CANADA: Loblaw sees space race easing in H2
Canadian retail giant Loblaw has predicted the recent space expansion seen in the country's grocery sector will "moderate" in the second half of the year.
Rivals Metro Inc and Sobeys have recently reported lower margins as they moved to invest in price, citing increased comeptition in the country. Loblaw did the same yesterday (20 February) as it posted results for its fourth quarter to 28 December.
Loblaw said a recent wave of expansion by Canada's grocers had intensified competition but it indicated that could ease later in the year.
"In the first half of 2014, the environment is expected to remain extremely competitive driven by continued greater than historical square footage expansion, which is expected to moderate in the second half of the year," it said.
Loblaw said it had been to grow revenue and adjusted operating income in 2013 by "focusing on its customer proposition and generating targeted efficiencies".
Revenue was up 2.4% at C$32.37bn (US$29.02bn). Adjusted operating income grew 2.6% to C$1.33bn. Reported operating income, which included the impact of items like impairment costs, was up 11% at C$1.33bn.
Net earnings dipped 0.6% to C$630m as Loblaw's income tax bill rose.
Loblaw said its retail sales were up 2.1%, while its same-store sales increased 1.1% year-on-year. Its adjusted operating margin was flat at 4.1%.
The company's results for the fourth quarter were less strong.
Revenue was up 2.3% at C$7.64bn. Retail sales increased 1.8%. Same-store sales grew 0.6%.
Adjusted operating income fell 0.9% to C$322m. Loblaw's adjusted operating margin dipped from 4.4% to 4.2%.
Net earnings were down 8.6% at C$127m.
However, shares in Loblaw closed up 4.75% at C$44.29 as the fall in Loblaw's earnings was not as steep as analysts had expected.
Loblaw Companies Limited (L) - Strategic SWOT Analysis Review provides a comprehensive insight into the company’s history, corporate strategy, business structure and operations. The report contains a ...
Agricultural Products in Canada industry profile provides top-line qualitative and quantitative summary information including: market size (value and volume 2009-13, and forecast to 2018). The profile...
In 2013, grocery retailers showed healthy growth over the previous year despite declining consumer spending, increasing competition due to new entrants, rising square footage in comparison to populat...
Introduction Food Retail in Canada industry profile provides top-line qualitative and quantitative summary information including: market size (value 2009-13, and forecast to 2018). The prof......
Synopsis The report provides a review of the mergers and acquisitions (M&As), partnering deals, and agreements entered into by companies active in the global dairy food market during July 2014. Summa...
Synopsis The report provides a review of the mergers and acquisitions (M&As), partnering deals, and agreements entered into by companies active in the global ice cream market during July 2014. Summar...
Business Monitor International's Canada Food and Drink Report provides industry professionals and strategists, corporate analysts, food and drink associations, government departments and regulatory bo...
- Foodservice focus - all-day breakfast; concept NPD
- Decision on US dietary advice missed opportunity
- How brands are eyeing their own retail presence
- Retail margin management in spotlight
- Why Lactalis could move for Dairy Crest
- Arla banned from selling skyr yoghurt in Finland
- PepsiCo, Coca-Cola 'battle for stake in Chobani'
- Raisio revamps UK cereal arm, jobs to go
- Kerry eyes more European markets for Cheestrings
- Earth's Best infant formula line launched in China
- Global Savory Snacks Market: Merger and Acquisitions August 2015
- Management briefing: just-food’s industry outlook for 2015
- Food and Beverage Coding and Marking Equipment: Market Outlook 2015-2019
- E-Grocery Market in India - Market Research 2015-2019
- Marks & Spencer Plc in Retailing (United Kingdom)