Loblaw to ramp up store network expansion in 2025 as it continues to focus on value
Bank said he expects that search for value will continue for the “next many years.”
“That’s also why we are building many of the new, small stores in our hard discount, because that resonates so well with our customers,” he said. “They're performing good and that's how we provide real value to Canadians, because those stores are much cheaper than the average store.”
Loblaw opened 25 hard discount stores in Q3, including six small-format No Frills stores. It plans to open 20 new Maxi and No Frills stores in the fourth quarter.
Its new distribution centre is expected to come online in the first quarter of 2025.
Bank also discussed the rapid growth of Loblaw’s T&T banner. In the last three months, the Asian supermarket chain opened stores in Brossard, Que., Kanata, Ont. and London, Ont.
T&T is set to open its flagship U.S. store in Bellevue, Washington this December.
“Our T&T stores continue to outperform our existing network, and are generating consistent high, single-digital same-store sales growth,” Bank said.
Loblaw reported net earnings of $777 million in its third quarter, up 25% year-over-year.
The reversal of a charge related to a previous President's Choice Bank commodity tax matter positively impacted net earnings by $125 million, Loblaw said.
Revenue was $18.54 billion, up 1.5%. Retail segment sales came to $18.26 billion.
Food retail same-store sales rose by 0.5% compared to 4.5% last year. Loblaw attributed the decline to the timing of Thanksgiving. Excluding that, food retail same-store sales rose 1.3%.
E-commerce sales increased by 18.5%.