Loblaws Launching Product Marketplace

The demand for retailers to move into the online space grows daily with the popularity of Amazon moving forward. Loblaws Companies Limited, one of the largest food retail giants in Canada, announced that they had launched their curated marketplace. This comes after grocery sales on Amazon increased tenfold through 2018 – 19. This new marketplace will include products from new partners and vendors, giving consumers access to multiple unexpected brands.

Loblaws iterated in their announcement that this online marketplace works similarly to their PC Express Platform, acting as more of an expansion to their prior services. The PC Express Service enables consumers to purchase their groceries online for home delivery or store pickup. The expansion is rolling out nationwide to the three Loblaw brands maintained in Canada. Those include Loblaw’s Real Canadian Super Store, the Atlantic Super Store and all Loblaw Chains. All purchased will earn PC Optimum Points through the updated versions of the PC Express Marketplace.

An industry advisor for retail chains in Canada, Robert Carter of the Stratton Hunter Group, noted that this expansion is a tactical decision for Loblaws. The company will advocate for consumers to spend larger quantities of money through their online store, which is why they’ve included new products into the online store. Those include a higher influx of baby products and accessories, such as cribs or apparel. Acquiring the consumers that use Amazon will be a challenging task, which is why Loblaws is looking into long-term solutions by compiling data on shopping behaviours. This will assist the food retail chain by finding better-suited products for their consumers.

The Challenge

Loblaws Companies Limited faces a significant challenge going up against Amazon, who operates one of North Americas most infamous grocery chains. Going up against the Whole Food Brand in Canada will require Loblaws to implement new product acquisition manoeuvres or create specialized services that can appeal to Canadian Buyers. This online market is the best course of action for the company, which needs to earn an influx of profit from updating physical locations nationwide.

The new products offered through the online marketplace include Strollers, Linens, Home Décor, Kitchen Supplies and Pet Accessories. Lennox Furniture Incorporated and Umbra create all the new products provided. Ultimately, the Loblaws Corporations hopes that their new online marketplace will strengthen their brand across Canada and better assist the convenience of consumers. It will be some time until the profits earned from the market are made public information.