New Loblaw Stores, Cost Cuts Boost Earnings
Loblaw Cos. Ltd. says that first-quarter earnings rose 36 percent as it opened 14 new supermarkets and cut costs, reports Reuters.
More than a million customers had signed up for its President’s Choice Financial banking service and analysts said the venture could bring in a profit next year, according to Canada’s largest grocery chain. President John Lederer says the banking arm is adding about 7,000 customers a week.
“They watch their costs well. Their economies of scale are excellent. And they are growing square footage at about four percent a year. Other (grocery stores) would love to be able to do all that,” says Cynthia Rose Martel, an analyst at Harris Partners in Toronto.
Moderator Comment: What makes Loblaw’s successful?
[George
Anderson – Moderator]