Loblaws reported fourth-quarter profits of $646 million compared with $462 million for the same quarter last year.
But same-store sales inched up by only 1.5 per cent, far less than the rate of food inflation.
Yet Loblaws’ revenues increased from $14.78 billon to $16.38 billion for the quarter because it opened scores of new discount stores such as No Frills.
It said there has been a shift in consumer demand to lower-priced items such as its President’s Choice and No Name products that compete with brand names and from organic fruits and vegetables to lower-priced conventionally-grown produce.
