Canada has always been increasingly influenced by the American culture, and some may say that they are taking over our markets. From TV shows to music, they’re dominating almost every industry, even beating us at our own sport, hockey.
According to Porter’s Five Forces, a low barrier to entry makes it easy for substitutes to enter the market. And since buyers are powerful in the industry of retail, it is easy for them switch between substitutes, looking for the best deal possible. Metro Inc, Canada’s No.3 grocery store has been hit hard by the gruesome competition of U.S retailers that have been increasing in our home market. Target has stormed into the Canadian market this year, with “plans to have 124 Canadian stores by the end of the year”, and “hopes of growth over the next five years”. However, Metro is planning a comeback with plans to invest $250 million and converting half a dozen of their stores into Food Basics discount outlets. Sounds a lot like Costco if you ask me. Metro is confident that these measures, along with “efficient merchandising strategies” will bring them out of the gutter. Hopefully their fate will be better than of those still waiting for the Vancouver Canucks to win a Stanely Cup.
Metro Store
“Metro’s Profit Falls as Competition Intensifies from U.S. RetailersAdd to …” The Globe and Mail. N.p., n.d. Web. 17 Nov. 2013. <http://www.theglobeandmail.com/report-on-business/metros-profit-falls-as-competition-intensifies-from-us-retailers/article15410066/>.
“Romania-Insider.com.” RomaniaInsidercom. N.p., n.d. Web. 17 Nov. 2013. <http://www.romania-insider.com/with-new-store-in-bucharest-metro-cash-carry-reaches-eur-500-mln-investments-in-romania/>.