Latest news with #LoblawCos.Ltd
Hamilton Spectator
4 days ago
- Business
- Hamilton Spectator
Loblaw's Q2 profit rises as shoppers continue to flock to discount
A slew of new discount stores helped push profit at Loblaw Cos. Ltd. higher in the second quarter, as shoppers continue to seek lower-priced products, a trend the company's CEO says will remain for the long term. 'Our hard discount stores: They're doing well and they're still leading and doing better compared to the rest of the portfolio,' Loblaw chief executive Per Bank told analysts on a conference call Thursday. He said Canadians are increasingly seeking promotions and private-label products, driving up sales at the grocer's discount stores. 'The global shift toward discount retail is a long-term trend and we are leading it here in Canada,' Bank said. Earlier this year, Loblaw announced its plan to spend $2.2 billion, opening 80 new grocery and pharmacy stores, with about 50 of them being smaller-format discount stores. So far, the company has opened 20 new stores and 23 new pharmacy clinics. The parent company of Loblaws and Shoppers Drug Mart said its net earnings available to common shareholders amounted to $714 million or $2.37 per diluted share for the quarter ended June 14. The result was up from a profit of $457 million or $1.48 per diluted share in the second quarter of 2024. Despite the upbeat quarterly results, Loblaw did not upgrade its guidance, with chief financial officer Richard Dufresne saying it was too early to do so. 'There's still a lot of uncertainty out there, so we thought it'd be more prudent to wait,' he told analysts. The company could update its financial guidance in its third-quarter results, Dufresne said. Bank said the company is continuing to strengthen its local supply chain, onboarding another 130 Canadian vendors onto its network. The ongoing tariff dispute with the United States and the trend of shoppers favouring Canadian made products has led many grocers to increase their local offerings. Earlier this year, Loblaw began highlighting domestic products in its stores while also marking products that have seen price hikes due to tariffs with a 'T' symbol. It also added a 'swap and shop' feature to its loyalty app to help shoppers find Canadian products more easily. 'As intended, it has helped our customers by clearly identifying tariff items, supporting Canada, and saving money,' Bank said. Sales volume on items labelled with a 'T' were down more than 15 per cent, he said. 'There's some misconception that the tariffs are no longer a factor in grocery,' he said. 'Nothing could actually be further from the truth.' Bank said about a third of all supplier cost increase requests are tariff related. On an adjusted basis, Loblaw said it earned $2.40 per diluted share in its latest quarter, up from an adjusted profit of $2.15 per diluted share a year earlier. Analysts on average had expected an adjusted profit of $2.33 per diluted share, according to LSEG Data & Analytics. Revenue for the quarter totalled $14.7 billion, up from $13.9 billion, as food retail same-store sales rose by 3.5 per cent. The company said sales growth was driven by new store openings and improved same-store sales, with 'impactful promotions driving higher customer engagement.' Drug retail same-store sales rose 4.1 per cent, with pharmacy and health care services same-store sales up 6.2 per cent, and front store same-store sales increasing 1.7 per cent. RBC analyst Irene Nattel called it 'another solid quarter' for the company, noting food revenues were 'a string bean ahead of forecast.' Separately, Loblaw announced a four-for-one stock split, citing continued affordability and accessibility of its shares for investors. Over the past year, Loblaw shares have risen more than 30 per cent to trade just above $220. This report by The Canadian Press was first published July 24, 2025. Companies in this story: (TSX: L)
Global News
14-05-2025
- Business
- Global News
Loblaw says number of tariff-affected products will triple in coming weeks
