Walmart Canada says food is a "core" area

CIBC analysts and Metro CEO consider Walmart's growing push into food
8/24/2015

Walmart Canada has enhanced its grocery offering over the past few years and it's seeing the payoff.

Groceries were a big factor in the retailer's recent sales gain and traffic boost between May and July, as was reported last week. Sales rose by 3.9% at existing locations.

A Global News piece provided comments from Walmart Stores president and CEO, Doug McMillon, who stated that food is now a "core" department for Walmart Canada.

Industry watchers have recently weighed in on Walmart's food strategy, with a CIBC research report from earlier this month stating "The company is quickly transforming into a real grocer."

Its analysts gave Walmart kudos for its weekly flyer for the August long weekend, stating it was far and away the best ad in the marketplace.

Metro president and CEO Eric La Flèche also commented in the Global News story about Walmart's move to expand its supermarket sales in Quebec. La Flèche predicts Walmart will have an impact in the market, but that Metro will defend well with its own strong presence there.

Despite Walmart's growing push into food, CIBC estimates Canada's Big 3 grocery companies--Loblaw, Empire and Metro--attribute for more than 70 per cent of total grocery sales in Canada.

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