“I personally got a flash of how ready [Canadian Consumers] are earlier this month, when we launched a Green Shopping Bag, which contains more than 85% recycled materials such as plastic bottles“, wrote Galen Weston Jr. in the Globe and Mail Report on Business, in a manifesto of sorts last Monday April 23rd.
Galen, the newly minted Executive Chairman of Loblaw Company, demonstrates the kind of leadership at the young age of 33 required to evolve in the current climate and perhaps slow the insurrection of Wal-Mart on our Canadian turf. “In an era when every product seems to be slapping on a coat of green, consumers are justly cynical about fads and conversions. They want to be sure that a retailer’s commitment is more than marketing deep“, he also wrote. I am touched by his courage and transparency, not limited to this article but also in his persistent, open declarations about Loblaws own mistakes.
It wasn’t enough that Loblaw created the President’s Choice brand envied the world over. Not to mention the NoName brand that inspired many more. It’s no wonder with its batting average that the company bravely foisted its strong and growing Canadian store brands into the merchandise field in response to Wal-Mart. This was to become their Achilles; but, perhaps not. Those “vulture” funds can slow their spiralling toward Loblaw because this one has fallen and IS getting up.
You see, I have always admired Loblaw and feared losing it to US control as we did HBC; Galen’s public declaration gave me hope. When great Canadian companies in trouble do the right thing–we must give them their due. We must trumpet them. I believe the new management including Mark Foote (formerly of Canadian Tire) will transform Loblaw into a worthy adversary to Wal-Mart starting with the The Real Canadian Superstore.
Everyone has a different lens about what Loblaw should do but in the end it is the customer that makes or breaks the business. Much of what drives customers to Wal-mart is fictitious including its value and price-point. I could quote chapter and verse on their trangressions against customers, employees, women, communities, suppliers, the needy (did I leave anyone out?). The personification of this behemoth as a bully is not misguided. Do we want Wal-Mart or Loblaw to dominate the merchandise/food retail sector?
On a strategic front, these two rivals are often far from each other geographically–the battle should be fought in the same parking lot. There the distinction can be palpable. Right now it seems to be an urban battle; smaller CMAs do not house its RCSS model but Wal-Mart tend to. Frankly, I believe Loblaw have too many different banners: Fortino’s, Zehrs, Loblaws, Real Canadian Superstore, Independent, No Frills, Provigo (Quebec). This fragments meaning for all.
“I’m actually very bullish about the sector stepping up to the [environmental] challenge. For one thing, the commitment of some of the largest players–like Loblaws Cos. Ltd.–is firm and long term. For companies like ours, there is no going back.”
Go Galen.