The number of tariff-hit products at the grocery store could soon spike as pre-tariff inventory runs out, said Loblaw Cos. Ltd. chief executive Per Bank, which means prices for some items will go up too. Loblaw has been aggressive in marking which products are affected by tariffs, a tally that so far it has limited to a little over 1,000 items. But that total will rise to more than 3,000 within the next week or two, and could peak at over 6,000 within the next two months, said Bank in a LinkedIn post on Wednesday. 'While the tariff situation might be improving between the U.S. and other countries, that's not yet the case here in Canada. In fact, we'll be facing a large wave of tariff-related increases in the weeks ahead,' he said. Tariff-affected items will still account for a small share of the roughly 80,000 items the company stocks, but customers will notice changes in categories including natural foods, pantry staples and health and beauty products, he said. Story continues below advertisement 'It's been good to see Prime Minister Carney and other leaders engaging in dialogue with U.S. officials, as we're all hoping for a rapid de-escalation of this situation.' Bank also said he was pleased to see the federal government has changed its counter-tariff policies to limit the charges to finished food products coming in from the U.S. 2:25 Consumer Matters: Loblaw adds 'T' symbol to products affected by tariffs In mid-April, the government announced several adjustments to the $60 billion in counter-tariffs it announced in March to ease the burden on Canadian companies and consumers. Get daily National news Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day. Sign up for daily National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy A key measure for grocers was a six-month suspension of counter-tariffs on a broad range of U.S. goods used in Canadian manufacturing, processing and food and beverage packaging. That means, for example, a Canadian company could import something like milk if it's used to make another product without the additional counter-tariffs, but milk for retail sale wouldn't be exempt. Story continues below advertisement The changes mean Canada has essentially paused nearly all of its counter-tariffs, said Tony Stillo of Oxford Economics in a note. He said the changes will reduce price pressures and brings the effective tariff rate increase on the U.S. to nearly zero. From the start, the counter-tariffs excluded U.S. produce like lettuce, which the Canadian market is especially reliant on. Canada's counter-tariffs have generally targeted items that have alternatives produced in Canada, so areas like dairy, poultry and grains, said Mike von Massow, a University of Guelph professor and food economist. 'They put them on things that were highly substitutable, so that if you were willing to make small changes, you weren't going to get impacted as much,' he said. 'Now, if you are interested in a specifically aged cheddar from Wisconsin, then that's going to go up in price.' While many items aren't directly tariffed by Canada, there are indirect price pressures from other areas like U.S. metal tariffs, and the general uncertainty brought on by the trade war, he said. 'The uncertainties with the U.S., it has the potential to increase prices even in the absence of tariffs.' 2:26 Canadian bananas? Grow-local movement thrives amid tariff threats Loblaw's head-on approach to tackling tariff increases could help reduce consumer frustration in the grocery aisles where Canadians can most visibly see the impact of tariffs, said Jenna Jacobson, associate professor and Eaton Chair in Retailing at Toronto Metropolitan University. Story continues below advertisement 'It's diverting the negative blame from the retailer to these external policy or political issues,' said Jacobson. She said Loblaw is notable for coming out so specifically on tariff impacts, but that all grocers have been highlighting Canadian-made products. But while the transparency could work well for the company, there are trust concerns given how quickly the tariff situation is changing. 'It's basically an effort to simplify something that is very complex,' said Jacobson. 'That simplification has to be done accurately, otherwise, it serves to distort consumer perceptions.' Empire Co. Ltd. said it is actively engaged with suppliers to minimize impacts to customers, and that its network had already started to diversify global sourcing years ago. Metro Inc. declined to comment. While Canada has added numerous exemptions to its counter-tariff measures, they remain on high-profile grocery items like orange juice and alcohol as well as a host of other products ranging from uncooked pasta to guinea fowl in a glass jar.
