Loblaw’s Frank Gambioli talks delivering value
Canada’s inflation rate is decelerating, but cash-strapped consumers are still on the hunt for value.
Frank Gambioli, president of Loblaw Companies Ltd.’s Market/Superstore division, said the grocery giant is laser-focused on delivering that value to its customers.
“It’s our job to provide accessible food to Canadians. If you think of our conventional business, value can come in many different forms for us—how do we provide freshness, quality, service? Value for us too is, you take home your produce and it doesn’t go bad that same day. Providing that consistent experience is something we work on very hard,” Gambioli told GroceryConnex attendees Monday (Nov. 25).
Before the pandemic, Gambioli said shoppers visited four to five grocery stores on average. During the pandemic, that number dropped to one to two stores. Now, Canadians are back to visiting three to five stores on average, according to the company’s data.
“Promotional penetration continues to grow. People are cherry picking,” he said.
Loblaw amalgamated its Superstore business across the country earlier this year. On Loblaw’s fourth quarter earnings call of fiscal 2023, CEO Per Bank said: “Now we have a Superstore banner coast-to-coast… meaning that we can utilize the strength of negotiating with suppliers and giving great promotions and great offers to customers.”
Gambioli said Monday the decision delivers a consistent Superstore experience across the country.
Loblaw has doubled down on its discount offering over the past year with initiatives like the elimination of multi-buy pricing at No Frills and pilot ultra-discount No Name stores.
Looking ahead, Gambioli expects the shift to discount to continue.
“I don’t think the economy is going to get much better anytime soon, affordability is definitely going to be an issue… In our conventional business, it’s going to be a tough slog to make sure we’re providing value,” Gambioli said.
He also pointed to “fierce” competition in Canada’s grocery industry. Recently, Ontario and Quebec grocer Metro Inc. announced plans to open a dozen new discount stores next year. Sobeys parent company Empire Co. Ltd. recently expressed confidence in its discount banner, FreshCo, and hinted at future innovations.
Meanwhile, American retailers Costco and Walmart continue to expand their footprints in Canada.
“If you think about competition in Canada, of all the G7 nations, we have the most foreign ownership in Canada. So for those who think we’re not competitive in Canada, it’s not true,” Gambioli said.
Canadian Grocer’s GroceryConnex conference took place at the Fairmont Royal York in Toronto on Nov. 25.
