X hits on this document





10 / 20

GAIN Report #CA9142

Page 9 of 19

of store count) do approximately 25% of the ACV. Co-op’s strength is clearly it’s number of locations and appeal of the ‘co-op’ concepts to the strongly loyal Co-op shoppers.

  • 5.

    IGA banners - Supplied by two companies operating in separate regions

    • *

      IGA - In the Prairie provinces - Sobey’s West Sobeys is national organization with its corporate head office in Stellarton (Halifax) Nova Scotia. In western Canada they control the IGA banner in Alberta, Saskatchewan, and Manitoba. The Sobey’s west head office is in Edmonton, Alberta. Across the prairie provinces there are 165 IGA / IGA Garden Markets outlets. The IGA locations are the traditional store format, independently owned, with smaller square footage (15-20,000) and a focus on the neighbourhood shopper. The IGA Garden Markets are the newest stores and are significantly larger (25-40,000 square feet). They also have significantly more focus on the newer retail trends especially the ‘Fresh Departments’.

    • *

      IGA - In British Columbia - HY Louie HY Louie a Vancouver based company control the IGA banners in BC In BC there are 50 IGA/IGA Plus stores. IGA stores in BC are of similar size as those in the prairies provinces. While IGA Plus store are typically in the 25-30,000 square foot range. IGA Plus are the newest locations and include new features such as coffee bars, ice cream parlors, permanent demonstration booths and a customized neighbourhood feel to it’s decor.

  • B.

    Warehouse Clubs

  • a)

    Entry Strategy

This channel (Costco) has many entry requirements and strategies in common with the supermarket channel. However, the requirements for listing would definitely also include uniqueness of product and packaging. The product must have a significant competitive advantage and the packaging fit into the club member’s requirements. No listing fees are paid, and pricing is on a ‘net net’ basis (after promotion allowance) excluding merchandising and advertising costs. While this is the case, extra launch funds should be budgeted for an in store demo program, member mailing program (e.g., Costco Connections, Coupon Book) and/or end isle display program.

For national launches, simultaneous presentations should be made in Costco Burnaby BC (for western stores) and Costco in Laval Quebec (for eastern based stores).

b) Market Structure Product is shipped on pallets (special specifications and formatting will depend on the product/category). The shipment is either to a central distribution center, which would be cross- docked, or directly to each warehouse outlet.

c) Company Profile Costco Wholesale is the only channel member since Costco purchased Price Club some years ago.


Foreign Agricultural Service/USDA

Document info
Document views93
Page views93
Page last viewedSun Oct 23 12:45:37 UTC 2016