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Author: bytepusher Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 63808  
Subject: Re: Empire (Emp.a) Date: 10/30/2003 5:12 PM
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Do you think that Sobeys can withstand Sam's Club entry into their largest market (Ontario)

Sam's Club doesn't impact anyone seriously except Costco. Some existing Costco shoppers will move over but they won't attract many new shoppers from the traditional grocery chains, those that will shop the big box format are already gone to Costco.

Loblaws price chopping at new larger store formats?

I don't see Loblaws price chopping in particular, the focus seems to be on building more and more superstores for the Loblaws/Zehrs/Fortinos brands, which Sobey's is doing too but they seem to be doing it smarter (Loblaws seems to be picking some locations simply to keep someone else from grabbing them). The only activity I've seen of late in the discount space has been Sobey's opening more "Price Chopper" stores.

The bigger potential disruption coming soon I think is the launch of the German lido stores in Canada. Low margin discount format, smaller stores, a smaller but well targeted item assortment. The stores will be on smaller lots so they will be generally closer to residential areas and located on at high traffic, regular commuting route intersections (they've been buying up this kind of location around Toronto for a while, if you see a Shopper's drug mart relocating chances are there will be a Lido in there in a few months). They could really suck the traffic away from the big box boys.
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