News: Loblaws Confirms New Kensington Location

After much local opposition, grocer to open new small format store on College Street.

Rendering of The College at 297 College Street

Community group Friends of Kensington Market harnessed considerable public support against the proposal to bring Loblaws to a condo development at 297 College Street, a site 400 metres north of Kensington Market. The group cited the threat the supermarket would bring to local independent retailers.

Now Loblaw Companies Limited has confirmed that a new Loblaws will be part of a 15 storey condo building by Tribute Communities. The store will be 20,000 square feet and be housed on the second floor of the development named The College. Tribute called the planned store a "community-sized grocery store."

Loblaws has been eager to open new urban stores as it seeks to tap into a growing market of downtown condo dwellers. In fact one of the touted benefits of its recent acquisition of Shoppers Drug Mart was the pharmacy chain's diverse network of stores including many urban locations. In addition to a massive new flagship at Maple Leaf Gardens, Loblaws recently opened a location at Queen and Portland Streets and announced the renovation of their St. Clair Avenue West store.

297 College Street

The College is planned for completion in 2016. Friends of Kensington Market have also been vocal opponents of a proposed Walmart store on Bathurst Street.

News: Loblaw to Cut 275 Jobs

Canada's largest grocer Loblaw Companies Limited announced today that it is shedding 275 jobs, about 200 of those from their Brampton head office. The job losses will be primarily managerial and administrative and the retailer promises little store level impact.

A year ago Loblaw announced 700 job cuts to its head office. Today's announcement furthers the company's goal of streamlining operations in the face of increased competition. Both Target and Walmart have been aggressively courting customers with expanded grocery offerings. Target plans to open up to 135 Canadian locations, all with grocery departments. Discount competitor Walmart earlier this year announced that it intends to open an additional 27 Supercentres in 2013 which include an expanded grocery section.

After the announcement, Loblaw stock ended the trading day up $1.08 at $47.09.

In July Loblaw confirmed it was acquiring Shoppers Drug Mart for $12.4 billion. That deal is expected to expand Loblaw's reach into urban markets and provide distribution opportunities for their private brand products. The merger is expected to generate significant cost savings.

Loblaw has approximately 134,000 full and part-time employees across the country and operates 22 banners in a mixture of corporately owned and franchised stores.

News: Loblaw to Purchase Shoppers Drug Mart in $12.4 Billion Deal

Retail giant to gain 1,200 locations and increase urban footprint.

In a deal announced this morning, Loblaw Companies Limited will be acquiring Shoppers Drug Mart Corporation in a cash for shares deal that will see the pharmacy chain continue operating as a separate entity.

This strategic move comes as competitors such as Target and Walmart are increasingly targeting Loblaw’s core food business, and just weeks after Sobeys has announced their acquisition of Canadian Safeway stores.

"This transformational partnership changes the retail landscape in Canada. With scale and capability, we will be able to accelerate our momentum and strengthen our position in the increasingly competitive marketplace," said Galen G. Weston, Executive Chairman of Loblaw in a press release.  "This combination creates a compelling new blueprint for the future, positioning us to capitalize on important trends in society, from the emphasis on health, wellness and nutrition, to the imperatives of value and convenience."

Loblaw, Canada’s largest grocery retailer, will distribute its private brand food products at Shoppers Drug Mart and sees the deal as strengthening its urban store network. The combined company generated revenue of over $42 billion last year, and the deal is expected to result in $300 million in cost savings in three years.

The deal is subject to regulatory approval.

In a related story, last week Loblaw announced the launch of a new health and wellness chain called Nutshell with a Toronto location to open in the fall.

[Click here for the official press release.]

News: Joe Fresh & Loblaw Comment on Bangladesh Tragedy

Canadian fast fashion brand Joe Fresh and its retail partner Loblaw commented on last week’s tragic garment factory collapse in Bangladesh which killed over 300 people. Joe Fresh was confirmed as one of the brands being produced at the factory.

Galen G. Weston, executive chairman of Loblaw, said the retailer will be working to help improve worker safety and pledged compensation for victim’s families. Weston noted that only two companies (Loblaw and UK retailer Primark, both controlled by the Weston family) out of  30 brands manufactured at the factory initially acknowledged their presence there. Loblaw also confirmed that Joe Fresh will continue to manufacture product in Bangladesh.

[Click here for article source]

[Click here for the Loblaw Companies Limited statement]

[Image via Joe Fresh]