Loblaw’s corporate mission statement is “Live Life Well,” and the grocer serves 17 million Canadians each week in its attempt to achieve this goal. By all accounts, the company is considered well run and reaps annual revenue topping $45 billion.
Its inventory turnover is low at 48 days, and the company takes a data-driven approach to business, making good use of proprietary information from its fee-based customer loyalty program, PC Optimum.
When it comes to branding, Loblaw has several banners including discounters No Frills, Maxi, Maxi & Cie, and Box. The grocer also owns the President’s Choice, Life, Joe Fresh, and No Name brands, all highly recognizable labels that induce shopper loyalty.
A new category of the No Name brand, “Naturally Imperfect,” was launched in 2015 for “ugly” fruits and vegetables with cosmetic flaws. The label has proved popular and expanded to include apples, pears, carrots, mushrooms, onions, peppers, and potatoes.
In recent years Loblaw added two established names to its family, acquiring Shoppers Drug Mart and Asian themed T&T Supermarkets. The Real Canadian Superstore chain, launched in 2002, expanded as well.
To more fully focus on core operations, Loblaw sold its gas stations then spun off its interest in Choice Properties to George Weston Limited last year to become a pure play retailer.
This is an excerpt from the most recent Produce Blueprints quarterly journal. Click here to read the full supplement.
