A recent report from Loblaw reveals an increase in profits, suggesting that the Weston family’s earnings have remained unaffected by growing anti-Loblaw sentiment in the past few months.
George Weston Limited (GWL), the holding company that owns Loblaw Companies Limited and Choice Properties Real Estate Investment Trust, shared its 2024 first-quarter report, which reveals “strong operational and financial results.”
The company reported a revenue of $13.74 billion, an increase of $602 million, or 4.6%. In comparison, the company made a profit of $13.13 billion in the first quarter of 2023.
“Our first quarter results reflect the consistent and positive momentum from our operating businesses,” said Galen Weston, chairman and CEO of George Weston Limited.
“Loblaw continued to provide value and service to its customers, resulting in strong market share gains, and Choice Properties delivered consistent operational and financial results while improving the quality of its portfolio.”
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According to the report, Loblaw attributes the increase to a “focus on retail excellence.” It attributes sales growth to No Frills (its discount banner stores), private label brands, and PC Optimum offers. Loblaw-owned Shoppers Drug Mart and Pharmaprix saw an increase in sales of beauty products as well as cough and cold products.
“This resulted in higher store traffic, strong market share gains in food retail, and revenue growth that stands out against lower internal inflation,” reads the report.
Meanwhile, Choice Properties had over $60 million of real estate transactions and finished projects worth around $75 million during that first quarter.
Whether or not these profits will continue into the next quarter remains to be seen.
Canadians fed up with Loblaws’ “out of control” prices created a sounding board on Reddit. The online community called Loblaws is Out of Control started as a place to share memes and complain about the grocery chain’s soaring prices.
Now, the online community, which has over 74,000 members, is boycotting Loblaw stores throughout May. In addition to pricing issues, the company faced backlash when it flip-flopped on its 50% discount on nearly expired items.
With files from Isabelle Docto and Simran Singh