Case Study: Human Capital Strategy at Loblaw

In the Chapter $1$ case, we learned that Loblaw Companies Ltd$.($Loblaw$)\text{'}$s vision is to help ensure that Canada is the happiest and healthiest country in the world. We also learned that the core values at Loblaw are to $"$be authentic, build trust, and make connections" $($Loblaw Companies Ltd$.2021,6)$ and that its value proposition is to $"$be best in food, health, and beauty" $($Loblaw Companies Ltd$.2021,2).$ This value proposition, which is intended to communicate what Loblaw's unique features are that draw customers to shop at its supermarkets rather than any other, is implemented by activities centred around providing fresh food selection; competitive value; a curated assortment of offerings; and providing high$-$quality health and wellness products and services. It is also clear from Loblaw's annual report that a central component of the mission at Loblaw is to focus on everyday digital retail. This means that it is committed to expanding customers' ability to shop from an Internet$-$connected device.

The grocery business has seen broad changes over the course of the COVID$-19$ pandemic. As restaurants closed their doors to all but take$-$out orders, grocery store revenues increased by approximately $10$ percent overall. However, those increased revenues were offset in the early months of the pandemic by increased expenses in extra pay for essential workers as well as increased investments in e$-$shopping $($online shopping and delivery$).$ It is estimated that up to $40$ percent of the foot traffic formerly seen in the physical stores has shifted to online shopping and delivery. According to the Toronto Star, just $1$ percent of grocery shoppers were buying their groceries online prior to the pandemic, but that number has increased $300$ percent since the start of the pandemic. It will be interesting to see the extent to which customers return to in$-$store grocery shopping. Furthermore, the items that grocery shoppers are buying has shifted. More shoppers are looking for fresh foods $($perishables$)$ rather than canned, boxed, and frozen foods $($Hudson $2020).$

The larger grocers moved quickly to develop an online presence where shoppers can browse the contents of the various sections of the store to fill an online grocery cart. After check$-$out, shoppers either drive to curbside pickup for collecting their order or wait for home delivery.

All this upheaval in the grocery business has caused a great deal of uncertainty. Grocers like Loblaw have attempted to compete with the largest retailers, such as Walmart, by creating superstores that carry not just groceries, but beer, pharmaceuticals, kitchen and home supplies, and even clothing. With its investment in infrastructure, Loblaw's transition to online not surprisingly involved keeping its stores open as much as possible, and using employees as shoppers to fulfil online orders.

Sobeys, on the other hand, used the societal change to at$-$home shopping and delivery to invest significantly in its automated inventory and home delivery systems. This has caused a shift in capital costs away from in$-$store employees, such as inventory workers and cashiers, to warehouse robots, computer systems to manage ordering and inventory, and delivery drivers.

In partnership with digital retail is the pickup and delivery component for groceries, and Loblaws supermarkets are working on expanding their efforts to make both options simple for their customers. The parent company Loblaw points to the fact that $90$ percent of Canadians live within $10$ kilometres of one of its stores, which means that the company is extremely well$-$positioned to make use of customer pickup and delivery options for fast and easy service $($Loblaw Companies Ltd$.2021).$

Case Study Question $2\mathrm{.}4$

What are some HR practices and$/$or policies that could be developed to obtain and reinforce those human capital competencies?