Question The grocery business saw broad changes over

Question The grocery business saw broad changes over the course of the… The grocery business saw broad changes over the course of the Covid-19 pandemic. As restaurants closed their doors to all but take-out orders, grocery store revenues increased by approximately 10% overall. However, those increased revenues were off-set in the early months of the pandemic by increased expenses in extra pay for essential workers as well as increased investments in e-shopping (online shopping and delivery). It is estimated that up to 40% of the foot traffic formerly seen in the physical stores has shifted to online shopping and delivery. Furthermore, the items that grocery shoppers are buying has shifted. More shoppers are looking for fresh foods (perishables) rather than canned, boxed, and frozen foods.  The larger grocers moved quickly to develop an online presence where shoppers can browse the contents of the various sections of the store to fill an online grocery cart. After check-out, shoppers either drive to curbside pick-up their order or wait for home delivery.  All this upheaval in the grocery business has caused a great deal of uncertainty. Grocers like Loblaws have attempted to compete with the largest retailers such as Walmart by creating superstores that carry not just groceries, but beer, pharmaceuticals, kitchen and home supplies, and even clothing. With its investment in infrastructure, Loblaws’ transition to online not surprisingly involved keeping its stores open as much as possible and using employees as shoppers to fulfil online orders.  Sobeys on the other hand used the societal change to at-home shopping and delivery to invest significantly in its automated inventory and home delivery systems. This has caused a shift in capital costs away from in-store employees such as inventory workers and cashiers to warehouse robots, computer systems to manage ordering and inventory, and delivery drivers. Longos is a smaller, but growing grocery chain with 35 locations in the GTA. Started by the Longo family in 1956, who still run the chain, Longos grocery stores differentiate themselves from the larger chains by holding onto their roots as a fresh fruits and vegetables market. They have expanded on this core offering to include a full range of groceries as well as hot foods prepared as though they were home cooked. Shoppers can pick up the groceries for the next few days on their way home from work and pick up a pizza right out of the oven or a baked chicken and some roasted vegetables for dinner. Many Longos stores also contain a Starbucks Cafe for shoppers to grab a coffee while shopping. Longos likes to have a family atmosphere at their stores by hiring people who live near the stores, and Longos prides itself in having low employee turnover in customer-facing positions like cashiers, stockpersons, and store managers.  When customers go to their local Longos they might run into their neighbor’s son or daughter working at the store, and are also likely to see familiar faces working the cash register, etc. Longos purchased one of the original home delivery grocery services called Grocery Gateway in 2004. While Grocery Gateway is the largest home delivery service in Canada, the recent moves from Loblaws, Instacart, and especially from Sobeys have taken significant share of the rapidly expanding market for grocery delivery and pick-up. Grocery Gateway operates under a subscription-based model for its customers and carries higher operating costs than the more recent and heavily automated services. If Grocery Gateway is to maintain a strong portion of this market, Longos will need to invest heavily in upgrading and transforming its home delivery model. Q: Devleop a PESTLE AnalysisBusiness Management Human Resource Management HRM 3430

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