TORONTO — Loblaw Cos. here said last week that it has hired third-party firms to assist in the liquidation of certain inventory, primarily general merchandise.
The company had said in its third-quarter earnings report that inventory liquidation was one of several areas under review during the fourth quarter. Loblaw said it expects to incur a pretax charge in the fourth quarter in the range of about $85 million to $102 million (U.S.), including the loss on disposal of the inventory being liquidated and costs associated with storage, transportation and the liquidation process.
The company said reducing its inventory levels will boost the efficiency of its supply chain operations and the service levels provided to its stores and customers.
Loblaw, which last year projected slowing earnings growth due to distribution problems and other factors and underwent a management overhaul, recently said it is refocusing its business around three themes: “Simplify, innovate and grow.”
