Essay About Loblaw Companies Ltd. And Wal-Mart

Loblaw Companies Ltd. – a Strategic Analysis by Emily Tauro
Loblaw Companies Ltd. – a Strategic Analysis by Emily Tauro
Loblaw Companies LTD. – A Strategic Analysis by Emily Tauro
Introduction:
“Loblaws is facing increased competition, which unfortunately comes from the
number one retailer in the world, Wal-Mart. Wal-Mart has a full grocery offering in their
super-centre which has created a new competitor for the Loblaw Company. In addition,
numerous traditional non-food retailers such as Zellers, Shoppers Drug Marts, and gas
station kiosks, are increasing the food products sold in their stores.”
This presents a
problem to the Loblaw Company because it now has more competitors and is no longer
the “go-to place” for groceries. In order to remain competitive with Wal-Mart and other
competitors, Loblaw created the Real Canadian Superstore which sells everything from
groceries, to medicine, to clothes to even household appliances/furniture and a womens
fitness area! I believe this was a very good move for Loblaw’s because they remain
competitive by updating their stores’ inventory, which keeps them current with the rising
trend of a one stop shopping store.
Overview of Loblaw/RCSS Current Strategy:
“To reach our Goal we must become a centralized, marketing-led organization
with an unrelenting focus on our customers, our products and our stores. We will
continue to leverage our scale and develop our capacity for consistent execution to drive
a profitable growth. At all of our stores from coast to coast with the support and
enthusiasm of every colleague and franchisee, we will offer a combination of promotions,
products, customer service and value that cannot be found any where else – that is what
will make Loblaw Worth Switching Supermarkets For.”
The above quote is from Mr. Galen G. Weston (the Executive Chairmen) and
states the goal of Loblaw and how they will execute it. The superstore will focus on
making the shopping experience more enjoyable for the customer by providing a variety
of products and good customer service. They do not plan to change their pricing but
instead make their stores a better environment so customers will think twice about going
to Wal-Mart for their everyday needs. To carry out their goal, Loblaw has created a
strategy with three main themes; simplify, innovate, and grow.
To some, the Superstore is overwhelming because of the large size and array of
products throughout the store. The Superstores in attempt to hold everything much like
competitor Wal-Mart, as well as groceries, have begun to carry a clothing line (Joe Fresh)
which is the leader in child clothing sales,
an electronics section which contains
everything from battery’s to T.Vs, pharmaceuticals, cosmetics, home appliances/furniture
and even a fitness centre and cooking class room. In a sense, The Real Canadian
Superstore offers a sample of the major stores; Future Shop, Shoppers Drug Mart, Home
Sense, any clothing fashion store, as well as a fitness centre all under one roof! This
Assignment Handout