Powell named president in London Drugs succession

Drug Store News,  June 22, 1998  by Tina Kyriakos

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RICHMOND, B.C. - The death of Tong Louie, the highly respected Vancouver businessman who parlayed London Drugs from a 10-store regional drug chain into a retail powerhouse known for its mega formats and non-traditional product mix, will mean few changes at the 47-store company's headquarters in suburban Vancouver.

While Louie's passing will leave a personal void for thousands of employees at London, as well as at its parent company H.Y. Louie Co., a wholesale grocery supply business, a well-planned succession strategy that has put seasoned company managers in the top posts is expected to keep the family-owned company at the forefront for some years.

"There are no plans for London Drugs to slow down or to become any less dynamic," said Wynne Powell, who has moved up from senior vice president and chief operating officer to president and chief operating officer. He applauded the quick and decisive action by chairman and chief executive officer Brandt Louie, Tong Louie's 55year-old son and successor, to announce top positions and agree to set up a new revitalized executive committee that will act as a day-to-day board of directors. This has quelled rumors that London would be sold or that it would veer away from its present direction.

Powell and other top managers are confident that the Louie family will continue to show the same type of commitment as their father did to staff and management. Following the death of the 84-year-old patriarch, the family moved swiftly to accept Powell's suggestion to appoint some new and younger members to the company's executive committee, which operates largely as a day-to-day board of directors.

"Prudent management in any corporate group requires an ongoing succession planning process," said Powell in describing the teaming up of veteran London executives, such as Norm Hoff, vice president of finance, and Len Marks, vice president of pharmacy and cosmetics, with younger managers, such as Clint Malhman, director of human resources, Dick Vollet, general manager of retail operations, and Donna Figueira, director of real estate and corporate counsel.

"It was time to bring in younger people and let them become involved in a very strong way," said Powell. Along with the opportunity for career development for these people, he said the move was important for corporate development in that it signaled a renewal process of the management team that allowed highly seasoned executives to continue to he available around the table as others moved toward retirement.

Given the similarities between Tong Louie and Brandt Louie, all expectations are that the new chief executive officer will use the same "mentoring empowerment" management style used by his father.

Tong Louie served as a board member of the Business Council of British Columbia. In 1990, he was named entrepreneur of the year and earned an honorary doctorate from the University of British Columbia. A noted philanthropist, Louie received the Order of Canada in 1989--the highest distinction for a Canadian citizen.

By all accounts, Brandt Louie, who is also president and chief executive officer of H.Y. Louie Co., chairman and chief executive officer of TLD Computers and vice chairman of IGA Canada, is more than up to the task of filling his father's shoes. "Brandt Louie is very similar to his father," said Powell, who describes the new chief executive officer as "action oriented, dynamic, focused, visionary and, above all, driven, very driven."

A chartered accountant by profession, Brandt Louie is active on a number of boards of directors, including Food Distributors International and IBM Canada. Since taking over as president of H.Y. Louie a decade ago, Louie has been a facilitator and chairperson who has the confidence to entrust operational aspects of the company to his management team.

Powell, an accountant who has worked in a number of senior positions in sales, marketing and merchandising since joining London Drugs in 1982, is also director and president of TLD Computers. He will continue to head up day-to-day operations under what he says is Louie's "hands-off' management style.

"The process is, I present the executive committee's desires, and [Louie] advises me on the family's desires," explained Powell. noting that Louie's sister Anndraya Luui is in charge of the company's internal communications, and brother Kurt Louie also has plans to become more involved in the company.

Pushing the envelope

All indications are that London Drugs, which operates 32 stores in British Columbia and 15 stores in Alberta, will continue to push hard to differentiate itself from competitors.

Last year, it moved to larger footprints and added digitized photofinishing, as well as more high-end electronics lines, to a list of products and services that runs the gamut from life, auto, home and travel insurance to prescriptions. In one of its newest outlets-a 32,OOO-square-foot store in Richmond, B.C.--the company opened a Royal Bank mini-bank and an Internet cafe, offering on-site hookups.