While grocery stores across the country are the subject of a study by the Canadian Competition Bureau, Metro and Loblaw are both recording increases in revenue, according to their results announced Wednesday.
“Solid performance” at Metro
A “solid performance”. It is in these words that the president and chief executive officer of Metro, Eric La Flèche, qualified the end of the 2022 financial year of the Quebec company. Revenues of $18,888.9 million are up 3.3%, net earnings are up 2.9%, and adjusted net earnings are up 7.9%. For the fourth quarter of its fiscal year 2022, which ended September 24, sales rose 8.3% to 4,432.6 million. At 20.4%, the gross margin remained stable, however. It was 20.2% for the fourth quarter of 2019, before the pandemic. Metro, in addition to its eponymous brand, notably manages Super C, Marché Richelieu and Jean Coutu. “Our diversified business model has allowed us to maintain stable gross margins while delivering good value to our customers, as evidenced by our overall tonnage growth and market share gains during the quarter,” said Mr. La Flèche in a press release. We are confident that our dedicated teams, multiple banners, private label products, effective weekly promotions and loyalty programs position us well to continue to serve our customers’ needs well as we navigate these turbulent times. »
Mercedes at Loblaw
The Canadian company, which owns the Maxi, Provigo and Pharmaprix stores in Quebec, experienced a 29% increase in net income in its third quarter compared to the same period last year, to reach $556 million. Adjusted net profit amounted to 663 million, up 22.8%. The margin is 30.8%, compared to 29.6% for the same period in 2019. Loblaw recorded sales of $17,388 million, which represents an increase of 8.3%. “We’re seeing a lot more Mercedes and Range Rovers in the parking lots of these stores than before,” Chairman Galen G. Weston said during a conference call with analysts to discuss the company’s latest financial results. . “The low price formula is successful in converting high-income customers. »
Provigo stores converted to Maxi
Galen G. Weston and Richard Dufresne, Chief Financial Officer, reiterated, during the presentation of their results, the company’s intention to convert Provigo stores into Maxi, Loblaw’s discount brand. Since the beginning of 2022, a dozen of them have changed brands. At least four others are expected to suffer the same fate over the next few months. Loblaw currently has 77 Provigo supermarkets in Quebec, 70 of which are owned by franchisees.
Focus on loyalty programs
More and more customers who shop at Maxi, Provigo and Pharmaprix are becoming members of the PC Optimum rewards program. “Everything indicates that 2022 will be a record year in terms of the number of points awarded to members,” confirmed Johanne Héroux, Senior Director of Corporate Affairs and Communications at Loblaw. “The enthusiasm for the PC Optimum program is undeniable. There is a constant flow of new members while existing members use it even more. »
For its part, Metro will launch its Moi program in the spring, replacing metro & moi. With Jean Coutu, which dropped Air Miles, like IGA, Moi will be found in the various brands of the group. Losses in value of assets for the withdrawal of Jean Coutu from the Air Miles program have been assessed by Metro at 60 million.
With The Canadian Press