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Loblaw Looks to Extend Pricing Program

Convinced that low pricing is driving improvements in same-store sales and volumes at its superstore and discount divisions, Loblaw Cos. said it would will bring its price-investment strategies to conventional banners in 2008.

Jon Springer, Executive Editor

February 8, 2008

1 Min Read
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JON SPRINGER

TORONTO — Convinced that low pricing is driving improvements in same-store sales and volumes at its superstore and discount divisions, Loblaw Cos. here said it would will bring its price-investment strategies to conventional banners in 2008. Company officials acknowledged Thursday that the pricing strategy would likely keep pressure on earnings through the first half of the year, but that Loblaw could protect margins by paying for the investments with corporate cost reductions. Loblaw on Thursday reported a net profit of $39.5 million for the fiscal fourth quarter ended Dec. 30, vs. a $756 million loss in the same period a year ago. Sales of $6.9 billion (U.S.) improved by 2.7% while comparable-store sales increased by 2.6%, while operating margins fell to 3.3% from 4.4% a year ago.

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About the Author

Jon Springer

Executive Editor

Jon Springer is executive editor of Winsight Grocery Business with responsibility for leading its digital news team. Jon has more than 20 years of experience covering consumer business and retail in New York, including more than 14 years at the Retail/Financial desk at Supermarket News. His previous experience includes covering consumer markets for KPMG’s Insiders; the U.S. beverage industry for Beverage Spectrum; and he was a Senior Editor covering commercial real estate and retail for the International Council of Shopping Centers. Jon began his career as a sports reporter and features editor for the Cecil Whig, a daily newspaper in Elkton, Md. Jon is also the author of two books on baseball. He has a Bachelor of Arts degree in English-Journalism from the University of Delaware. He lives in Brooklyn, N.Y. with his family.

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