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A drive through home meal replacement store is being

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Unformatted text preview: stores and remodeled stores have a floral department, garden shop, in-store bakery, deli, and pharmacy services. A drive-through home-meal replacement store is being built in Calgary. Canada Safeway has strong private brands. The “Select” label covers premium products. Other brands such as “Lucerne” (dairy products), “Edwards” (coffee), and “Empress” (jam), are popular with consumers. Canada Safeway has two customer loyalty programs: Airmiles™ and Safeway cards. The current challenge to Safeway is managing its costs. Steps taken to reduce costs include closing unprofitable stores, reducing headquarters’ personnel, and improving the efficiency of manufacturing operations. The biggest challenge, however, is closing the gap between its relatively high labor costs and those of its competitors. 2. The Oshawa Group The Oshawa Group, headquartered in Etobicoke, Ontario, is the franchiser in nine provinces for 655 IGA food stores and regionally for 845 Knechtel, Food Town, Bonichoix, and other independent grocers. It operates 105 corporately owned supermarkets, primarily in Ontario and Nova Scotia. The company grew principally by acquiring regional operations. Only recently have these operations been consolidated into three regional food distribution divisions. Each region piloted different information systems that are being adopted nationally. The central region developed 19 Competitors information taken from the various competitors published annual reports, industry analyses by various brokerage houses (e.g., First Marathon, Morgan Stanley, Dean Witter), various articles in Canadian Grocer, Supermarket News, Progressive Grocer, Canadian Business, Financial Post, Globe and Mail and Toronto Star. 10 n KPMG/University of Illinois Business Measurement Case Development and Research Program July 1999o continuous replenishment, the western region developed electronic data interchange (EDI), and the eastern region developed direct-store delivery. The Oshawa Group also will standardize merchandise procurement, human resources, finance, retail store development, and design. The Group focuses on two markets: wholesale and retail servicing of home-consumption (Agora Food Merchants) and restaurants and hotels (Serca Food Services). The latter is Oshawa Group’s response to the growth of ready-prepared foods. Instead of simply selling ready-prepared meals through grocery stores, the Group is supplying alternative food sources. Serca is far and away the largest supplier in its market. In the home-consumption market, the Oshawa Group emphasizes stores in the 18,000 to 40,000 sq. ft. category with some substantially larger stores. In the competitive Ontario market, two new concept stores have been opened. A traditional 15,000 sq. ft. store in central Toronto concentrates almost 50 percent on fresh produce plus meal solutions. A similar emphasis defines the larger IGA Marketplace in Mississauga. These stores avoid head-on competition with Loblaw. The Oshawa Group has a strong and...
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