Loblaw Closing 52 Stores
CBJ – Loblaw is closing 52 of its most unprofitable grocery stores over the next 12 months.
The closures would reduce sales by about $300-million, but will add about $40-million to its operating income annually.
The company’s revenue rose to $10.5-billion in the second quarter ended June 20 from $10.3-billion a year earlier, helped by strong sales in its food retail business.
Loblaw posted a profit of $186-million, or 44 cents per share, compared with a loss of $456-million, or $1.13 per share. The year-earlier quarter included costs related to the acquisition of Shoppers Drug Mart.
The company has not revealed which locations are targeted for closure.
The Loblaw chain of grocery outlets includes Superstore, Provigo, and No Frills along with Shoppers Drug Mart, which was acquired last year.