Loblaws defies critics, boosts profit

 

Loblaws is defying critics, posting a 9.8 per cent increase in profits for the first quarter while shoppers in the Ottawa area are calling for a boycott of Loblaws-owned stores, including Zehrs Markets, Superstores and Shopper’s Drug Marts.

The company also increased quarterly dividends by 15 per cent.

It’s net earnings amounted to $459 million on revenues of $13.6 per cent, which was a 4.5 per cent increase.

The company said more people are coming into its stores, that It is gaining on competitors, that it has experienced less “shrink which includes shop-lifting and that its prices remain below Statistics Canada’s measures for calculating inflation.

The call for a boycott includes all things Loblaws owns, including President's Choice (PC) financials.

“I’m going to be closing my PC bank account,” said Emily Johnson, who created the Reddit group r/loblawsisoutofcontrol where the boycott began. “I’ve already moved all of my prescriptions to my local pharmacist as well.”

Johnson said people can also donate food or money to their local food bank, and to share news and information about the boycott on social media to ensure the movement continues to grow.

“You might not be able to to boycott, but other folks in your circle may be able to, and that’s a big way of encouraging solidarity among Canadians,” she said.

She is also critical of Loblaws' refusal to sign on to a code of practice that has support from all other major grocery retailers except WalMart.