As Loblaw faces shopper backlash due to high prices and awaits the impact of a customer boycott, the retailer is off to a strong start financially.
Revenue for the first quarter of 2024 came in at just over $13.5 billion, which is a 4.5% year-over-year increase, or $586 million.
Same-store increases for food were up 3.4% compared to Q1 2023 while drug same-store sales bumped up 4.0% led by pharmacy and healthcare services, which registered same-store sales growth of 7.3%.
Ecommerce sales experienced a 16.1% bump year over year.
Adjusted EBITDA was just over $1.5 billion, an increase of $96 million vs. 2023, or 6.6%.
Operating incomes increased $92 million year over year to $861 million in the first quarter, marking a 12% increase.
Loblaw’s stock price was up almost 1% on Wednesday afternoon following the earnings call.
“We continued to deliver value, quality, and service across our various banners, which led to more customers choosing our stores,” said Per Bank, president and CEO of Loblaw Companies Limited. “Our dedicated, strategic plan and unique assets position us well to best serve the needs of Canadians today and in the future.”
As for the upcoming boycott, Bank said he’s aware of the shopper frustration as they continue to lean on more private-label products and discount stores.
In a recent interview Bank said Loblaw is producing new promotions and an expanded discount footprint.
Bank added the No. 1 goal is to fix any problems with shoppers, which at this time is high prices.
The boycott was scheduled to begin today and last the entire month of May. Created by Reddit group Loblaws Is Out of Control, which has more than 60,000 members, the social media channel is a way for shoppers to vent their frustrations about high grocery prices and also contains a list of demands in order for the boycott to end.
Posters calling on shoppers to steal from Loblaw on May 12 can also be seen in places like Toronto.
Loblaw is also getting heat for not signing the grocery code of conduct. Documents obtained through the Access of Information Act note both Loblaw and Walmart have not agreed to the rules aimed at improving supplier and retailer relations.
Loblaw believes the agreement would create a $1 billion spike in grocery prices.
