Farm Boy is a food retailer specializing in fresh produce with a particular focus on farm products. The company operates in the province of Ontario, Canada, headquartered is located in Ottawa. The chain stores offer “organic, natural and locally sourced foods, a wide range of ready-to-eat food prepared in-store and a strong private-label program” (Redman, 2020). Ottawa. In 2018, the retailer was acquired by Canadian conglomerate Empire Company Limited (“Empire completes $800-million,” 2018). Before joining the conglomerate, Farm Boy had 26 stores in Ontario County, which increased to 31 after the purchase (Redman, 2020). Empire Company is planning a further large-scale expansion of its chain of stores.
The retailer’s target audience is adult people and families living in Ontario. Jeff York, co-CEO of Farm Boy, notices that the main focus even in the digital age should be on attracting the baby boomer’s generation (as cited in Laird, 2018). While the company is currently trying to expand its audience by increasing its social media presence, it does not place much emphasis on millennials. The main integrated communication strategies of the company include radio and flyers, which have a high level of success when working with a target audience. Since 2018, Farm Boy has been striving to promote its products and services on social media. However, Jeff York notes that this strategy has not been prioritized (as cited in Laird, 2018). The company also regularly publishes news on its website, which allows it to communicate with customers.
Since Farm Boy is currently part of the Empire Company, its market share can only be estimated within the conglomerate. Market capitalization is $ 9.83 billion, which includes the value of all its constituent entities and chains (“Empire Company Limited (EMP-A.TO),” n. d.). It is noted that the acquisition of Farm Boy should help the conglomerate regain its market shares after the decline since 2013 (“Update: Farm Boy among Empire’s,” 2019). As the chain continues to open new stores in 2021, it can be concluded that it brings great benefits to Empire Company.
Farm Boy strengths include a strong network of local suppliers, high customer satisfaction, increased profits, new store openings, community development. The company’s weaknesses are focus on local audiences, inability to target younger customers, and inability to expand beyond Ontario. Opportunities include development with Empire Company resources, community development to allow for new vendors, online store, and delivery. Among the threats are the seasonality of local production, competitors can lure away suppliers, insufficient implementation of new technologies in comparison with competitors, and a limited market.
The grocery retail industry in Canada has experienced moderate growth in recent years. The average percentage of industry growth in 2015-2020 is 2.6% (“Supermarkets & Grocery Stores,” 2020). It includes “supermarkets and grocery stores, convenience stores, mass merchandisers and specialty stores” (“Food retail in Canada,” 2020). Loblaw Companies Ltd are the best selling companies in the sector, followed by Sobeys Inc and Metro Inc (“Food retail in Canada,” 2020). Farm Boy’s major competitors are Stew Leonard’s, Sprouts Farmers Market, Shaws, and Harris Farm Markets. The main threat for the company is lower revenue relative to competing chains. However, from Q3 2019 to Q4 2020, Farm Boy increased this figure from 50 million to over 600 million (“Farm Boy,” n. d.). Thus, the rate of its growth is ahead of its competitors. The target audience of the company is Ontario residents interested in natural products from local producers. Farm Boy provides a variety of food products, including meat and ready meals, to suit the needs of the customers.
References
Empire Company Limited (EMP-A.TO). (n. d.). Web.
Empire completes $800-million Farm Boy purchase. (2018). Web.
Farm Boy. (n. d.). Web.
Food retail in Canada – statistics & facts. (2020). Web.
Laird, R. (2018). Farm Boy looks beyond radio to target Torontonians. Web.
Redman, R. (2020). More Farm Boy stores coming from Sobeys. Web.
Supermarkets & Grocery stores in Canada – market research report. (2020). Web.
Update: Farm Boy among Empire’s ‘best performing stores’ months after acquisition. (2019). Web.