Market News

Loblaw Purchases Asian Grocery Chain

Loblaw Cos. Ltd. announced that it is buying T&T Supermarket, Canada's biggest Asian food retailer, for $225 million. The company is aiming to extend its offerings to what it says is the country's largest growing customer segment. "This is an opportunity for a struggling Loblaw to try and reach out into other ethnic communities. They have traditionally targeted specific ethnic markets in the past with the Fortinos brand, for example," said Richard Talbot, president and CEO, Talbot Consultants International Inc. T&T Supermarket Inc., which runs 17 stores in B.C., Alberta and Ontario, will operate as a separate division."If they are going to stick with the ethnic Chinese market, it can be a tough market to deal with. It is very price conscious and quality of food oriented, which can mean skinny margins. I don't see it as a great pot of gold at the end of the rainbow," said Talbot. However, John Scott, president and CEO, Canadian Federation of Independent Grocers, said that T&T is one of many examples of how independent entrepreneurship works well in the Canadian market. "Their acquisition by Loblaw is a sound strategic move by a major player," he said. http://www.theglobeandmail.com/report-on-business/loblaw-buys-asian-grocery-chain/article1229762/Source: Canadian Grocer E-Newsletter, July 28, 2009