This is the debut article in Prospere Magazine’s public company profiles.  The purpose of this column is not to give finanicial advice or analysis, but to highlight how these companies affect our every day lives.  With Canadian Thanksgiving is this coming weekend, what better a stock profile is a supermarket? Loblaw Group of Companies (TSX: L) was founded in 1956 and currently has nearly 1,700 supermarkets across Canada, making it the largest retailer in Canada.  The company operates under a variety of banners, including Loblaws, Zehrs, Dominion (not to be confused with the chain now known as Metro), No Frills and Valu-Mart.

The Brampton-based company is perhaps most well-known for its President’s Choice (or PC) and no name (yes, all in lower case) private brands.  President’s Choice, which launched in the 1980s, quickly became a household name, and has since launched products that are not food-related.  This includes banking and a cell phone service.  Perhaps the best-selling product under PC name is The Decadent, a chocolate chip cookie.

Loblaws stores are keeping up with the trends.  Many stores, especially the larger ones carry foods from a variety of cultures, including a kosher foods section.  They are also selling organic foods (often under the PC name).  As with many other supermarkets, Loblaw brand stores often sells prepared foods.  This is great for those who are living on their own, as there isn’t any need for cooking. However, compared with its competition, Loblaws foods do not make the grade.

Their non-discount stores are competing with big box empires like Wal-Mart.  Many have recently been renovated and now sell clothes, have a full-service drug store as well as furniture.  Some also hold cooking classes.  However, many have criticized Loblaws for being too diversified.  They are spinning off too many products (banking and cell phones), many of them services rather than home-related items.  In addition, prices at the larger, main stores are higher than at the big boxes while the discount chains don’t offer as many choices.  At the same time, the higher end stores such as Whole Foods and Longo’s offer higher-quality items and better service.  This puts Loblaws at a disadvantage.

As of closing on Tuesday, October 7, Loblaw has been trading at 22.25. Its 52-week high is 24.90 and the 52-week low is 22.00