Who Is Walmart In Canada

Wal-Mart Canada is faced with a major decision regarding whether or not to enter the grocery business in Canada. Wal-Mart entered the Canadian market in 1994 with the acquisition of 122 Woolco Stores allowing them to secure the number one retailer spot in Canada. Wal-Mart is now planning to launch a number of Sam's Club wholesale mega outlets and is considering the launch their first Canadian supercenter. Up to this point, Wal-Mart has dominated most overseas markets within years of entry due to a lack of depth in the markets they choose to enter. In addition, adding a grocery line to stores in those markets has pushed the sales of general merchandise by 30%. However, the Canadian grocery market is more saturated with discount formats and private

The Canadian supermarket industry is a $66.8 billion business with a 4% growth rate. 4% is a strong rate taking into account that Canadians pay the lowest prices in the world for food, and food inflation is around 2%. Loblaw is the market leader in Canadian grocery and holds a market share that exceeds the combined market share of their four nearest competitors. Grocery retailers hold four of the top ten retailer rankings in Canada, and the Canadian grocery market is saturated with a broad spectrum of competitors from stand-alone stores to integrated firms who operate at various levels from local to regional to national. The Canadian grocery market is characterized by a high degree of market concentration, and high levels of discount stores and private

Wal-Mart faces a decision about whether or not to expand their proven superstore model into Canada and the Canadian grocery market. While the Canadian grocery market is relatively concentrated, Wal-Mart holds some unique advantages that would allow them to compete in the market. As already the leading retailer in Canada with a strong foothold among Canadian consumers a Wal-Mart superstore with entry into the grocery market could prove successful. Plus, Wal-Mart's Every Day Low Price strategy already resonates with Canadian consumers. Low switching costs would make it easy for Wal-Mart to win consumers from competitors, and there is little threat to other new entrants into the market. In addition, Wal-Mart holds the unique advantage of incorporating technology into their cost-efficiency strategy. Wal-Mart, unlike Canadian supermarkets who use size and scale to achieve cost leadership, uses technology to cut costs further through a centralized information system to link the operations of stores and suppliers around the world in