SWOT Analysis of Loblaw Companies Ltd

SWOT Analysis of Loblaw Companies Ltd

This is a detailed SWOT analysis of Loblaw Companies Ltd. It aims to provide the readers with insights into the strengths and the weaknesses of Loblaw Companies Ltd. It also aims to examine the future growth opportunities and threats that the company should pay attention to. Loblaw Companies Ltd is the leading food and pharmacy retailer in Canada. It has been in operation since 1919.

Strengths of Loblaw Companies Ltd

Loblaw Companies Ltd is Canada’s food and pharmacy leader. It has over 2400 stores across the country. 90% of Canadians live within 10 kilometers of one of its stores (Loblaw Companies Ltd, 2021).

Loblaw is one of the top 100 employers in Canada. It has over 190,000 full-time and part-time employment positions. It has excellent reward programmes such as PC Financial^® and PC Optimum^TM  to retain customers and achieve their satisfaction.

Corporate social responsibility (CSR) plays a big role now-a-days in building corporate image, and it can be safely said that Loblaw has done well in this regard. For instance, donating millions of pounds of food through its rescue partner Second Harvest, launching a new programme called “Half Full” and “Ripe” to educate and help consumers reduce food waste at home, and partnering with the Zoo Share project in Ontario to convert food waste into renewable power are some of the examples to consider in this regard (Loblaw Companies Ltd, 2021).

Loblaw Companies Ltd operates several independent divisions e.g. Loblaws, Shoppers Drug Mart, No Frills, Joe Fresh, President’s Choice, No Name, and Life Brand. It generated approximately 52.71 billion Canadian dollars in revenue in 2020 (Blazquez, 2021).

Weaknesses of Loblaw Companies Ltd

Discussion on limitations and weaknesses is another important area in the SWOT analysis of Loblaw Companies Ltd. Loblaw operates in Canada only. Therefore, any significant changes in this market may turn out to be challenging for it.

Several controversies over the years have impacted on Loblaw’s corporate image badly. For instance, it was criticized for receiving $12 million donation from the Canadian government to make its refrigerators and freezers more energy efficient. Campaigners argue that the company makes billions of profits every year while still does not hesitate to receive government detonation at a time when hard-working and low-income families struggle to make ends meet (Rabson, 2019). It was also accused of price-fixing in the past.

Opportunities for Loblaw Companies Ltd

Though Loblaw has a good number of stores in Canada, it can grow further by opening new stores in the country. It can also diversify in other areas of business. Similarly, possibility of expanding operations beyond the domestic border is worth exploring.

Threats to Loblaw Companies Ltd

Competitors may often be disruptive. Though Loblaw is the market leader, it has several giant competitors e.g. Sobeys, Metro Inc., and Federated Co-operatives Ltd. Likewise, digital security breaches can be troublesome as well. It is worth mentioning that Loblaw’s websites suffered breaches in the past that had caused consumer concerns and dissatisfaction.

We hope the article ‘SWOT analysis of Loblaw Companies Ltd’ has been useful. You may also like reading PESTEL analysis of Canada (Canada country profile). Other relevant articles for you are:

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Last update: 19 November 2021

References:

Blazquez, A. (2021)  Revenue of Loblaw Companies Limited Canada 2012-2020, available at: https://www.statista.com/statistics/436618/revenue-of-loblaw-canada/ (accessed 19 November 2021)

Loblaw Companies Ltd (2021) Who we are, available at: https://www.loblaw.ca/en/who-we-are (accessed 18 November 2021)
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Rabson, M. (2019) Liberals under fire after announcing more than $12M in funding to Loblaw, available at: https://toronto.ctvnews.ca/liberals-under-fire-after-announcing-more-than-12m-in-funding-to-loblaw-1.4373026 (accessed 10 November 2021)

Photo credit: Loblaw Companies Ltd/Facebook

Author: Joe David

Joe David has years of teaching experience both in the UK and abroad. He writes regularly online on a variety of topics. He has a keen interest in business, hospitality, and tourism management. He holds a Postgraduate Diploma in Management Studies and a Post Graduate Diploma in Marketing Management.