When most people think of Zellers, the following words/phrases come to mind: inferior to Wal-Mart, cheap goods, the color red. Notice how fresh food isn’t on that list?
Adding fresh food won’t be easy for the discount retailer giant, but chief executive officer Mark Foote says they’re ready. Zellers has been struggling to keep up to Wal-Mart, which has been offering fresh food in its superstores for years. The capital required for such a venture is huge – refrigerated storing devices are the most obvious, but there will also be costs involved in new transport mechanisms, and goods will perish if not sold.
Martin Gooch, director of the Value Chain Management Centre, said “It’s a risky strategy… Zellers is not known for food… to do fresh food well is challenging.” (http://www.theglobeandmail.com/report-on-business/zellers-gets-fresh/article1686833/)
So, can Zellers pull it off? Based on the evidence, it is undoubtedly going to be a long, hard road.



