Savings associated with a switch from American Express to Visa cards over the summer helped Costco Wholesale post a narrow profit gain in its fiscal fourth quarter, helping to overcome sluggish U.S. comps impacted by food deflation.

The Issaquah, Wash.-based membership warehouse club said sales for the 16-week quarter, which ended Aug. 28, totaled $35.7 billion, an increase of 2% from the same period last year. In the U.S., comparable store sales declined by 1%, but were up by 2% excluding foreign exchange rates, gasoline and deflation. Net income for the fourth quarter was $779 million, or $1.77 per share, a 1.6% increase from last year. Analysts had been anticipating Costco would post EPS of $1.73.

In a conference call discussing results late Thursday, Costco CFO Richard Galanti said the chain’s switch from accepting only American Express cards to only accepting a co-branded Visa card overcame a glitchy June launch but is proving popular with shoppers — who have more opportunities to earn rewards with the card — and more efficient for the company.

“The new card is fantastic for our members … and it’s also great for us in terms of driving member value in sales over the next years and, of course, lowering our effective cost of accepting credit and debit cards,” Galanti said.

Approximately 11.4 million American Express co-branded cards representing about just under 7.5 million accounts were transferred over to Citi during the conversion, Galanti said. More than 85% of transferred accounts have now been activated for Costco, and more than 1.1 million members have applied for the new card, he said.

Echoing the remarks of other food retailers, Galanti said Costco experienced significant food price deflation, particularly in proteins, during the quarter. Based on remarks from suppliers, Galanti estimated that such conditions could continue for another six months. In the last month, he said, the price of almonds was down 38% from the same period last year and whole eggs down by 54%. “Those things, particularly things like eggs really add up,” he said.

He added however that organic sales were up by 20% at Costco during the year, although some of those sales cannibalized conventionally grown counterparts. “It’s the perfect item for us, because it’s our member.”

Asked about competition from Amazon, Galanti said the company was making slow progress in e-commerce but maintained Costco’s value proposition “is best served for us when it’s in-store getting our members to come in and buying when they can see everything there that we have,” particularly in food.

“On the fresh food side, we’re glad that fresh is difficult,” he added. “We don’t believe that everybody’s going to just have everything delivered, but we’ve got to work hard to make sure they want to come and see it.”

For the fiscal year, net sales totalled $116 billion, an increase of 2%, with U.S. comps up by 1%, or 3% when adjusted for gasoline and foreign exchange rates.

Canada’s largest Western-based grocer, Save-On-Foods, is now implementing MyWebGrocer’s (MWG) Digital Experience Platform for an omnichannel shopping experience.

“To effectively navigate the changes created by the proliferation of digital grocery, and take full advantage of the tremendous opportunities for customer experience innovation that omnichannel retailing now provides, grocers will increasingly require a future-proof solution based on a modern software architecture that powers the totality of the customer lifecycle versus bifurcated moments of engagement that too often live in isolation,” says Eric Healy, president of MWG.

The platform enables the grocer to provide customers with promotional content based on their local store and enables customers the ability to seamlessly shop across all devices. It also provides the company with enhanced order fulfillment and multi-wave picking capabilities to increase efficiency.

“We strive to provide our customers with a superior experience that brings together our digital capabilities and the store, and also ensure that our click and collect operations are as efficient as possible,” adds Wayne Currie, vice-president of Information Technology & E-commerce for the Overwaitea Food Group and Save-On-Foods.

As more and more grocers hop into the world of e-commerce, consider your sales strategies to make use of this trend.

Amazon is now offering free same-day delivery to its Prime members in Toronto and Vancouver. The company introduced same-day delivery for a fee in these cities two years ago.

In the Canadian market, same-day e-commerce delivery is still in its early stages. During the 2013 holiday season, Walmart Canada introduced same-day deliveries in a pilot project with Canada Post in the Toronto area, but has since dropped it.

According to Danielle Doiron, director of parcels market development at Canada Post, there is a growing demand for same-day delivery, especially when consumers see it available in other markets. That being said, competition for online shoppers has raised the expectations of Canadian consumers. Canada Post’s research has found that 16 per cent of online shoppers abandoned their cart as a result of delivery times displayed at the checkout being longer than desired. Moreover, four per cent of online shoppers would choose to pay for same-day service.

As this trend continues, major chains and online retailers must figure out how to quickly and efficiently get items to their customers. With retail giant Amazon starting the wave, other companies must follow suit to avoid being overtaken.

David Bloom, the former chairman and CEO of Shoppers Drug Mart, died on September 25 at age 76.

Bloom started working for the company in 1967 as a pharmacist in the Yorkdale Shopping Centre.

In 1971, he joined the Shoppers’ management team as director of operations. He was then appointed president and CEO in 1983 and given the title of chairman in 1986. He served as chairman and CEO until his retirement in 2001.

During his time as chief executive, Bloom doubled the chain’s store count, quadrupled its sales and spawned a tenfold increase in earnings. He also launched the Shoppers Optimum Program in 2001, which has become one of Canada’s most popular customer loyalty programs.

Memorial donations can be made to the Princess Margaret Hospital Foundation.

Linda Bolton, founder and co-owner of TOP Nutritionals, has announced the appointment of John Halbert as CEO, effective October 3, 2016.

After more than ten years at the helm, having effectively created a market for magnesium supplements in Canada, Linda Bolton is stepping down as CEO.

