. Actual results or developments may differ materially from those contemplated by these statements depending on, among others, such factors as changes in the regulatory environment as it relates to the sale of prescription drugs, competition from other retailers, exposure to interest rate fluctuations, foreign currency risks, certain property and casualty risks, the ability to attract and retain pharmacists, risks in connection with third party service providers, the availability of suitable store locations, seasonality risks, changes in federal and provincial laws, rules and regulations relating to the Company's business and environmental matters, changes in tax regulations and accounting pronouncements, the success of the Company's Associate-owned stores, supplier and brand reputations and the accuracy of management's assumptions. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. Investors and others should carefully consider these and other factors and not place undue reliance on these forward-looking statements. Further information regarding these and other factors is included in the Company's public filings with provincial securities regulatory authorities including, without limitation, the section entitled "Risks and Risk Management" in the Company's Management's Discussion and Analysis for the 52 week period ended December 31, 2005 and the section entitled "Risk Factors" in the Company's Annual Information Form for the same period. The forward-looking statements contained in this news release represent the Company's views only as of the date of this 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 statements.
Additional information about the Company, including the Annual Information Form, can be found at www.sedar.com.
%SEDAR: 00016987EF