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Traditional grocery stores also lose some of their market share to drug stores, convenience stores and other retailers who have entered the industry. Threat of substitutes from fast-food and take- away outlets is not as prevalent, since many grocery stores have started stocking ready-to-eat meals and have deli services available for consumers. Competitive pressures are increasing in the industry with the potential entry of Wal-Mart and new delivery methods such as the internet.
Key Success Factors of the grocery industry include the following:
? Low cost operations; leading to lower prices
? Convenient locations and large stores
? Wide product ranges; good quality
? Value added services; customer loyalty programs
? Cutting-Edge technology, both front-end and back-end
Looking at the above factors, there are many opportunities for Canadian grocers to improve on their services such as vertical integration as supplier/distributor, innovative technologies like RFID, and global expansion (See SWOT Analysis ? Appendix B)...
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