Our goals are to exceed industry averages and to reach a 98% “Always Available” target in food and 95% “Always Available” target in general merchandise.
Grow
Loblaw’s Formula for Growth, which focuses on what matters to customers – from our unique products to making sure that we are always in-stock, will guide our growth strategies and tactics. For instance, one issue is that our store formats are no longer distinctive enough. We believe that we can significantly reduce our cost base so that we can reinvest in stores and provide better customer service – while at the same time creating more value for shareholders. Our growth aspirations are that each of our three retail formats – Superstore (like the Real Canadian Superstore), Great Food (like Loblaws) and Hard Discount (like no frills) – will have format-leading comparable store growth and that Loblaw as a whole will grow market share in every region of Canada.
Formula For Growth
“Best Format”: The Real Canadian Superstore (“RCSS”) will be the key platform for growth. We will continue to redesign and refit these stores to appeal to all customer segments, with our first redesigned RCSS in Ontario to open in the fall of 2007. At the same time, our Great Food stores will focus on customers who simply want outstanding food, while our Hard Discount format will continue to serve customers who desire convenience and great value. We will strive to ensure that the store format is the best one for each site.
“Fresh First”: Fresh First continues to be a strategic imperative for Loblaw. A “Fresh Walk” process is being introduced to measure and sustain high standards across all of our formats. Loblaw is committed to raising presentation and quality standards, while minimizing waste, to match the best in North America.
“Control Label Advantage”: Our control label brands, including President’s Choice, no name and Joe Fresh Style, will be at the centre of our culture of innovation. In the next three to five years, we seek to achieve 30% of total sales from our control label products.
