Real Canadian Super
Store
By: Whitney Curran
Mission Statement
 “Loblaw’s mission is to be Canada’s best food,
health and home retailer by exceeding
customer expectations through innovative
products at great prices”.
1
1. Loblaw Co Ltd. 2008 Annual Report: Worth switching supermarkets for. p. 1. Loblaw Co Ltd. Toronto. Canada
Introduction


Problem: Loblaw’s, right now is in a quickly expanding market, many companies that never
used to be in food are beginning to carry your average groceries and food products, i.e. Zellers,
Shopper’s Drug Mart, Gas Stations, and Wal-Mart. Loblaw’s now must compete with the worlds
number one retailer Wal-Mart, since they have introduced a full blown grocery store to their
super centers. The problem Loblaw’s now faces is how to compete with the great success of
Wal-Mart, to do so Loblaw’s introduced general merchandise into their stores creating the Real
Canadian Super Store concept.
Loblaw’s Strategy: Loblaw’s is known for the quality, innovation and value of its food offering. It
also offers Canada’s strongest control label program, including the unique President’s
Choice, no name and Joe Fresh Style brands.2 Loblaw’s uses it’s reputation of good quality and
fair prices to directly compete with Wal-Mart 2.
2. ABOUT US: Company Profile. http://www.loblaw.com/en/abt_corprof.html
My Position
Yes, I believe that Real Canadian Super
Stores strategy to be Canada’s best food,
health and home retailer is feasible and
will be successful.
Loblaw’s Strategy

In my opinion Loblaw’s strategy is to be on top of Wal-Mart by exceeding them in
quality of their merchandise, reliance on their good and safe food products,
excellent customer service and care, and great employee treatment. This is
achievable for them because:
1. Presidents Choice and Joe Fresh are already well respected
brands for their quality
2. Loblaw's grocery food product are already trusted across
Canada
3. Loblaw’s provides their customers with many other services
than just grocery and general merchandise, they provide them
with banking,
fitness, insurance, and mobile phone services 2.
4. over 139,000 full-time and part-time colleagues in more than
1,000 corporate and franchised stores from coast to coast 3.
Essentially becoming the “all Canadian One Stop Shop”.
2. ABOUT US: Company Profile. http://www.loblaw.com/en/abt_corprof.html
3. Careers. http://www.loblaw.com/en/empl_headoffice.html
Strategic Directions
1.
Loblaw’s is a grocery store introducing general merchandise, therefore people
already go there daily to buy their groceries and then are attracted to the
general merchandise, especially since Loblaw’s aisles are set up horizontally to
direct the consumer to the general merchandise. Compared to Wal-Mart, where
people don’t usually go as often (maybe once every two weeks or less) because
it use to only hold general merchandise
2.
Loblaw’s retail brands are loved and respected. President's Choice and No
Name are the #1 and #2 consumer packaged goods brands in Canada,
according the AC Neilson Market Track, 2008. Joe Fresh Style, the fastest
growing apparel brand in the country 3.
3. Careers. http://www.loblaw.com/en/empl_headoffice.html
SWOT- LOBLAW’S
Strengths:

Presidents Choice and Joe Fresh brand

Quality and trusted food products

Walk-in clinic and other services such as cleaners, wine store

Deli counter, organic selection, fresh fish- specialty foods
Weakness:

Not as much product selection

Higher prices than Wal-Mart

Less locations than Wal-Mart

Not as many separate departments
Opportunities:

People already trust their grocery so they will trust in their general merchandise

Beat out Wal-Mart by offering better quality at a “cleaner” store

Continue to expand from their Joe Fresh brand, which they will be doing come July this coming yearintroducing beauty care products 4.
Threats:

Wal-Mart attracting their consumers by offering lower prices

Wal-Mart taking over market and putting shops like the Super Store out of business

Not being able to compete with Wal-Marts different business strategy
4. Word of Mouth- International Business trip to The Real Canadian Super Store.
SWOT- Wal-Mart
Strengths:

Offers a very wide range of products

All stores have the same layout

Has more locations nation wide

Hard for RCSS to compete with Wal-Marts overall efficiency of distribution 4.
Weakness:

Newly introduced grocery not trusted as much

Some complain Wal-Mart is too big 4.

Not a daily store like RCSS

Reports of poor employee treatment
Opportunities:

Continue to take over the market of super markets and general merchandise

People, in these economic times more concerned about money- drawn to Wal-Mart low prices

Better Deals than RCSS- Gillette razor, RCSS- $7, Wal-Mart- $5.50
Threats:

RCSS always having better quality foods

Taking on too many different products and loosing sight of producing quality for their customers

Having the reputation of “not as nice” as Loblaw’s
Key Success Factors
Loblaw’s key success factors are:

They have their own brand (PC, Joe Fresh) you can only get there

Quality and trusted products

Good perceived image by the public

Excellent inventory management- automatically keeping track of what is on the shelves

Friendlier atmosphere- friendly employees, better lighting, higher ceilings

Groceries are needed weekly- go to RCSS and while there spend money on general merchandise

Better organization of their products/ layout of their store- grocery allies leading to general merchandise

Competitive pricing
Rcss uses these key success factors to ensure that they provide top notch produce and quality foods for their
customer in an atmosphere that is friendly, clean and inviting. The provide better organization of their store to
ensure an easy shopping experience for their daily customers. They have their own brand, so that once you
are attached to it you must go to Loblaw’s to find it. Also they have an innovative inventory management
system to ensure every product that they carry that you many want is always there for you to have. Therefore
Loblaw’s uses key success factors to fulfill their mission statement.
Overall Success

In the long run Loblaw’s will be successful in becoming the all Canadian one stop
shop. They will be redefining the definition of a super market be providing
customers with quality produce and groceries along with all their health, home and
beauty products in trusted successful store. They will be successful because they
already have loyal customers who come there everyday for groceries, and who will
trust in their general merchandise. They also have their PC brand that many
people are loyal to seeing as it is rated 1st and 2nd consumer packaged goods in
Canada, and those people will only ever find that brand at a Loblaw’s store.
Loblaw’s also stays competitive in pricing with Wal-Mart while offering a higher
quality product. Overall Loblaw’s will always be higher quality and customers will
therefore stay loyal.
Recommendations

If I was hired as a consultant for Loblaw’s a strategy that I would recommend
would be to further specify their Presidents Choice and Joe Fresh brands by
creating more specific/ higher class brands to appeal to their target market who is
clearly willing to spend a little more to receive better quality. This should be done
by introducing a line of shoes, a line of purses, a line of baby clothes and
paraphernalia to the Joe Fresh brand making it a little higher class while remaining
affordable. They should also introduce a PC line of fine chesses, PC brand of wine
that can only be found in their wine shop in the RCSS, also a PC brand of
organics, all to appeal to their consumer who is willing to spend a little extra on
quality.