Loblaw Companies

1.0 Introduction Loblaw Companies Limited is the leader of Canada’s food and pharmacy, their independently-operated stores, food and household products as well as pharmacies can be found in every Canadian’s neighborhoods. Loblaw used to save store and vendor information in different types of Legacy systems, for example, the vendors’ sales data is stored in the system called Bi-query, and the vendor stores payment records can be found in Customer Information Control System (CICS). However, given

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

A New Strategy for Loblaw Companies: Will it Work? In 2009 and forward, Loblaw Companies were up against aggressive competitive markets while still dealing with the backlash from the 2008 world economic crisis. Same store sales were on the decline and Loblaw’s was in desperate need to change their store strategies. By 2011, Loblaw’s had come up with the idea to diversify and expand their operations with new upgrades to in store departments as well as expanding upon their leading brands, President’s

Introduction Loblaw Companies Limited’s business strategy of “driving down costs through size and operational efficiencies, and differentiating both its products” has enabled the firm to gain 32% of the food retail market in Canada. Despite this success, Wal-Mart is looking to enter into the mature food retail market with the introduction of their SuperCenters (combining grocery and nonfood items). Wal-Mart is a forceful competitor, and the Every Day Low Prices strategy of Wal-Mart’s Supercenters

O: Execution Strategies 10 Strategic Recommendations Issues: As one thoroughly analyzes the Loblaw’s Companies Ltd. it is identified that Loblaw’s

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). A. Vision Statement Shoppers Drug Mart Corporation’s vision is “ to be the leader in helping Canadians discover a healthier outlook on life.” Also this statement has been backed up by this company’s core values which include: Ownership, Accountability

This appealed to customers and Loblaw was able benefits from the first-mover strategy. By taking advantage of its suppliers’ low-level bargaining power and the industry trends of high-priced products, Loblaws created high quality private label to target different customer segments. Loyalty Program Strategy Due to high competition in the industry and high bargaining power for buyers, Loblaw offers loyalty programs including President’s Choice Financial and

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

Loblaw Companies Limited Case Study Table of Contents Introduction 3 External Analysis 4 Internal Analysis 8 Alternatives 9 Recommendation 10 References 11 Introduction Loblaw Companies is facing the greatest competitive challenge of its recent history with the launch of Wal-Mart into their markets. Having originally entered the market in 1994 through the acquisition of 122 Woolco Stores, Wal-Mart is planning to open their

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