STORE INVESTMENTS BRING HIGHER SALES, PROFITS TO LOBLAW

TORONTO (FNS) -- Loblaw Cos. here reported a profit of $123.5 million or 44 cents a share, up from $95 million or 34 cents a year earlier. Sales increased to $3.18 billion from $2.99 billion.

attributed the sharp increase in sales and profit in recent years to its aggressive capital investment program. Loblaw has been upgrading stores across the country with new superstores, new formats and innovative interiors, resulting in an average 5% sales increase per store.

Loblaw plans to continue its expansion program this year with capital expenditures of about $650 million, a similar amount to last year.

Parent company George Weston Ltd. said earlier that it planned to sell its Neilson Dairy unit and its Connors Bros. Ltd. fish processing division to pay down some of the $1.62 billion in new debt from its recently announced purchase of Bestfoods Baking Co. of Englewood Cliffs, N.J..