Analysis Brief Background to Loblaw and Shoppers Drug Mart Loblaw companies limited started business in 1919 with groceries store in Toronto. Loblaw is the real Canadian store in Canada. Loblaw companies Ltd. many business such as grocery, pharmacy, health and beauty, apparel, general merchandise, financial service, wireless mobile and services. Loblaw companies Ltd. different brand name like PC, NO NAME, JOE FRESH and T&T. Shopper drug mart started business in 1962 in Toronto. Main business of the shopper drug mart is pharmacy related products now shopper started many business health and pharmacy, beauty, food and home and financial service. Shopper drug mart have different private level brand name like LIFE, QUO, SIMPLY FOOD, NATIVA ORGANIC, AMIGO and EVERYDAY MARKET Loblaw companies Ltd. main business groceries store and shopper drug mart is a medical related business finally Loblaw companies Ltd. acquired shopper drug mart march 28, 2014. Objectives to the Merger The motivations behind …show more content…
In return Shoppers will gain access to Loblaw's vast network of food suppliers and will start carrying its President's Choice brand of food products. Shoppers CEO Dominic Pilla said, the pharmacy chain has been expanding its range of food products and the merger will allow it to keep growing in this area, especially in the area of fresh food, where it has limited offerings. Prior to the merger Loblaw shares were trading at $41.30 on December 13, 2013. By March 28, 2014 the shares had reached a $47.50 price per share and then over the next 28 days the price per share decreased to $45.82 and then to $45.70 per share on May 30, 2014. After May 30, 2014, the per share price has been gradually increasing, currently trading at $72.92 per share. So clearly the merger has contributed to increasing the value of the company per share by 55% since March 28,
Shoppers Drug Mart Corporation is a subcategory of Loblaw Companies Limited as a licensor and full service drug store which was founded in 1962 in Toronto by Murray Koffler. This company has grown to a network of 1307 stores all over Canada and counting (cite).
The first Loblaw grocery store opened in 1919 in Toronto and then chain expands to more than 70 stores in Ontario and to New York the new self-serve, cash and carry concept of grocery retailing is a big hit with customers and new Loblaw’s is a supermarket chain with over 2000 stores in Canada, headquartered in Brampton, with stores in British Columbia, Alberta, Ontario and Quebec. Loblaw’s is a division of Loblaw Companies Limited, Canada's largest food distributor. long-term growth. Loblaw is grocery store of the future needs to offer a better life, not just better food. So Loblaw has managed to be consistent in its mission and agile in its methods at the same time.
Walmart is the preeminent organization that was established by Sam Walton in 1962 and now Walmart’s leads globally including Canada. Walmart was first started as small discount store with the slogan of “more for less”, and now it has grown worldwide in last five decades into the one of the biggest retailer across the globe. And today Walmart controls over 11,000 retail unit under 65 banners in 28 countries with workforce of 2.2 million associates across the globe whereas 1.4million in the U.S alone. Walmart also hires full time and part time employees with the minimum qualification. Company targets the domestic customer looking for more with less spending power. Walmart has deals going throughout the year with amazing offers which fulfills customers need.
What the company could do, is to protect and increase its dominance in the Canadian grocery market. Loblaw has a strong presence in Canada that it should use in its favor to tighten Walmart’s entry barrier further. The company could also place emphasis on expanding the Real Canadian Superstore (RCSS) chain to compete with Walmart superstores. As the incumbent market leader, Loblaw has an attractive set of strengths and competitive advantages that allowed it to prosper in the market. Furthermore, Loblaw can explore additional opportunity to increase and maintain market share, such as exploit emerging new technology, launch a new loyalty program for customers, make some supply-chain adjustments or expand to more locations. Thus, should Walmart decide to enter the Canadian market, Loblaw will be ready. The positioning map below shows Loblaw position in the Canadian market vis-à-vis other competitors. Based on the map, Walmart has a very long way to go before posing a real threat to Loblaw.
Wal-Mart Corporation is one of the largest retail stores in the world. They serve customers in meeting their needs with low cost saving items. On October 31, 1962, Wal-Mart was founded and incorporated by Sam Walton in Bentonville, Arkansas. Mr. Walton went into business because he felt that items sold were too high for the average customer to afford. His focus was to sell products at low prices to get higher volume sales at a lower profit margin. He bought bulk products from different suppliers so he could incorporate savings into his pricing to lower cost for customers. Under the savings cost concept, Wal-Mart grew rapidly and surpassed its competitors in sales and generating profits.
