TORONTO (FNS) -- Loblaw Cos. here plans to open three more stores in Quebec this year and expects to open one new store there per quarter for several years, Richard Currie, president, told shareholders at last week's annual meeting here.
Loblaw opened its first store in Montreal, Quebec, earlier this year.
Currie said the company will invest $350 million (U.S. at an exchange rate of $1 U.S. equals $1.47 Canadian) for capital expenditures this year, close to the record amount it spent last year.
"We have continually invested more than twice our net earnings into fixed assets like stores," he noted.
Currie said capital plans for this year include five Real Canadian Superstores, five Real Canadian Wholesale Clubs and 12 conventional stores in western Canada, and 35 openings or major expansions of corporate or franchise stores totalling 1.5-million square feet plus renovations or minor expansions of 25 stores in eastern Canada.
He said the company has no plans to acquire other supermarket chains in Canada.
Galen Weston, chairman, told shareholders he expects Loblaw's profits to grow as much as 20% this year, "and we have a good chance to live up to our 15% to 20% objective for some time to come."
For the first quarter ended March 28 net income rose 19% to $29.3 million (U.S.), while sales rose 13% to $1.8 billion (U.S.).
The meeting was held in the mezzanine area of Queen's Quay Market, Loblaw's newest store location on the waterfront here, which opened in early June. The mezzanine is usually occupied by a sit-down restaurant, a cooking school and a community center area. The store incorporates a Movenpick Marche, with whom Loblaw is in partnership at five area stores here, with plans to put the restaurant into all larger Montreal stores, Weston said.