Winnipeg Free Press
14-05-2025
- Business
- Winnipeg Free Press
Loblaw warns of surge in tariff-hit food products as pre-tariff inventory runs out
TORONTO – The head of Loblaw Cos. Ltd. says the company expects a surge of tariff-related price increases at its stores as its pre-tariff inventory runs out. Chief executive Per Bank says that so far, the company has limited the number of tariff-hit products to a little over 1,000 but that within the next week or two it will rise to over 3,000, and could peak at over 6,000 within then next two months. He says in a LinkedIn post that it will still be a small share of the roughly 80,000 items the company stocks, but customers will notice changes to categories including natural foods, pantry staples and health & beauty products. The company has been adding a 'T' symbol to products affected by tariffs, and Bank says both the company and customers keep seeking out products from Canada and outside the U.S. He says he's also pleased that the Canadian government changed its counter-tariff policy to only apply to finished products. Canada has imposed reciprocal tariffs on about $60 billion worth of goods imported from the U.S., along with additional auto-specific counter-tariffs, in response to what the government says is unjustified U.S. tariffs. Winnipeg Jets Game Days On Winnipeg Jets game days, hockey writers Mike McIntyre and Ken Wiebe send news, notes and quotes from the morning skate, as well as injury updates and lineup decisions. Arrives a few hours prior to puck drop. This report by The Canadian Press was first published May 14, 2025. Companies in this story: (TSX:L)
Yahoo
14-05-2025
- Business
- Yahoo
Loblaw warns of surge in tariff-hit food products as pre-tariff inventory runs out
TORONTO — The head of Loblaw Cos. Ltd. says the company expects a surge of tariff-related price increases at its stores as its pre-tariff inventory runs out. Chief executive Per Bank says that so far, the company has limited the number of tariff-hit products to a little over 1,000 but that within the next week or two it will rise to over 3,000, and could peak at over 6,000 within then next two months. He says in a LinkedIn post that it will still be a small share of the roughly 80,000 items the company stocks, but customers will notice changes to categories including natural foods, pantry staples and health & beauty products. The company has been adding a 'T' symbol to products affected by tariffs, and Bank says both the company and customers keep seeking out products from Canada and outside the U.S. He says he's also pleased that the Canadian government changed its counter-tariff policy to only apply to finished products. Canada has imposed reciprocal tariffs on about $60 billion worth of goods imported from the U.S., along with additional auto-specific counter-tariffs, in response to what the government says is unjustified U.S. tariffs. This report by The Canadian Press was first published May 14, 2025. Companies in this story: (TSX:L) The Canadian Press Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Calgary Herald
30-04-2025
- Business
- Calgary Herald
Loblaw still adding Canadian products but CEO says 'Buy Canadian' trend may not last
Article content Loblaw Cos. Ltd. says it's still working to stock its grocery store shelves with more Canadian products as shoppers look for local alternatives during the Canada-United States tariffs-driven trade war, but the company's chief executive admits the shift may not last. Article content 'We recognize that Canadians care deeply about the region of the product they purchase and we continue to actually seek out Canadian growers and manufacturers for the products we sell,' Loblaw president and chief executive Per Bank told analysts on a conference call Wednesday, as the company reported its first-quarter profit rose compared with a year ago. Article content Article content 'Just before this meeting, I was down in the test kitchen and I was observing that they are testing a lot of new products,' Bank said. Article content 'They have been really, really busy to help mitigate the tariff situation so we can buy less from the U.S.' Article content With tariffs adding to pressure on the cost of some food items and other essentials, Bank said the grocery retailer is 'working diligently to keep prices as low as possible.' Article content Article content Earlier this year, Loblaw began highlighting domestic products in its stores while also marking products that have seen price hikes due to tariffs. It also added a 'swap and shop' feature to its loyalty app to help shoppers find Canadian products more easily. Article content Article content Asked if he anticipates the 'Buy Canadian' trend will persist, Bank said he was hopeful, but predicted that 'maybe a third of it will stick' long term. He said price and quality are still the most important factors customers consider when choosing which products to buy. Article content 'If price and quality is best (for) a Canadian product, then they choose those, but if it's a foreign product, they will choose that,' said Bank. Article content 'Right now, they prefer Canadian products. I would say if the price is almost the same, like up to five per cent different, then customers buy Canadian, so I hope it sticks.'
