Professional Documents
Culture Documents
“Loblaw Companies Limited: Preparing for Wal-Mart Supercenter”Kipenzi Herron and Emilsen
HolguinBus 511 Business Strategy and PolicyDr. Adolfo GorriaranJanuary 2010
2. 2. Agenda Loblaw Mission and Vision Statements Loblaw History Corporate Strategy
Industry Overview SWOT analysis Wal-Mart Market Entry February 2007: 100-day review
Summary Discussion Questions References 2
3. 3. Loblaw Mission and Vision Loblaw’s mission is to be Canada’s best food, health and home
retailer by exceeding customer expectations through innovative products at great prices. Loblaw
is committed to a strategy developed under three core themes: Simplify, Innovate and Grow.2006
Annual Report, http://www.loblaw.com/en/lcl_ar06e/downloads/lcl_ar2006_e 3
4. 4. Loblaw HistoryLoblaw was acquired by George Weston Ltd. Loblaw was built as a food empire
through the purchase of grocery manufacturers, retailers and wholesalers Credited with inventing
premium private brands in North America In 2005, Loblaws was the largest supermarket chain in
Canada, with an estimated market share of 34.9% In 2008, Loblaw has 609 corporate and 427
franchised stores in every province and territory in Canada (21 banners). Loblaw’s President’s
Choice and name control brands are the #1 consumer packaged good brands by sales in Canada.
2006 Annual Report, http://www.loblaw.com/en/lcl_ar06e/downloads/lcl_ar2006_e 4
5. 5. Corporate Strategy Creation of private labels Consolidated of distribution centers Closure
of unprofitable stores Maximized the use of Loblaw’s fleet Uniform pricing strategy
Standardized store design Renegotiated union contracts Introduction of general offerings2006
Annual Report, http://www.loblaw.com/en/lcl_ar06e/downloads/lcl_ar2006_e 5
6. 6. Industry Overview Canadian supermarket industry was valued at $73 billion in 2006. The
grocery business was less fragmented, more competitive, multicultural and dominated by national
companies. Canada has a well-developed discount grocery sector with very high standards. 2006
Annual Report, http://www.loblaw.com/en/lcl_ar06e/downloads/lcl_ar2006_e 6
7. 7. Industry Overview (continue) The Province of Ontario is a key market in Canada and the biggest
market for Loblaw. Ontario’s sales declined 4.3% in 2006. Although sales in 2006 grew 2.49%, the
growth was slower than the traditional year-to-year increase of around 4.8%. New stores are
increasing the average size of supermarkets in Canada. National and regional chains are getting a
wider range of store innovations and an increased spotlight on private labels. 2006 Annual Report,
http://www.loblaw.com/en/lcl_ar06e/downloads/lcl_ar2006_e 7
8. 8. SWOT: Loblaw’s Strengths
Strong brand name
Position of market share – sales number continue growing
7000 Private-label products (No Name and President’s choice)
President’s Organic product President’s Choice Bank and its loyalty program
Large amount of fixed assets versus low amount of debt
Economy of scale and large knowledge and experience in Canadian market
Wide geographic coverage (all Canadian provinces
) Social responsibility initiatives, close to the community.