Wednesday, July 28, 2021

Loblaw sales flatten, profits soar

Loblaw Companies Ltd. reported that supermarket sales flattened during its second quarter, gaining only one-tenth of one per cent over the same period last year.

But its Shoppers Drug Mart division increased sales by 9.6 per cent, resulting in a 4.5 per cent in company revenues to $12.5 billion.

Profit increased from $169 to $375 million, mainly because costs declined. That reflected an end to bonuses it was paying staff to work during the COVID-19 pandemic.

Last year the company’s grocery sales rose sharply because restaurants and cafeterias were closed so people were preparing meals at home with ingredients purchased from Loblaws, No Frills, Zehrs and Real Canadian Superstores.

Loblaw’s e-commerce sales fell by 0.5 per cent in the quarter, after growing by 280 per cent in the second quarter of 2020.