“When I first brought Natural Calm into the country, there was very little awareness of the need for magnesium. People just didn’t know that magnesium deficiency was at the root of their sleeplessness, stress, muscle pain, headaches, and disease. I poured all of my energy into educating the public on how much better they could feel with a magnesium that really works. Now, that awareness exists, and Natural Calm is a household name in Canada.”

Linda will continue to play a strategic advisory role, but will pour her entrepreneurial energies into Organics 4 Orphans (O4O), the not-for-profit Linda founded with her husband, Dale. O4O has long been at the very heart of Natural Calm and part of what sets the company apart.

“When Natural Calm sales took off, Dale and I made an agreement. We couldn’t see ourselves growing a business just for the sake of profit; it had to be a business with a difference. And that’s how we became a social enterprise.”

O4O is headquartered out of an innovative training centre in Kitale, Kenya, where the indigenous-led team teaches organic gardening, nutrition, natural medicine and garden-based income generation. The Boltons are excited at the momentum gathering behind O4O and together will broker new partnerships and expansion into previously unreached areas of the developing world.

John Halbert has been a champion of O4O throughout his 6-year tenure as Vice President, Operations, TOP Nutritionals. His commitment to the cause, his strategic vision and his demonstrated leadership made John a natural choice to scale up the growing company.

Prior to joining TOP Nutritionals, John worked in the software industry, serving the last 10 years as Vice President, Development at i2 Technologies.

Says John, “What Linda and Dale have done with Natural Calm and O4O is unprecedented. They demonstrated to the industry how business can make an outsized impact. It is an honour to take on the leadership of one of the best social enterprises in the country. And just as we changed the health landscape in Canada with a magnesium product that people just love to take, we plan to keep introducing products that meet unfilled needs and change Canadians’ health. It will be an exciting time to lead.”

After two years of research and development, Dr. Reckeweg has released a new all-in-one trauma cream: R55+.

R55+:

• Has an affinity for the tendons and ligaments, to reduce stiffness and accelerate recovery
• Reduces local inflammation and pain
• Promotes lymphatic movement and muscle relaxation
• Minimizes rheumatic symptoms affecting the muscles and joints

R55+ cream is a topical to assist with the healing of trauma caused by sports or accidental injuries. It helps to reduce inflammation, swelling and with the unique addition of Mag phos and Galium, it reduces tension and improves drainage, thus promoting complete tissue healing.

R55+ cream supports injuries of all types; wounds, cuts, burns, sprains, and bone fractures, conditions of athletic or physical overexertion, persistent rheumatism at sites of previous injury.

Ingredients include: Arnica D3, Galium aparine D6, Hamamelis D1, Hypericum D4, Ledum D4, Magnesium phosphoricum D6, Rhus toxicodendron D8, Ruta D4, Symphytum D6.

Nature’s Path, a family-owned producer of certified organic goods, has announced its acquisition of a 51 per cent stake in Gorilly Goods. Wisconsin-based Gorilly features a line of raw, on-the-go snacks that include organic and non-GMO nuts, fruits, seeds and greens.

While the terms of the deal have not yet been disclosed, this agreement will provide the needed capital for Gorilly Goods to increase its manufacturing abilities. Additionally, it will allow the brand to expand its distribution throughout North America.

As North America’s largest organic breakfast and snack food company, Nature’s Path is well-suited to take on this new venture and expand its product line. In recent years, the company has also acquired Que Pasa and Country Choice Organics.

“There is so much to say about the natural alignment between our two companies – the enjoyment of food, life and giving and of course, deliciousness,” says Gorilly Goods co-founder Stephen McDiarmid.  “We couldn’t feel more kindred with both the company and the family.”

Adds Gorilly co-founder and CEO, Chris McDiarmid, “Our new partnership represents new opportunities for our employees, improved operations and continuing our commitment to the Dian Fossey Gorilla Fund. We’re ecstatic to be part of such a well respected, trusted and successful organization that has helped grow and shape the organic food industry.”

Health Canada has proposed changes to the ways in which natural health products (NHPs) are regulated. Now, the organization is suggesting that these goods should be controlled in the same ways as pharmaceutical drugs.

Currently, NHPs are required to undergo rigorous inspection by Health Canada and the Standing Committee on Health as well as consumer, government and international regulatory consultations. Additionally, Health Canada must approve all NHPs before they may reach the market, which requires companies to provide evidence—often published studies—to support any health claims they make.

The new regulations, however, will require some NHPs to be treated as if they are drugs. This will require the makers of these products to provided further clinical study on their ingredients, potentially driving up their cost. These changes could also limit consumer access to safe, effective and high-quality natural products.

The Canadian Health Food Association (CHFA) is highly opposed to these changes, and is currently running a campaign called “Our Natural Health Products Are Not Drugs” to combat them. For more information on this initiative, visit chfa.ca.

With his new book, “Nesiritide: The Rise and Fall of Scios,” Roger M. Mills, M.D., aims to inform the general public about the inner workings of the pharmaceutical industry. Specifically, he gives readers an inside look into the development, early success and subsequent demise of a biotechnology drug that he helped to develop.

“‘Nesiritide’” gives the non-medical public an unprecedented insight into the complexity, risk, and competitiveness of drug development,” Mills said. “It demonstrates the devastating impact of media attention to questions of drug safety.”

Before his work at Scios Inc., Miller practiced as an academic clinical cardiologist. He joined Scios, a Johnson & Johnson operating company, in 2005, and layer moved on to Johnson & Johnson’s Janssen Research & Development, LLC as a senior director in clinical research. Since this time, Mills has adopted the mission to better inform the medical community and the public about the often-mysterious pharmaceutical industry.

For more information, visit http://www.rmillsmd.com/.