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Bloomberg reports that Loblaw Cos. in Canada is making pre-emptive moves to make sure that Wal-Mart’s expansion there – it has opened six Sam’s Club units in Ontario in the past year – does not affect its traditional market leadership.

Among the strategies being employed:

  • Opening 13 Real Canadian Superstore discount outlets in Ontario this year and seven in 2005.


  • Adding profitable nonfood items ranging from furniture to home electronics in traditional supermarkets.


  • Taking advantage of strong private-label sales so that prices on national brands while maintaining profit margins.


According to company president John Lederer, Loblaw is not going to make the mistake of underestimating Wal-Mart that so many US companies made during the company’s early expansion mode.
KC's View:
Gotta play offense. Defense isn’t nearly enough when trying to survive on Planet Wal-Mart…