Description: About a month ago, this blog addressed Loblaws plans to cut costs by laying off 500 administrative staff. This week Loblaws took another step down the cost-cutting road by announcing that it would close 22 money losing stores. But, it’s not a total retreat. The company also announced it was starting up a delivery service for online orders. It seems that the grocery business is bracing for change with Amazon’s acquisition of Whole Foods.
Date: November 15, 2017
1) In Appendix B, Wiley’s Financial Accounting: Tools for Business Decision Making contains specimen financial statements for Loblaw’s competitor Sobeys. Take a look at those financial statements. What jumps out at you in your initial review?
2) How would a CEO decide which stores to close? How could accounting information help with this decision?
3) What do you think may be some of the rewards and challenges in moving into the e-commerce field in a grocery chain?