Loblaw Companies Limited: Preparing for Wal-Mart Supercenters

2151 Words Dec 19th, 2011 9 Pages
Case 16

1. The grocery industry is a commoditized industry, which makes it difficult for grocers to sustain through differentiation. Buyer power is high and thus, cost leadership and operational efficiencies are critical. There is fierce competition amongst various grocery stores, with the main players such as Loblaw and A&P holding multi-banner stores in various market segments. Traditional grocery stores also lose some of their market share to drug stores, convenience stores and other retailers who have entered the industry. Threat of substitutes from fast-food and take- away outlets is not as prevalent, since many grocery stores have started stocking ready-to-eat meals and have deli services available for consumers. Competitive
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He spent 25 million dollars to motivate old employees to retire early as he turned traditional old stores into superstores.

6. This is a significant evaluation, because Loblaw is Canada’s largest food distributor, as well as one of the largest private sector employers. Loblaw operates under names such as The Real Canadian Superstore, Fertinos, Provigo, SuperValu, Zehrs, Atlantic Superstore, Loblaws, and Your Independent Grocer. Along with food and household products, Loblaw provides consumers with other services, such as banking, gas stations, pharmacies, photo developing, dry cleaning, and fitness centers. A qualitative and quantitative analysis of Loblaw was conducted through secondary research, using both internal and external sources. This report focuses on the goods distribution and marketing aspects of Loblaw, by exploring its history, primary products, social responsibilities, and financial position. Ratios of the past and present will be taken into consideration when researching and making recommendations.
History
Loblaw Companies Limited was incorporated in 1956 and it now employs over 122 000 part-time and full-time employees throughout its 990 branches. As a subsidiary of George Weston Limited, it has supplied the Canadian market with innovative products and services for more than 45 years. The superstore idea was first introduced to Western Canada in 1979. Loblaw operates in

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