Loblaw Companies Limited

Weaknesses

• Complicated corporate structure that can affect performance
• Operate as a department store, a field with many strong competitors like Walmart
• Under performing stores due to worthy competition

Opportunities

Strategy

• Improve discount segment to become leading low-price retailer
• Utilize product innovation capabilities
• Expand Joe Fresh style clothing line
• Utilize financial resources to grow the business and pursue promising initiatives

Strengths

Restructuring

• Original idea for Loblaw Companies Limited, at the time known as Loblaw Groceteria, was to be a self-serve, cash-and-carry concept of grocery retailing that sells quality food at low prices
• Growth trough concentration: expanded from a single grocery store in Toronto to a corporation throughout Canada that sells a variety of trusted products
• Growth through diversification: incorporating various businesses under their company like No Frills, Fortinos, Shoppers Drug Mart, and Joe Fresh
• Growth through vertical integration: aquiring Provigo, a Quebec-based grocery store chain, along with T&T Supermarket, Canada’s leading Asian food retailer

• quality and inexpensive products
• Trusted, reputable brands inc. Joe Fresh, President’s Choice, No Name etc.
• Variety of services and produce
• Integral customer service operations
• Increasing annual sales number therefore, good market share position

Code of Ethics

• rough time in the early 1700s due to price wars among major supermarkets and they lost their position as market leader
• In possession of unprofitable stores and an $80 billion debt
• worked to free Loblaws from its long-term leases on failing stores so they could downsize and cut their losses with unprofitable locations
• To restructure, they executed extreme renovations and sales increased 100%

• most recent code of conduct became effective January 31, 2013
• The document is divided into subheadings that clearly outline the company’s principles and details that are necessary for success including these ideas:
• Customers matter most
• We respect each other
• Integrity in all that matters
• Care for community and environment
• Protecting company information and assets
• Protecting the company’s brand and reputation
• Integrity in financial matters
• Getting better everyday
• Consequences for code violations

Threats

• intense competitions
• Grocery sales are growing slower than previous years

Corporate Culture

Mission

• Loblaw’s purpose – Live Life Well – puts first the needs and well-being of Canadians
• positioned to meet and exceed those needs through convenient locations, full-service pharmacies, no-fee banking, affordable Joe Fresh fashion and family apparel, and providing three of Canada’s top consumer brands - Life Brand, noname and President’s Choice

Industry

• Canadian food retailer industry
• Canada’s food and pharmacy leader

• To be Canada’s best food, health and home retailer by exceeding customer expectations through innovative products at great prices
• Driven by responsibility to:

-Respect the Environment

-Source with Integrity

-Make a Positive Difference in Our Community

-Reflect Our Nation’s Diversity

-Be a Great Place to Work

President &

Leadership Style

Competitive Advantage

• Galen G. Weston possesses the style of a democratic leader (committed to task and people, getting things done while sharing information and control; encourages participation in decision making)
• He made additional management changes to give multiple people leading roles such as Chief Merchandising Officer

• established brands
• loyal customers
• product variety

Competitors

• Wal-mart
• Dominion (now Metro)
• Sobeys

Services

Core Values

• Values clarify what is important in the organization, and guide behaviour and decision making. These include:
• CUSTOMERS matter most
• We RESPECT each other
• Getting BETTER every day
• Care for COMMUNITY and environment

Provide a variety of products including:

• a range of groceries (meat, fruits, vegetables, canned products, etc.)
• household items
• clothing
• clothes cleaning services
• baby products
• pharmaceuticals
• technology
• financial services

Corporate Social Responsibility

Future

In terms of CSR, Loblaws takes a proactive approach to its communities and the environment. Their 2013 CSR Report shows efforts in areas such as:

• Animal welfare
• Energy use
• Food safety and waste
• Sustainable seafood
• Vendor standards and audits

Forecasts expect continued sales and earnings increases over the next few years and to at least maintain its current market share.

This is foreseeable through the success of the following initiatives:

• Continued capital investment in its store network
• Expansion of non-food/general merchandise offerings
• Opening of additional gas bars
• Ongoing introduction of new control label products

Technological Advances

Loblaw Companies Limited

• conducted major upgrades to its IT infrastructure, implementing one of the largest technology infrastructure programs in the Canadian retail marketplace
• It drives ordering and inventory efficiencies by initiating store orders to distribution centers and vendors, facilitating perpetual inventory in most product categories
• a secure, chain-wide network that transmits data between its stores, distribution centres and corporate offices and carries debit and credit transactional information from stores to the Company’s provider of credit card clearing services

References

http://www.loblaw.ca/English/About-Us/default.aspx

http://www.loblaw.ca/files/2.%20About%20Us/Corporate%20Governance/2013/Code%20of%20Conduct/Loblaw%20Code%20of%20Conduct%20(EN%20-%20Jan%202013)_v001_j82x2k.pdf

http://www.loblaw.ca/English/Media-Centre/news-releases/news-release-details/2014/Loblaw-Companies-Limited-Announces-Appointment-of-Galen-G-Weston-as-President/default.aspx

http://www.loblaw.ca/files/4.%20Investor%20Centre/Financial%20Reports/2013/Annual/2013_AIF_SEDAR_19-Feb-14_v001_q43xw2.pdf

http://www.loblaw.ca/files/6.%20Responsibility/Loblaw_eng_2013_CSR_May_20.pdf

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