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Description: For the last year or so, grocery stores have done quite well. Shuttered restaurants boosted sales at grocers as consumers were unable to eat out as they had been doing pre-Covid. Loblaws has reported its sales are up 10% over the previous year, but expectations are that 2021 will not see the same levels of sales. Online sales are way up, but Loblaws points out that there are additional cost factors associated with online sales.

Date:  February 25, 2021

Source:  ottawacitizen.com

 Link: https://ottawacitizen.com/news/retail-marketing/e-commerce-costs-takes-a-bite-out-of-loblaws-revenue-gains-last-year/wcm/dfc59e2d-9571-4f40-bec8-46f66121ff37

Discussion points:

1) How have your dining habits changed over the past year? Are you spending more at grocery stores and less at restaurants?

2) Imagine yourself in a senior accounting role at a grocer such as Loblaws. What are some strategies you might propose to help prepare the company to deal with the expected decline in sales in 2021?

3) Chapter 5 of Wiley’s Financial Accounting: Tools for Business Decision-Making, begins with a short vignette about Loblaws. What is the chief difference between the “stock and ship” model and the “flow model” of supply-chain management?

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