LOBLAW 2

[robharris]

How are The Real Canadian Superstores positioned in the food retailing
market relative to Wal-Mart Supercenters and other Canadian producers?

[Priscilla Scotland]

I think they are at a disadvantage because their supply chain
logistics are not as efficient as Wal-Mart, so they are spending more
to deliver products that aren't as fresh.

[r_nei...@yahoo.com]

I think that The Real Canadian Superstores (TRCS) have a "yet to be
fully developed" position against Wal-Mart & other Canadian producers
in the food retailing market. TRCS is very reactionary to Wal-Mart's
operational & structural practices. TRCS, or its parent Loblaw, held
high market share before talks of Wal-Mart's entry into the Canadian
market. Upon new entry talks, TRCS felt it needed to change their
competitve structure, but ultimately changed their identity of which
retail market it was catering. This thought process has removed in a
sense any idea of an identity for TRCS. Until TRCS fully develops a
process or idealogy of their identity, they will have a weaker
position to Wal-Mart and any other Canadian producer in the future.

On Nov 18, 4:38 pm, robharris <rob.harris....@gmail.com> wrote:

[fass...@yahoo.com]

I agree with Neil. Loblaw's had poitioned its superstores similarly
to its grocery stores which had high quality products. Upon hearing
about Wal-Mart, Loblaw's looked for ways to be more inline with the
Wal-Mart strategy which was when it opened the Real Canandian
Superstores. As Neil said, Loblaw's did not think through this
strategic plan. The stores did not have the merchandise or image it
needed to be a one-stop shop like Wal-Mart was.

[snk...@yahoo.com]

The Real Canadian Superstores and Walmart are positioned as
hypermarkets, or one-stop shopping destinations. Both focus on low
cost, but The Real Canadian Superstores utilize a deep discount
pricing strategy and Walmart utilizes an every day low pricing
strategy. Walmart's competitive advantage is economies of scale and
distribution and The Real Canadian Superstores are very poorly
positioned in this regard.

Other Canadian producers focus on a large assortment of fresh food
based on the needs of a more sophisticated Canadian consumer market
and have tried to position themselves outside of The Real Canadian
Superstores and Walmart's target market.
Shannon

On Nov 18, 4:38 pm, robharris <rob.harris....@gmail.com> wrote:

[robharris]

Leave your name please

[Gini Stieger-Lawson]

I agree with Shannons response that the Real Canadian Supermarkets are
hypermarkets. Walmart has much more experience in this discount area
where Lodlaw does not. Loblaw should have focused on their
competitive advantage achieved from their premium grocery stores
continuing to provide fresh produce and groceries. Walmart's
experience with logistics and distribution are difficult to compete
with. Even though Loblaw is not a new entrant to the Canadian market,
the company is a new entrant to the discount market where Walmart has
an advantage.

> > market relative to Wal-Mart Supercenters and other Canadian producers?- Hide quoted text -
>
> - Show quoted text -

[Priscilla Scotland]

What I'm getting from all the comments here is that Loblaw needs to
redefine itself in terms of what industry they want to compete in. If
they choose high scale groceries then they are not truly competing
with WalMart on a one to one basis and should realign their strategy
to continue differentiated growth through its high quality products -
possibly discontinuing the Real Canadian Superstores or sub-branding
them to be general merchandise stores only that only compete with
certain aspects of Walmart.
Priscilla.Scotland

[tiffany neff]

Another major difference between The Real Canadiaion Superstore and
Wal-Mart is inventory control. The Real Canadian Superstores lacks
product and inventory restocking. Compared to Wal-Mart where inventory
control is postioned extremely well. There is always stock in Wal-
Marts stores as compared in the Canadian Superstores where certain
items may be out. This is a disadvantage for The Real Canadain
Superstores compared to Wal-Mart becuase consumers get frusturated and
then will go to store where they know a product will be on the
shevles.

On Nov 21, 4:30 pm, Priscilla Scotland <priscilla.scotl...@gmail.com>
wrote:

> > > - Show quoted text -- Hide quoted text -

[Patrick Casey]

I think another thing to consider is that the Real Canadian
Superstores position themselves as a grocery store that provides
additional retail, while Walmart positions itself as a retailer that
provides groceries. It said in the case that some people that were
expecting a grocery were upset about the retail "noise" that got in
the way of their grocery shopping. They need to make sure the
customers know what they are getting into.

[Curtis Lucas]

Wal-Mart has the logistics and supply chain in place to handle the
outrageous amount of SKUs that it handles. Given they have taken
decades to develope their supply chains and logistics and distribution
chains I see not realy comparison between the TWO.

[Stephanie Kruthaupt]

In my opinion, how Loblaw thinks they are positioned internally,
verses how the consumer actually sees them positioned are 2 different
things. This is leading them to be more reactive to Walmarts entry
than proactive.
To a consumer, they dont really have a point of difference. They just
are just a facility that provides grocery's. Loblaw thinks that they
provide a point of difference through either fresh goods; or low
prices. However, with the entry of Walmart, they will no longer be
positioned as the low cost provider, so that can not be their point of
difference moving forward. Walmart will always win the low cost
battle. In my opion, they really need to focus on What is their
positioning as the Real Candian Superstore next to Walmart.

If I were on their management team, I would focus on fresh and
convenience. The problem with Walmart is even though they are low
cost, shopping at Walmat isn't always the quickest thing. So if you
can provide fresher ingredients and foods; and make the shopper
experience even quicker and easier, that would attract a totally
different consumer.

[Brent Bascom]

There are terrific points by everyone and I absolutely agree with two
primarily. A.) Real Canadian Superstores are at a significant
competitive disadvantage to Wal-Mart primarily due to their lack of
efficiency with regards to the supply chain and their logistics
operations. B.) Curtis made an incredible point. Wal-Mart was able
to achieve this advantage over the course of decades. To compare these
two companies as apples-to-apples is a bit premature. Obviously, Real
Canadian Superstores is trying to position themselves as Wal-Mart's
competitor but that cannot be achieved on such a short time scale. I
believe this business strategy will eventually be successful (assuming
certain deficiencies are overcome) for this primary reason: they will
be viewed as a "homegrown" alternative to Wal-Mart.

[Patrick Casey]

I think that someone will eventually overtake Walmart, but I think it
will likely be in a fashion similar to how they overtook the previous
retail leaders. By offering something similar, but a little
different. This way they can gain market share while being viewed as
a non-threat by Walmart, and then when they get a good grip they can
rip the rug from under Walmart. Loblaw is not going to sneak up on
anyone because they are the current leader. They need to protect that
lead, not plan for Walmart to overcome them and then attack. Its like
they are planning to lose. I think everyone realizes that entering a
low cost price war with Walmart is like a suicide mission. Loblaw
needs to focus on what they are now, and who their competitors are
now. Will Walmart be a competitor in the future, probably, but I
think Loblaw would be best served to focus on their current strengths
that have made them a market leader, quality, freshness and good
shopping experiences. They need to consider Walmart, but perhaps as a
long term goal. I think they would be better suited to compete with
Walmart from different fronts, not as a toe-to-toe competitor.