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jerryking : buying_power   6

Loblaw’s big bet on thinking small - The Globe and Mail
Jul. 16 2013 | G&M | SUSAN KRASHINSKY AND JOSH KERR.
(Charles Waud & WaudWare)
The push into the small-format direction is driven by changing consumer habits, as demands on time force consumers to look for more one-stop shopping solutions in their neighbourhoods, without having to drive to bigger retailers. The convenience store industry has already responded by attempting to alter its down-market image and offering more fresh foods. Loblaw has integrated pharmacies, as well as health and beauty products, into its locations. And along with Shoppers, drugstores have increasingly been selling everything from digital cameras and iPods to milk and dry goods, household items, and expanded beauty products.

This not only helps those retailers to market themselves to busy, younger urban shoppers, but it also addresses Canada’s aging population. Seniors are the fastest-growing demographic group in the country, and prefer to stick closer to home when running errands, Mr. Tyghe observed. “It’s very much about proximity and convenience.”

While the new general store model has worked for Shoppers – the price per share of Loblaw’s offer represents a 27-per-cent premium to Shoppers’ closing price a day before the announcement – there is room for Shoppers to improve in its food offerings, said Doug Stephens, author of The Retail Revival. The challenge, he said, will be to augment that section with some of Loblaw’s products without disrupting the overall shopping experience.

“They have to be very careful with the Shoppers Drug Mart model – a lot of allegiance there,” Mr. Stephens said.

Ultimately, the advantages for Shoppers stem from the buying power the chain inherits, which will allow it to provide whatever product mix works for changing consumer habits at a lower cost.

The “buying clout and synergies” Shoppers would gain post-acquisition will prompt competitors to find ways to match these benefits, said Kevin Grier, a senior market analyst at the George Morris Centre
big_bets  buying_power  convenience_stores  digital_cameras  downsizing  grocery  Loblaws  mergers_&_acquisitions  one-stop_shop  pharmacies  post-deal_integration  proximity  retailers  Shoppers  size  small_spaces  store_footprints  supermarkets  supply_chains  Susan_Krashinsky  synergies  time-strapped 
august 2013 by jerryking
THE EVE OF BATTLE
Oct 2006 | Canadian Grocer 120. 8 (): 38-39,41,43. | Andrew Allentuck

Wal-Mart's success in the U.S. was built on conquering the fragmented and relatively inefficient grocery market, says [John Chamberlain]. But Canada is likely to be different. "It it were a slam dunk, Wal-Mart's Supercentres would have been here a lot sooner. If you read into the time they have taken to arrive, there is a recognition that this market is going to be very challenging." As award-winning Business Week senior writer Anthony Bianco said, in The Bully of Bentonville (Random House, 2006), "It is far from certain that even Wal-Mart can thrive in a Wal-Mart world."

What will Canadian retail grocery be like a few years down the road? Chamberlain figures that Wal-Mart will take over packaged goods. "It can dominate the field. Everybody knows what a box of detergent should cost and nobody wants to pay 40% more at a competitor," he says. By sheer massive buying power, with savings passed along to consumers, Wal-Mart will take a lot of the centre store grocery. Rut in differentiated goods, from lettuce to meat, bakery to meal replacement, the market may not tumble to Wal-Mart. To the extent that people are prepared to pay more for quality or even just differentiation, Wal-Mart will have trouble maintaining its winner-takes-it-all momentum, he suggests.

There is also the union question. In China, faced with the pro-union policy of the incumbent government, the company has agreed to work with them. Chinese unions are not trenchant opponents of management. Rather, they work at "promoting good relations between employers and workers," reports the Wall Street journal. If unions did capture Wal-Mart Supercentres, they might raise payroll costs and hinder the company's aggressive cost reduction strategy. Wal-Mart may remain hostile to unions in North America. It shut its Jonquière, Que. store after it was certified by the United Food and Commercial Workers union. The February 2005 shutdown sent a message that was undeniably clear. Bomb threats and temporary store closings followed, Bianco recalls. The cost of Wal-Mart's image was huge, but, as Bianco admits, "The allure of cut-rate prices and convenient locations is not easily resisted."
ProQuest  buying_power  Wal-Mart  grocery  Metro  Sobeys  Loblaws  fragmented_markets  retailers  CPG  winner-take-all 
july 2012 by jerryking
Degree Of Challenge
May 1, 2003 | American Demographics |Byline: SANDRA YIN

Despite modest individual earnings, college students as a whole represent a multibillion dollar market. The allure for marketers is the opportunity to lock in relationships with the future's more affluent consumers while they are still in school, when they are open to experimenting with products and sharing their opinions with their peers. The first step is to understand college students' attitudes and purchasing behavior. Today, among the most cost-effective media for reaching students on campus is the old college newspaper. At least 72% of college students report having read one of the past five issues. In addition to traditional media, guerrilla marketing, or viral marketing, has proven effective in spurring word of mouth. College students are trendsetters and early adopters who may be a first step to reaching broader market segments. Though marketers may encounter challenges as they build relationships with these young adults before they begin their financial ascent, the trouble may well be worth it.
Colleges_&_Universities  students  challenges  mass_media  guerrilla_marketing  millennials  buying_power  purchase_decisions  locked_in 
july 2012 by jerryking
The U.S.S. Prius - NYTimes.com
By THOMAS L. FRIEDMAN
Published: December 18, 2010
Spearheaded by Ray Mabus, President Obama’s secretary of the Navy and
the former U.S. ambassador to Saudi Arabia, the Navy and Marines are
building a strategy for “out-greening” Al Qaeda, “out-greening” the
Taliban and “out-greening” the world’s petro-dictators. ...If the Navy
really uses its buying power when buying power, and setting building
efficiency standards, it alone could expand the green energy market in a
decisive way.

And, if Congress will simply refrain from forcing the Navy to use corn
ethanol or liquid coal — neither of which are clean or efficient, but
are located in many Congressional districts — we might really get a
green revolution in the military. That could save lives, money and the
planet, and might even help us win — or avoid — the next war. Go Navy!
buying_power  green  U.S._Navy  USMC  Tom_Friedman  petro-dictators  petro-politics 
december 2010 by jerryking
Macy's Clout Drives Supplier Consolidation - WSJ.com
MARCH 23, 2010 | Wall Street Journal | By RACHEL DODES.
Macy's Buying Clout Drives Supplier Consolidation. Shirt-Maker Van
Heusen's Bid for Tommy Hilfiger Expands Its Portfolio While Raising Its
Profile With Department Store.
Macy's  retailers  consolidation  supply_chains  supply_chain_squeeze  buying_power 
april 2010 by jerryking
A high-tech sports revolution
Jan. 09, 2010 | The Globe and Mail | by Stephen Brunt. The
boomers and their buying power are heading toward the sunset, and the
talk in the sports business now is about how to attract and hold a
different generation, with a different, diminished attention span,
accustomed to having the whole world laid out for them, every minute of
every day, literally at their fingertips.

Getting them out of their homes and into the building or into the
ballpark, getting their eyes to linger for more than a few seconds as a
game flickers across a screen – not to mention the advertising that pays
the freight – has become the core challenge.
sports  consumption  Stephen_Brunt  revolution  arenas  future  challenges  LBMA  sports_marketing  baby_boomers  millennials  attention  advertising  buying_power  stadiums  attention_spans 
january 2010 by jerryking

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