Loblaw Companies (TSE:L:CA) a large Canadian grocer is fighting off the invasion of Canada by American Retailers. Costco, Target, Wal-Mart, Sears, Home Depot, Marshalls and maybe Nordstrom. They are all coming.
But ponder this Joe Fresh division. It offers chic trendy clothing at cheap prices. How can you miss. The locations are stapled to many Loblaw grocery locations. Good locations for food. Unproven for fashion retail.
Go to New York New York. One existing Joe Fresh location on 5th Ave. Not sure how they can cover the rent on 5th Ave with $20 rain jackets. But they are upping the ante and opening up a new location on the upper east side on Madison.
Both locations are tony high rent and do not have $20 per item business models.
So what is Loblaw’s up to?
George Gutowski writes from a Caveat Emptor Perspective.