"The more things change,
the more they stay the same"
How many times have we heard
this. Too often. But in the
supermarket business, some things
have not changed and have
remained the same since the
1950s.
Except for the introduction
of several formidable
competitors, the basic store
has remained the same for
more than fifty years.
Perhaps it is time for a
radical change. It is time
to disrupt the supermarket
and take the lead in shaping
the future of the industry.
Today's shopper is not the
same shopper as the customer
from decades ago.
Sophisticated, informed,
technologically-savvy, and
demanding, it is our number
1 job to understand their
needs and to satisfy their
requirements. If not, we
risk losing market share,
becoming another victim of
paralysis,
short-sightedness, and
failure to plan for the
future.
Even
more important, we must be
the leaders in every facet.
We cannot wait for others,
we must set the agenda, and
watch as others try to play
catch-up.
Loblaws has for its entire
history been a company that
sells food using technology
to meet its objectives.
In the future, Loblaws must
do nothing less than
transform itself into a
technology company that
sells food.
It
must use information
technology, apps, analytics, big data,
understand its customers, to grow and
prosper and thrive, while
the competition struggles to
keep up.
Audrey
Hepburn circa 1959 - almost 60 years later, not much has
changed
Thomas Friedman
in the New York
Times, writes:
"Finally, we’re
going through a
change in the
“climate” of
technology and
work. We’re
moving into a
world where
computers and
algorithms can
analyze
(reveal
previously
hidden
patterns); optimize
(tell a plane
which altitude
to fly each mile
to get the best
fuel
efficiency); prophesize(tell
you when your
elevator will
break or what
your customer is
likely to buy);
customize
(tailor any
product or
service for you
alone); anddigitizeand
automatize
more and more
products and
services. Any
company that
doesn’t deploy
all six elements
will struggle,
and this is
changing every
job and
industry."
The
goal of this document is to outline a
series of initiatives that the company may
deem worthwhile and feasible for
implementation in the future. They are
grouped into five categories:
retail , marketing, human resources,
technology, and
community relations. It might also make
us think about the future, how we can
better serve and understand our customers, encourage
and promote company values, seek input
and feedback from our colleagues, and
promote, protect
and publicize worthwhile community
initiatives.
These initiatives are based on
observations and experiences during a
forty-five year career in the food business.
I have witnessed the tremendous changes
since beginning as a young teen-ager in
1974 with Steinberg in Montreal
that have taken place during this time, but
also the realization that the need for
new ideas and new strategies has never
been more important.
Again, we must
outhink, outwork, and outhustle the
competition if we are to win the battle
for customers in the future. Anything
less will result in the decline of the
company. We must act now and we must
start now to plan for success.
"If you
are failing to plan, you are planning to
fail." -Benjamin Franklin
In
the 20th century, a company
was measured by its business
IQ - business intelligence
quotient. In the 21st
century this is no longer
true. Rather, a company is
now measured by a new
business IQ - business
innovation quotient.
The
argument advanced in this
document is simple but
important. Innovation is the
cornerstone of a successful
company. Failure to innovate leads to
failure.
For
all of its history, Loblaws
has been a company selling
food by using technology. In
the future, it must
transform itself into a
technology company that
sells food.
The reasons are
easy to understand. Where WalMart was
once Loblaws fiercest competitor, in the
future, Amazon may become its
most-feared rival. With its massive
warehouses, fast shipping, wide
selection, and new technology, it wants
to take on the world. Loblaws must be
prepared and ready to meet the
challenge, because Amazon has no borders
and is ruthless in its pursuit of retail
domination.
A
revolution is upon us. We must change,
adapt, influence, and renew if we
are to succeed. We can no longer
wait. The challenge is too great and the
consequences too immense. Failure
to act will be an act of failure. No one
wishes to fail. We must innovate,
invent, implement, and lead the
way. The time for bold action is now.
IMPORTANT
NOTICE:
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with individuals outside of Loblaws Ltd
without the expressed written consent of
the owner. The author of this document
can be
contacted
to ask for permission, clarification,
information, and all other proprietary
issues regarding this document.
This document
represents more than a year of work,
research, reading, and gaining
information and understanding of the
industry and business. It is also a
reflection of ideas,
initiatives, observations, and programs
that have been obtained over a lifetime
of work. Please respect the intellectual
property rights of the author and
discuss this document only with the
author.
Property of Andre B.
Beauregard.
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without the
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