Loblaw Companies Ltd.: EDI and Strategic Growth

<p align="justify">In 2019, Loblaw Companies Limited, a Canadian grocery chain headquartered in Brampton, Ontario, was mired in controversy over the “ethnic food aisle,” which was a common feature in all its stores. The company was questioned about the aisle’s role in creating a sense of otherness and divisiveness among the culturally diverse individuals it served. These issues related to discussions sparked by the Black Lives Matter movement alongside the emergence of COVID-19 pandemic in 2020, during which broad social inequality and COVID-19’s disproportionate impact on frontline employees became spotlighted in new ways.<br><br>Loblaw Companies Limited had to decide if it should remove its “ethnic food aisle.” It also had to consider the purpose of its acquired stores that were entirely dedicated to ethnic offerings, such as T&T Supermarket, which specifically offered products and a shopping experience tailored to Asian tastes. The company had several questions to resolve. Did its current corporate strategy reflect evolving expectations of equity, diversity, and inclusion? What actions should the company take with regard to its popular “ethnic food aisle?” Should it continue to expand by acquiring additional ethnic grocery store chains? Was Loblaw Companies Limited doing enough to support equity, diversity, and inclusion in the organization?</p>

<p align="justify">This case is appropriate for courses at the undergraduate and graduate levels that focus on business ethics, marketing, non-market strategy and public policy, and sustainability. Given the strategic, social, and business complexity of the case, it may be most effectively used at the end of a course once students have been introduced to key principles. This case is designed to facilitate student learning of the embedded nature of equity, diversity, and inclusion, and its presence in all aspects of a firm’s strategic approach: products, placement, partnerships, channels, and customers. In examining the company’s strategic decisions, the case helps students understand the complexities related to differentiation strategies, employee relations, and the scope of business responsibilities.</p><br><br\>The case asks students to determine what strategy a company should adopt to navigate profitability, reach target markets, and address social pressures for equity. This case also deals with sustainability concerns related to customers and employees, with a focus on the people aspect of the triple bottom line framework. This case also has various human rights dimensions. Many companies must make decisions that are ethical in nature. Students or business executives must understand these dimensions and apply their own knowledge to arrive at a successful decision. After working through the case and assignment questions, students will be able to<br><ul><li>list and evaluate the complexities of a differentiation strategy centred on ethnicity;</li><li>debate the benefits of diversity within an organization;</li><li>discuss the relationship between race and frontline workers;</li><li>evaluate the role of businesses in perpetuating or changing social hierarchies; and</li><li>develop positions on if and how businesses can reduce inequality and increase inclusivity across society.</li></ul>

• equity, diversity, inclusion, ethnicity
• EDI
• business ethics
• marketing
• non-market strategy
• public policy
• sustainability