Although Loblaw Strives to Elevate Its Brand Through Prudent Investments, a Moat Remains Elusive

As the largest retailer in Canada, Loblaw boasts well-recognized grocery and pharmacy banners and a sizable loyalty program that drives strong consumer engagement. However, we think the firm has failed to amass an economic moat based on either intangible assets or cost advantage, given its sales concentration in commoditized food retail, where low prices reign as the major point of differentiation.