Loblaw Companies Ltd. is the largest Canadian based grocer with more than 1,000 stores operating in every province. Loblaw with 2015 sales of $44,4 bln and 29% grocery market share dominates in this industry .
On the first hand, we formulated a pre-merger analysis in order to have a better understanding of the deal. We identify the state of the Canadian economy and the industry trends of grocery-retailing and pharmaceutical-retailing, as well as Loblaw and Shoppers financial and operational situations prior to the announcement of the deal. The macro and micro analysis helped us identify the true motives
Walmart is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores and grocery stores. Wal-Mart controls over 11,500 stores in 28 countries around the world. It was founded in 1962 by Sam Walton. Walmart’s CEO is Doug McMillon and the Chairperson of Board of Directors is Greg Penner. Walmart as we know it today evolved from Sam Walton’s goals for great value and great customer service. He
Hooters is a restaurant that has targeted a mostly male customer base. Research discovered “Hooters was appropriately incorporated on April Fool’s Day, 1983, when six businessmen with absolutely no previous restaurant experience got together and decided to open a place they couldn’t get kicked out of. The restaurant would combine their favorite manly finger foods with the 50’s and 60’s music they felt best exemplified a happy, nostalgic time in most Americans’ memories” (Hooters, n.d). The major competitors to Hooters now are Twin Peaks and Tilted Kilt. Currently Hooters is in the middle of a location change that will provide them with a brand new facility that centrally locates them in the middle of the town. This new location provides ease of access to the Davis-Monthan Air Force Base (DMAFB) and also the University of Arizona. A SWOT analysis will determine areas that offer opportunities for change if any for the Tucson Hooters.
Wal-Mart is one of the most successful retailers in the world (Wal-Mart corporate 2012). Currently, there
Wal-Mart is a general merchandise discount retailer, which was incorporated in 1962. Wal-Mart’s history is based on one man, Sam Walton, who changed the course of retailing forever. Sam Walton first entered retailing when he was a management trainee at J.C. Penny Co. in 1940 in Des Moines, Iowa. After serving in the Army in World War II, Walton acquired a Ben Franklin variety store franchise with his brother James Walton in Newport Arkansas, until they lost the lease to the store in 1950. By 1962, when the first Wal-Mart Discount City was opened in Rogers Arkansas, both Walton’s were operating fifteen stores under the “Walton 5 & 10” name, and were the largest Ben Franklin franchisee in the
i believe i am a funny person in general, so people tend to be easy around me and not feel uncomfortable if they do not know me.
Wal-Mart, the big giant, the place where a lot of people usually do their shopping for the low prices and the variety of products were founded by Sam Walton. Walton was an entrepreneur with an innovative vision started his own company and made it into the leader in discount retailing that it is today. In fact, Wal-Mart is considered to be the biggest company in the U.S. and it has stores worldwide. According to PBS, “Wal-Mart employs more people than any other company in the United States outside of the Federal government, yet the majority of its employees with children live below the poverty line.”(www.pbs.org) In addition, Wal-Mart likes to portray itself as a seller of U.S. manufactured goods
Loblaw Companies Limited amalgamated with Shoppers Drug Mart Corporation for $12.4 billion in cash and stock on July 15, 2013 and released a press release to address all audiences and to set a positive precedent regarding the merger. Loblaw needed to portray the merger as a collaborative attempt that would benefit all parties involved instead of just itself through the distribution of all necessary information to external audiences. Loblaw was reaching out to external audiences, as well as enabling, functional, normative, and diffused. Loblaw needed to disseminate information to all audiences about the merger because it would affect all aspects of the company. Stockholders are addressed in two entire sections of the press release labeled, “Financial highlights”, as well as “Approvals and Closing Conditions” which dictate what will be changing about their stocks with regards to the merger. The functional, normative, and diffused audiences are addressed generally throughout the release with “forward-looking statements” that boast about what good can be coming with the merger. Loblaw is constrained by emotional involvement because merging two companies will lead to necessary cut-backs due to the excess number of employees between Loblaw and Shoppers Drug Mart (SDM).
The cost of production of furniture are pretty low at the moment and so, new competitor will surface and it don’t take as much money as it did in the past to set up a furniture company. Economy recession is another factor that will threaten IKEA status as lesser people will be spending their money to replace their existing furniture.