LOBLAW OFFERS CELL SERVICE

Wendy Toth

TORONTO -- Loblaw here recently became the latest retailer in North America to offer a cell phone service, branded under its private-label line, President's Choice, and in partnership with Bell Mobility, also here.

"The business model here is generally a contractual relationship where Loblaw is a reseller," said Marina Amoroso, U.S. wireless/mobile analyst for The Yankee Group, Boston, Mass.

"President's Choice is running the service on Bell Mobility's network but selling the service in Loblaw stores and with their own offerings," said Nessa Prendergast, spokeswoman for Bell Mobility. Loblaw declined to comment.

The advantage for Bell Mobility is that "they are consistently paid by Loblaw with no acquisition fees or cost to retain customers," Amoroso said.

The move to store-branded wireless service is a natural reaction for a retailer that has its own brand of generic consumer products, Amoroso said. "A recurring and loyal customer base who will consistently come back for easy replenishment already exists and opens the door to innovative offerings like text message promotions and coupons, as well as payment through a phone device or cash back in wireless minutes."

Other retailers offering a similar service in North America include Sears Canada, Toronto, and 7-Eleven, Dallas, which last year introduced its Speak Out Wireless service in the U.S. In Great Britain, supermarket chains Tesco and Sainsbury offer wireless services.