10 hours Ago
A display of made-in-Canada products stands at the end of an aisle in a Loblaws store in Ottawa, on April 2. Justin Tang/The Canadian Press Loblaw Cos. Ltd.
L-T has onboarded 30 new Canadian suppliers in response to the Buy Canadian movement, as tariffs from the trade battle with the U.S. begin showing in prices this quarter.
President and chief executive officer Per Bank said the company has seen more Canadians choosing to purchase Canadian goods over foreign products even before the full impact of tariffs on prices, especially digitally. The uplift of Canadian products purchased online was more than double that trend in stores, as digital tools allow consumers to easily swap goods for items made in Canada, Mr. Bank said.
E-commerce sales grew in the first quarter by 17.4 per cent. However, Mr.
Bank said he doesn’t expect the shift to be permanent. “Using my experience, maybe one third of it would stick,” he said in an earnings call Wednesday morning, noting that many customers will focus on “price and quality.” Mr.
Bank said consumers will give roughly a 5-per-cent allowance in price difference, before purchasing the lower-cost product made outside of Canada. However, he also said the need to limit imports from the U.S.
because of tariffs might help preserve that cultural push. “I think we will be supporting the Canadian society more than we have done in the past. At least that’s good for something with the tariffs.
Probably the only thing it’s good for.” With consumers focusing on value, Loblaw is increasingly looking to gain market share in discount food retail stores. It had previously announced plans to open 80 new stores this year; 50 are set to be discount stores, five of which opened this quarter.
“Canadians, they are underserved with high discount,” Mr. Bank said. Chief financial officer Richard Dufresne said the company recognizes the significant affordability headwinds over the past few years.
In February, Canada’s gross domestic product contracted by 0.2 per cent . For March, food inflation was 3.
2 per cent, nearly a full point above the Consumer Price Index reported by Statistics Canada at 2.3 per cent. Mr.
Dufresne said the new stores are driving the company’s top line . “We’ve opened one last week again, that we can’t believe the numbers,” he said. The Brampton, Ont.
-based retail giant reported revenue and profit growth in the first quarter, with total revenue of $14.1-billion, a 4.1-per-cent increase for the period ending March 22, 2025.
Net earnings available to common shareholders grew more than 9 per cent from the previous year to $503-million, or $1.66 per common share. That compares with net earnings of $459-million or $1.
47 per share in the same period the year before. Retail profit margins were stable. Loblaw also said it’s increasing dividends by 10 per cent – the 14th consecutive year of dividend increases – to $0.
5643 per common share from $0.513. Same-store sales – an important metric that tracks sales growth not tied to those new store openings – also grew by 2.
2 per cent in the quarter at Loblaw’s grocery stores. It also increased by 3.8 per cent at its drugstores, including Shoppers Drug Mart.
Same-store sales at the front of the store grew by 0.9 per cent after consecutive quarters of decline. Beauty products were a large driver of growth in drugstores.
Mr. Dufresne, asked during an earnings call by an analyst about goals for Loblaw in the wake of Hudson’s Bay closures across the country, said the company is looking for opportunities to fill the gap in market share for areas such as premium cosmetics. The company is also looking toward generic versions of Ozempic that could be coming to Canada.
It has historically been positive for Shoppers Drug Mart when drugs go generic, as demand rises with falling prices, Mr. Dufresne said. Adjusted earnings before interest, tax, debt and amortization grew 3 per cent in the quarter to $1.
59-billion from $1.54-billion..
