The war between main food retailers seems to become more and more intense, the two giants Loblaw Cos. Ltd. and Metro Inc., both experienced a decrease in its shares about 7.5 per cent and 5.6 per cent, respectively, according to the “Loblaw, Metro earnings show trouble at the grocery till” from the globe and mail. The Loblaw and the Metro both has its margins squeezed in the grocery wars. In addition, because of the entrance of Target, it seems that more and more stores are getting involved into this grocery war.
One of the key to success could be the labour cost. Members of three Loblaw unions had voted to strike by Oct. 6 and it is still reducing its staff of about 134,000 full-time and part-time employees by 275 people. It hopes that by cutting down the cost, it will earn more profits and reduce the stress. Since that Wal-Mart, Safeway, Shoppers and Amazon all join the battle, each company needs to know its weakness, strength, opportunities and threats (SWOT), and find which company it is gonna corporate with and which company it is gonna compete with. By doing so, the company may survive from this cruel battle.
Reference:
The Globe and Mail: http://www.theglobeandmail.com/report-on-business/loblaw-warns-on-profit-for-2013-third-quarter-earnings-drop/article15409879/
CBC News: http://www.cbc.ca/news/business/loblaw-metro-margins-squeezed-in-grocery-wars-1.2425213
The Globe and Mail:http://www.theglobeandmail.com/report-on-business/metro-to-reorganize-ontario-network-close-some-stores/article13751650/
The Globe and Mail: http://www.theglobeandmail.com/report-on-business/loblaw-reducing-work-force-by-275-employees/article14888269/
Picture from: http://www.cbc.ca/news/business/loblaw-metro-margins-squeezed-in-grocery-wars-1.2425213