Walmart.

MISSION

Loblaw Companies Limited’s mission is to be Canada’s best food, health and home retailer by exceeding customers’ expectations through innovate products and great prices

VISSION

Loblaw is committed to a strategy developed under three core themes like simplify, innovate and grow.

Background of the company

Loblaw Companies Limited is one the most and largest wholesale food and retailer in Canada. Loblaw is focused on food retailing. In 1953 George Westorn decided to acquire the majority interest in a company called Loblaws Groceterias. Three years later George W. incorporated the company as Loblaw Companies Limited and created a food empire, buying other grocery manufactures, retailers and wholesales in Canada. Loblaw had a good opportunity when its entries in the Canadian Market because they did not have good competitors so they take an advantage of that and became in one of the leaders on Groceries’ Market The most important Loblaw’s Corporate stores by acquisition were Provigo, Maxi, Extra Food, The Real Canadian Superstore, Zehrs Markets and others.

The company was focused on Canadian expansion and for that reason they were operating under a lot of number of banners. Loblaw has the market share leader among Canadian supermarket operations.

But although they had the power of the groceries market, In 2007 The Company announced that they would write down its earnings by about $900 Million. With this revelation some of the unprofitable stores of Loblaw had to be closed. In addition they fired underperforming employees. Executive manager said that they lost some part of their earnings because the groceries were not offering that the costumers wanted, they had a lot of empty shelves, high prices and of course a lot of not satisficed costumers. These aspects were not the unique troubles; they gained a big competitor called Walmart. Walmart decided to entry in Canadian Market to take part of all ignored target market, offering low prices, special promotion, good service, fresh food and all of these in only one supercenter.

Afterwards Managers decided to develop the President’s Choice private label line or also known as generic brands and launched a promotional campaign for this brand’s merchandise. They created this kind of private label to make a distinction for their competitors.

In The last years Loblaw decided to draw different goals for example they said that they really wanted to become in the low-price leader in all its markets. To reach that Loblaw stopped to invest in acquisitions of conventional supermarkets and focused on creating its major discount.

Current Corporate Strategies

• Diversification of products.

• Lower prices for selected items.

• Reducing stores space.

• Close unprofitable stores.

• Develop private labels.

• Make contracts with unionized employees.

• Acquisitions of small groceries.

• Improving costumers service.

Key Question:

 How could Loblaw Companies Limited improve and go on expanding their Market Share?

 What strategy should Loblaw Companies Limited follow to maintain its low prices and continue expanding their market share?

Corporate Governance:

The Board of Directors and management of Loblaw are committed to corporate governance practices. They think that practice contribute to the effective management of the Company and its achievement of strategic and operational objectives which continually evolve to effectively serve for stakeholders and the communities.

 Galen Weston Jr., offers his services as executive chairman of Loblaw Companies Limited since his father decided stepped down.

 Mark Foote, is the president of Loblaw since 2001

 Dalton Phillips, is the chief operating officer of Loblaw since 2007

 Allan Leighton, former non-executive Chairman of Loblaw Companies Limited Since 2008.

CURRENT SITUATION:

Canada is considered as self-sufficient in the basic food products. It has big natural resources and we can said that Canadian spend more money in food than clothing and for that reason we think that it is one of the main aspect because the most important food retailers entry in this market .

In our case the company Loblaw decided to entry in the Canadian market, leaving the American because they considered that they would be the leaders in supermarkets, in this country and got expansion in the market easily.

The ex-executive manager of Loblaw Mr. Weston decided to make some acquisitions of the small and famous groceries in Canada to entry in an easy way to the grocery market.

Loblaw decided to incorporate a private label line called President’s Choice and No - Name as their principal and strong strategy to make a wide difference with the competitors. These private labels were promoted on television and report flyers. We can mention that Loblaw decided to implement only high quality products in their stores. Because they think the costumers are not only focused in national products, they are looking for quality brands. Other strategy that the company decided to launch was a new organic products line.

Loblaw operates more than 1500 corporate, franchised and associated stores under different banners in Canada. Their stores offered more than 7000 private labels products. So for that reason Loblaw stopped investing in the acquisition of conventional supermarkets. They preferred to be focused on building its major discount format. An interest point according with the analysis is that Loblaw also decided to close up a lot of small groceries and created or converted them into superstores as the well-known The Real Canadian Superstores. They include in this supercenter different services as a photo-shop, dry cleaning, a bank, a medical clinic and a women fitness center. According with we have read we can say that Loblaw took this decision to control their biggest competitor called Walmart.

With the distribution, Loblaw implemented a strategy that consisted on consolidated the distribution company centers from 32 facilities to 26, with the hope to increase the efficiency of the supply system. The company also decided to close a lot of old warehouse and opening new ones.

Managers decided to

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