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Industry NewsLoblaw drug retail, discount drive growth in 2022 Q1

Loblaw drug retail, discount drive growth in 2022 Q1

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Loblaw delivered a strong first quarter driven by sales growth in drug retail and discount.

Revenue was $12,262 million, a $360 million increase, or 3.3 per cent. Retail segment sales, which hit $12,045 million, increased by $375 million or 3.2 per cent. Drug retail performed the strongest, with same-store sales increasing 5.2 per cent, followed by same store food retail sales increasing 2.1 per cent.

The growth in drug retail that drove margin expansion was a result of front store and prescription sales that benefited from the loosening of social restrictions.

Loblaw notes that the company’s strong performance in its discount division was led by its No Frills banner, while the Market division “performed well relative to the Canadian conventional grocery sector but was impacted by the shift to discount.”

Foods sales continued to benefit from what Loblaw says were “higher than normal eat-at-home levels” and from customers’ favourable response to “data-driven marketing promotions and PC Optimum loyalty program offers.”

Galen G. Weston, chairman and president of Loblaw Companies Limited, says the company “demonstrated consistent operating and financial results, reflecting the strength of its portfolio of businesses and the ability to provide service and value to meet the evolving needs of Canadians. We have begun the year with momentum in our core retail businesses,  clear strategic agenda, and continued traction in our growth initiative.”

Read the full financial report.

 

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