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.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

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”.

See Also:

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.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

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.