Last week, Loblaw Companies Ltd. reported a 2.1 per cent decline in same-store sales, while competing grocer Metro Inc. saw a 0.3 per cent increase in the same category.
During an analysts’ call, CEO Galen G. Weston noted that while competition is intense, deflationary pressures should balance this out to some degree.
In the same call, Weston also brought attention to several successes. This included an increase in tonnage growth, a continued push into the company’s Click & Collect program, and new fresh offerings at Shopper’s Drug Mart.
The pharmacy chain saw a 3.6 per cent increase in food and front store sales in the first quarter. Weston notes that new food offerings were key drivers in this success.
“Our enhanced food proposition has been performing really well, specifically within urban markets in Toronto,” said Weston. “It’s been performing really, really well in the stores where we have deployed it, specifically in the urban markets in Toronto. We are continuously looking for incremental locations to add to that proposition.”
Weston also noted that the company’s Click & Collect Internet service had climbed to 128 stores by the end of the first quarter.
