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GAIN Report #CA9142

Page 11 of 19

Wal-Mart Canada Wal-Mart’s head office is in Mississauga ( Toronto ) Ontario Wal-Mart has 145 stores nationally, with 46 in western Canada. With aggressive expansion plans, several new ones have been announced for western Canada recently. Buying and merchandising functions at executed the head office level. As mentioned earlier, Wal-Mart is reshaping the retail landscape in Canada. Traditional grocery stores are watching very closely the potential expansion of it’s grocery food entry (Super Centers) to Canada. Also, as mentioned earlier the Super Centres will no doubt be seen in eastern Canada first, however the west is not too far behind.

3. Convenience Stores / Gas Bars Convenience stores and gas bars are finding more acceptance among consumers as a result of some of the consumer trends mentioned earlier. In the past, these stores used to carry mainly confectionary foods - high margin impulse items.

However with the highly competitive food store environments these stores are changing too. C- stores (e.g., 7 Eleven ) used to be targeted at males 18-24 however aggressive repositioning has broadened the target and ‘softened’ the image, to include females and seniors.

The changes have also been experienced at gas stations, as gas margins are low and fluctuate, gas food bars provide more stable revenue. C- store and gas bar trends include a lengthened list of food products, natural food sections, and ready to eat foods.

The following 2 C-store are typical of the subsegment.

Mac’s Stores - corporate chain 438 Mac stores nationally owned by Silcorp Ltd with a HO in Scarborogh Ontario Western Canada procurement and merchandising is handled out of the western division office in Calgary.

Shell Gas Stations - Select Food Stores 450 stores in Canada continuing to aggressively re-brand ‘Circle K’ stores to the Select name Western Canada procurement and merchandising at the Shell head office in Calgary

Distribution in this sub segment usually organized through a third party intermediary such as Wallace & Carey or Coremark.

Section 3. - Competition

Canada has a well developed food production industry, however food imports into Canada have always played a large part in the total retail food supply. Of the imports into Canada Food imports from the US have always enjoyed a relatively strong competitive position due to several factors. Proximity (90% of the Canadian population is within 100 miles of the U.S. border).


Foreign Agricultural Service/USDA

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