Sample Slides

1. The Global grocery industry is being disrupted by online groceries
Online
Disruption
Europe
9%
USA
3%
Global
13%
Canada is behind the on the online
grocery trend
Quality, Freshness & Price good enough,
now lets consider convenience
Sustaining
Disruptive
Performance
Time
A shift in ‘Convenience’ metric will
make the market ripe for disruption
Canada1%
Millennials are the most avid online
grocery shoppers
Delivery to Home
Subscription
Pickup at Store
30%
19%
17%
Metrics consumers care about
Quality
Freshness
Price
Convenience
78%
74%
68%
43%
(growing)

2. The Amazon - Whole Foods value proposition could disrupt the Canadian
Grocery industry
++ =
High quality,
fresh food
World Class
leading logistics
Low prices enabled by
membership model
High quality, fresh and
convenient groceries
at low price

3. The alternatives had too much risk for not enough reward
Meal Kits Further DifferentiationDo Nothing
Want to remain as a Platform
company first, products can be
replicated
Whole Foods is more differentiated
than Loblaws and now will have
lower prices squeezing Loblaws into
the middle between Amazon &
Walmart
High risk that online grocery
market will materialize, Walmart
and Amazon heavily investing. If
Loblaws waits it will not have
option to buy or do a joint venture
Instacart
Fails the better off test

4. However, Loblaws also has some competitive advantages that they
can employ
4800 Private Label
Products
1100 Corporate Stores,
72% of them are owned
LOBLAWS’S
COMPETITIVE
ADVANTAGE
34%
Grocery Market
High Buyer Power from its
Suppliers