Loblaw Companies Limited Strategic Plan

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Loblaw Companies Limited

Strategic Plan
Presented to Galen Weston Jr.,
Executive Chairman of Loblaw Companies Ltd
and
Professor Imran Saleem,
University of Toronto

Submitted by Group 4 on March 30, 2010

Table of Contents

Loblaw Companies Limited Strategic Plan1
Table of Contents2
Loblaw Companies Limited Summary3
History3
Current Vision3
Short Term & Medium-Longer Term Plan3
Detailed Financials4
Industry and the Competitive Analysis4
SWOT Analysis5
New Vision6
The new Mission7
APPENDIX8
Exhibit 1 – Loblaw Companies History and Market Standing8 Exhibit 2 – Competition8
Exhibit 3- Financial Analysis9
Exhibit 4 – SWOT Analysis10

Loblaw Companies Limited Summary
History
Loblaw Companies Limited is one of Canada’s largest food distributors and has since its conception, expanded its services from providing general merchandise and grocery products to drugstore and financial services. Loblaw owns various operating banners, such as Superstore and No Frills which equally cater to the low price and the high-value markets. Although Loblaw is known for the quality and value of its food, it is committed to providing Canadians with a one-stop destination for their food and household needs. Their strategy is demonstrated time and again in the portfolio of store formats across the country: Simplify, Innovate, Grow. When Galen Weston assumed the chair of the company, the company controlled the Loblaw retail chain in Ontario, which was underperforming, and had ownership interests in scattered retail and wholesale companies in Ontario and other provinces. Under his leadership, the retail and wholesale operations were revitalised, store interiors and exteriors were refreshed to highlight products. For instance, the No Frills brand had a distinct yellow packaging which was easy to recognize and cost little to produce. Through this, a new corporate identity made every Loblaw product instantly identifiable and set new standards for similar products in North America. Current Vision

Loblaw has continuous revised their approach every 3 to 5 years. Whether is it is bringing out a new product line such as No Name and Presidents Choice or revamping their stores to include Joe Fresh original clothing, the constant revising of their corporate vision has allowed them to be part of the market trends and not fall by the way side when new competitors join the industry. They have loyal customers who believe in their approach and are willing to pay a higher premium for quality foods. Loblaw has been unsuccessful in some markets such as Quebec but they know when to cut their losses and move towards the profitable business. Although in the last business cycle they lost money they will be able to start the next cycle with a fresh vision and continue to be a market leader. The continuous revising of their approach has been successful and as long as they continue to monitor the industry they will continue to succeed. Short Term & Medium-Longer Term Plan

In the short term, Loblaw Companies Limited must keep its promise of having fresher foods as well as more stock on the shelves for consumers to purchase. Many of the “Real Canadian Superstores” are deemed to be harder to navigate by consumers because of the quantity of different merchandise located within the store. Loblaw Companies Limited should focus on simpler, easier to navigate Supercentres that compete with the large and well organized Wal-Mart Superstores that have a completely dedicated space to food and groceries. The rest of the general merchandise is located on the completely other end of the store in well organized sections and is much easier to navigate. Additionally, Loblaw should also lower the amount of general merchandise that is in their stores and focus on specific sections of merchandise such as their original clothing line (not small electronics and house wares). In the long term, it is evident that Loblaw...
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