Loblaw Companies Limited SWOT and PESTLE Analysis

Strength

1. Canada’s leading retail and pharmacy chain offering a diverse portfolio of products & services: With the aid of its five operating divisions, Loblaw strives to be the most preferred company in food, health and beauty. The company operates through stores and pharmacies present in numerous Canadian communities, within 10 kms of which nearly 90% of the Canadian population resides. In this way, it stays associated with its target communities and efficiently helps its customers to lead better and healthier lives. The five operating divisions of Loblaw are namely the Market division that operates over 475 stores, the Discount division operating over coast to coast 117 Real Canadian Superstore locations, 114 Maxi, 13 Extra Foods, and 263 No Frills stores, the 1,300 Associate-owned stores, retail outlets, specialty drug distribution network, pharmacy services and retirement communities, a generic drug manufacturer, and an electronic medical records platform-operating Shoppers Drug Mart, the Joe Fresh collection and the PC Financial services.

2. Omni-channel distribution channels for a digital experience: Loblaw is an omni-channel operating company which takes pride in running its distribution network through the country’s multiple top store banners as well as layering in the kinds of digital customer experiences through online platforms. In 2019, the company invested $1 billion in store renovation, and in pursuit of offering the best services in Food, Health and Beauty. It introduced new services like a full range of fresh meal kit solutions under the President’s Choice brand.

Loblaw strives to be present in the lives of its customers in both online and offline channels. The company launched an online platform for nationwide sale of medical cannabis, and inaugurated 14 enhanced beautyBOUTIQUE locations in 2019. It invested in its Everyday Digital Retail strategy as a complement to the physical assets. As a matter of fact, Loblaw generated revenue of over $1 billion dollars from its digital platforms in 2019. Also, the company opened up its first standalone online grocery pick-up location in the Greater Toronto Area. Furthermore, as a supplement to its delivery partnership with Instacart, it continued building hub-and-spoke pick-up locations at transit stations in major urban cities

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Weakness

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Opportunity

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Threats

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Political

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Economic

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Social

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Technological

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Legal

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Environmental

1. Adoption of a carbon reduction strategy to reduce the greenhouse gas emissions: As part of its commitment to the Paris Agreement on Climate Change, Canada has made commitments to reduce carbon emissions by 30% by 2030. In support of its country’s goals, Loblaw having recognized itself as one of the largest carbon emitters through its retail store operations, strives to lower its emissions without adverse impact on economic growth. The company has already reduced its emissions by 26.1% by 2018 and made further commitments to reduce its carbon footprint by 20% and 30% by 2020 and 2030 respectively, relative to a 2011 baseline. To achieve these goals, it has come up with a comprehensive carbon reduction plan by collaborating with climate experts. As of now, the company’s strategy strives to lessen the greenhouse gas emissions from the retail stores, distribution centres and offices, by concentrating on electricity and natural gas consumption, refrigerant leaks, transportation fuel consumption, and waste disposal and diversion.

2. Commitment for food waste and landfill waste reduction: As a part of adopting sustainability strategies, the corporations across the globe are committing themselves to the recent trends of reducing food waste and landfill waste. Loblaw Corporation has undertaken a plastic bag reduction program and by including a purchasing fee of the bags, it has eliminated approximately 13 billion plastic bags from landfill since 2007. A part of the sales revenue obtained from the sale of these plastic bags are donated to the WWF-Canada as extending the company’s support towards a variety of programs across Canada. Loblaw has made commitments to reduce food waste by 50% by 2025. Moreover, the company has promised to improve waste diversion rates from 61% to 80% in corporate stores and from 88% to 95% in distribution centres. Moreover, as of 2019, Loblaw is considered as one of Canada’s largest food bank donors with over 11.5 million pounds of food donated to food banks and food recovery agencies in the area of reclamation.