The following highlights also reflect the impact of the consolidation of franchises, the disposition of gas bar
Loblaws location in Bayview VillageToronto By the early 70s, Loblaw was struggling under the weight of too much debt with millions of dollars of financial obligations coming due over the next few years.
At the same time, its stores were badly in need of refurbishing and sales were in virtual free fall. South of the border, things looked somewhat better but only on the surface, with many of the company's supermarkets in large American inner cities in decline. In particular, so-called "lease and leaseback" agreements effectively prevented it from closing many of its smaller, money-losing outlets.
To make matters worse, senior management was often reluctant or intransigent when it came to making operational changes.
Faced with the possible bankruptcy of Loblaws, Garfield Weston asked his youngest son, W. Galen Westona successful entrepreneur and retailer in his own right, to take a close look at the chain to see if it could be saved.
With financing secured through a family holding company that freed Loblaw from its leaseback agreements, Weston began rationalizing operations, shutting down dozens of unprofitable stores while remodelling those that remained. As a store chain, we looked very good indeed.
Galen Weston next brought in Toronto designer Don Watt. Known for his innovative product packaging and use of photography, Watt proposed a complete makeover of Loblaw's corporate image Loblaws companies ltd retail space.
Although Watt had little experience in supermarket design, Weston gave him the go ahead to remodel one of the stores. If it works - good. Along with a complete redesign inside and out, that included new colours and a new repeating 'L' Loblaws logo, Watt made changes to traditional grocery store layout.
He doubled the floor space of the produce department and moved it from the back of the store to the front. He also introduced new design elements such moveable bins and huge photo enlargements of fresh fruits, vegetables and meats to graphically convey quality and freshness.
Wood panelling covered over old walls and broken mirrors to give the interior a fresh, contemporary feel. Within the first few months of the remodelling, sales increased 60 percent.
TV viewers were told that, "More than the price is right But as the company slowly regained market share in Ontario, it began bleeding red ink when it came to its U.
The company initiated a similar program of rationalization and renewal which saw hundreds of stores closed and others remodelled. In Canada, Nabob Foods Limited was also sold off.
One Canadian business magazine described what W. Galen Weston and team had pulled off as a classic turnaround saga: After 10 years of ruthless, painful reorganization, which involved divestitures, acquisitions and massive store closings, he and his team have transformed the Weston-Loblaw group into a lean, profitable, progressive, rational, superbly managed company - a winner and a world leader in what is still a perilous, savagely competitive business.
No name and No Frills[ edit ] Main article: No Frills grocery store No Frills Loblaw also moved to rejuvenate its own private label program by allocating millions of dollars to the development of in-store brands.
In addition to redesigned packaging, the company imposed strict quality control standards. Galen Weston observed there was little point updating packaging only for the consumer to discover that the product inside, that had disappointed in the first place, was no better than before.
Then, inthe company joined the generics movement with the introduction of 16 " No Name " items, marketed in simple black and yellow packaging.
The new line was heavily promoted with advertised savings of between 10 and 40 percent. Since Loblaws introduced its 16 no-name products, it has sold one million units with many repeat purchases.
In several cases, we've sold in two and a half weeks what we originally estimated would be our annual requirements. A year later, the number of No Name products had increased to a hundred different items and represented five percent of Loblaws sales.
Also known as a 'box store,' since items were not individually shelved but left in their cardboard shipping cartons, usually with the front cut away, the new store advertised "the lowest overall prices in Toronto.
In spite of the limited selection and minimal service, the first No Frills store proved a success and within months the company converted two more Loblaws locations to the new deep discount format.
President's Choice While the original No Name line-up was promoted as basic, everyday items at considerable savings, Dave Nichol eventually began experimenting with the product line-up by adding more upscale items.
Products such as Gourmet Barbecue Sauce, Escargot and imported jams began appearing in the familiar yellow and black generic packaging. Nichol concluded that consumers wanted to go up-market and the decision was made to develop an entire line of upscale products under its own private label brand.
Nichol and his team insisted on the use of real butter and twice as much chocolate per cookie as the leading national brand. Although The Decadent was sold in only 17 percent of Canadian supermarkets, compared to 98 percent for Nabisco's Chips Ahoy!
Modelled after the European hypermarketthe "combination store" included a large selection of general merchandise, along with a full supermarket component.Loblaw Companies Ltd is a Canada-based company engaged in food retail and distribution business sector.
The Company operates through two segments: Retail and Financial Services. The Company's. Loblaw Companies Limited Canada's food and pharmacy leader, with a network of corporate and independently- operated stores in communities across the country, and employing close to , Canadians.
Loblaw's purpose – Live Life Well – supports the needs and well-being of Canadians who make one billion visits each year to the company’s stores. When Loblaws was *caught* with bread price fixing they decided to do the honorable thing by offering an apology with a gift card.
However, getting the said gift card is a different story.
First came the ID fiasco that they quickly reversed/5(). Keep up with Loblaw Companies Limited. See more information about Loblaw Companies Limited, find and apply to jobs that match your skills, and connect with people to advance your career. Nov 25, · The company was founded in and is based in Toronto, Canada with additional stores in Ontario, Quebec, and British Columbia.
Loblaws Inc. operates as a subsidiary of Loblaw Companies plombier-nemours.com: () Today, Loblaw Companies Limited (TSX: L, " Loblaw ") and George Weston Limited (TSX: WN, " GWL ") announced that Loblaw has completed the spin out of its % effective interest in Choice Properties Real Estate Investment Trust (TSX: plombier-nemours.com, " Choice Properties REIT ") pursuant to a previously announced plan of arrangement (the " Arrangemen t").