STELLARTON, Nova Scotia — Sobeys posted gains in sales and earnings despite an increasingly deflationary environment in its fiscal second quarter.
Sales of $3.6 billion (U.S.) increased 4% and net earnings of $63.7 million were up by 22.1% for the quarter, which ended Oct. 31, the retailer said Thursday. Same-store sales improved by 2.7%, despite “negligible” inflation, according to Bill McEwan, chief executive officer, speaking in a conference call with analysts.
According to McEwan, Sobeys has dealt with falling prices with exceptional “day to day management” and cost controls. “It’s careful management of the details and the pricing structure and the promotions,” he said. “We’ve been through some deflationary cycles before. This one is more acute and more profound, but our teams are on top of it.”
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