Introduction
The focus of this paper is the supermarket sector in Canada. In this sector the development of a company strategy is of utmost importance as the goods are typically commodity goods. The goods sold in supermarkets usually are of little or no comparative advantage. We found that some interesting developments have occurred in this sector, as we will see in this paper. We will identify the leading companies, and determine how the inter-company strategies differ from one another. Before we do so, however, we will first have a look at the retail industry in Canada as a whole, and the supermarket sector.
Overview of Retail Industry in Canada
The retail sector is responsible for providing the last process of the manufacturing/processing lifecycle. Firms participating in this sector distribute to consumers the finished goods produced by manufacturers. Industry Canada defines the sector as follows: "the retailing of merchandise in small quantities to the general public generally without transformation, and rendering services incidental to the sale of merchandise" .
In 2005, the industry as whole represented $367 billion in sales contributing to 5.7% of the total value of production in the Canadian economy.
Over the past decade, the retail sector has grown at a faster rate than most other sectors in the economy. Between 2004 and 2005 the growth rate was 5.1% above average. Industry experts predict that the growth will continue at least until 2010 due to high levels of consumer confidence and low unemployment rates. There is a direct correlation between the state of the economy and the state of the retail sector. As the econo ...