TORONTO — Loblaw's turnaround effort is built around what officials call the “formula for growth” — a series of initiatives officials say will help bring the retailer back to its position of leadership in Canadian retailing.
Following, according to company reports and presentations, are those imperatives:
Best Format: Loblaw will focus on three distinct store formats to maximize market share, supported by brand management teams: Great Food (service-oriented conventional food store); hard discount (lowest prices, volume-driven promotions for shoppers willing trade off brands and service for price and convenience); and Superstore (family-oriented one-stop shops including food, home goods and apparel).
Fresh First: A goal to provide the best fresh food in Canadian grocery.
Control Label Advantage: A plan to increase penetration of private-brand foods to 30% of total sales, up from its current level of 24%, through new product development.
10% Joe: A vision to grow the proprietary Joe Fresh Style brand to $1 billion (Canadian) in sales through extensions to children's clothes and intimates, and the expansion of departments to all stores more than 80,000 square feet.
Health, Home & Wholesome: A focus on making healthy living affordable through proprietary Blue Menu (healthy options) and PC Organics food lines as well as fresh foods.
Priced Right: A commitment to providing best value for money when compared to all relevant shopping choices. Investments in price will be made wherever relevant.
Always Available: A program that addresses in-store availability and replenishment with a goal to provide the best in-stock positions of any retailer.
Friendly Colleagues, Motivated to Serve: Investments in training, employee discounts and hiring to assure better customer service.