The Canadian government continues to put pressure on Loblaw to sign off on a grocery code of conduct, but in the meantime the retailer is setting new standards when it comes to financial performance.
Loblaw produced a successful fourth quarter, reporting gains in every meaningful category. Revenue was up 3.7% year over year at just over $14.5 billion and retail segment sales increased 3.4% at over $14.1 billion.
Breaking it down further, food retail same store sales rose 2% year over year while drug retail same store sales increased 4.6%. Pharmacy and health care services spiked 8% year over year.
Ecommerce was up 14.6% for the fourth quarter and the adjusted EBITDA rose 9.4% year over year.
Loblaw also announced it will invest $2 billion to build 40 stores and 140 new pharmacy care clinics, expand or relocate 10 stores, and renovate an additional 700 locations.
“These investments in Canada are a catalyst for job growth and the creation of countless opportunities, in our stores, in our company, and with the many partners who work with us,” said Per Bank, president and CEO, Loblaw Companies Limited.
Meanwhile, the Canadian grocer along with Walmart Canada refused to sign off on a code of conduct designed to improve relations between grocers and suppliers.
Earlier this week, Canada’s House of Commons Committee threatened to make the code of conduct mandatory if Loblaw and Walmart Canada did not voluntarily sign on.
For fiscal year 2023, Loblaw produced a 5.4% increase in revenue year over year at just over $59.5 billion. Food retail same store sales were up 3.9% and drug retail same store sales improved 5.4% year over year.
Ecommerce surged 10.7% vs. fiscal year 2022.
