To compete with rivalling company giants Wal-mart Stores Inc. and Loblaw Companies Limited, who’ve already implemented groceries onto their shelves, Zellers follows in these footsteps to maintain equal footing in the markets.
As mentioned in Aman’s post: “ZELLERS’ FRESH SCHEME”, he covers that though food may be attractive enough to increase customer volume, there will be the continuous existence of risks, solid competitions, and long term investments in preservation of this regime. Agreeing and adding on to that, though Wal-Mart Supercentres and Zellers’ grocery line have faced success so far, the two companies’ trial runs were in the likes of Saskatchewan and Winnipeg respectively. They have yet to reach more urban markets (i.e. Toronto, Vancouver etc.) where there will be certainly a wider variety and selection of competitors than each other.
Resembling Canadian Tire’s own project of adding home appliances to its shelves, one wouldn’t think “Canadian Tire” to get a blender. Similarly, when one thinks groceries, they would more likely imagine Superstore rather than Zellers. Zellers must strengthen its marketing strategies and brand positioning, or repositioning, to accommodate this new direction. If done well however, Zellers can be paving its way to another milestone in its history.