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Loblaw Companies LTD (L) |
| Revision as of 21:59, March 18, 2012 (edit) 109.230.216.225 (Talk) (→Recognition as an employer) ← Previous diff |
Revision as of 00:37, March 19, 2012 (edit) (undo) 109.230.216.60 (Talk) (→2011 second quarter) Next diff → |
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| Revenue was $16.841b up 1.2% from 2q10 & 3q10 ($16.646b), ebitda $1143m up 7% from $1068m, profit $433m up 14.6% from $378m. In the last two reported quarters (as of Dec 1, 2011) Metro Inc experienced revenue, ebitda and profit are up 1.8%, down 2.9% and down 1.1% respectively while at Empire-Sobeys they are up 6.1%, 6.3% and 7.5%. | Revenue was $16.841b up 1.2% from 2q10 & 3q10 ($16.646b), ebitda $1143m up 7% from $1068m, profit $433m up 14.6% from $378m. In the last two reported quarters (as of Dec 1, 2011) Metro Inc experienced revenue, ebitda and profit are up 1.8%, down 2.9% and down 1.1% respectively while at Empire-Sobeys they are up 6.1%, 6.3% and 7.5%. | ||
| - | ====2011 second quarter==== | + | I have shopped at Superstore for a very long time now. They're one of the few chnias that makes a knock off of something that I find still tastes the same, or if it doesn't, tastes good enough that I don't miss the name brand. I love that they're so cheap, and I personally don't mind bagging my own groceries. I was happy to say goodbye to Safeway, but sad that Superstore doesn't have any loyalty programs. If they offered air miles rewards I think I could die happy. So, on the rare occasion I'm craving a Safeway sandwich I'll stop by, but for the most part a SS is approximately 12 minutes drive away.At the end of this month I'm moving to Calgary, and crazily enough I made sure my aunt looked at places for me near the Shaw building, as I know there's a superstore around there. The prices make it worth it, completely. I also bought lots of those black re-useable bags that they sell, and I have to say, they definitely are much bigger than they look, they hold up really well, and their handles are super comfortable. Never used one of those green plastic things though. |
| - | Second quarter revenue was 0.1% higher reaching $7.278 billion on stronger retail sales though that was counteracted by reduced revenue from president's choice financial services which is undergoing expansion/investment from Loblaws (for the half total sales were down $32m to $14.15 billion). '''Retail food sales''' made up 98.33% of consolidated revenue during the quarter ($7.157b up from $7.146b) & for the half ($13.914b down from $13.937b). '''Same store sales declined by 0.3% over the 24 week half (-0.4% in the 12 week quarter) possibly the result of higher food price; In Canada the national food inflation in the 2Q of 2011 was 4.0% up significantly from 0.3% in 2010.<ref>{{cite web|url=http://www.loblaw.ca/English/Media-Centre/news-releases/news-release-details/default.aspx?PressReleaseId=0e2cf46c-849c-41cf-b0a0-9b8fa15a5c48|title=Loblaw Companies Limited 2011 2Q Report|date=July 21, 2011}}</ref> | + | |
| - | + | ||
| - | '''Financial Services''' | + | |
| - | Though revenue fell by only 1.6% in the quarter to $121m (-3.7% in the half to $236m) operating income (-62.5% in the qtr to $12m/-46.4% in the hlf to $31m) and ebit (-91.7% in the qtr to $2m/ -81.1% in the hlf to $7m) fell significantly. Higher customer payment rates (stricter credit management policies) discouraged customers from using the services as much. | + | |
| ====2011 first quarter==== | ====2011 first quarter==== | ||
Revision as of 00:37, March 19, 2012
Loblaw Companies Limited (TSE:L, FRA:L8G) is a major food retailer in Canada that also sells clothing (Joe Fresh Style), pharmaceutical products and financial services. In addition to its function as grocer it packages and sells brand name competitive products under its own private labels; no name and presidents choice. It is well placed for further growth in the near future; being consumer and service oriented as well as diverse in terms of the market it serves has helped it remain a leader in Canada (BC chain T&T supermarket which was acquired in the summer of 2009, is Canada's largest Asian supermarket chain. T&T was formerly run by Taiwanese immigrants who established it in1993). Though it operates only in Canada a it competes against companies which also operate abroad (Alimentation Couche-Tard, Wal-Mart).[1] Competition from Sobeys has intensified since it expanded store size and extended hours of operation. In Ontario and Quebec Loblaws competes directly against Metro Inc's Metro & Food Basics (there are about twice as many Metro stores in Ontario as there are in Quebec). 13+ million Canadians shop at Loblaws stores every week. The grocery chain has a 40% market share in Canada (November 2010 interview with Galen Weston, Lang & O'Leary Exchange, CBC). In 2010 Loblaws accounted for 31% of Canadian food sales.[1]
Store size grew steadily in the 7 years leading up to 2010 (21.7% for corporate stores and 23.3% for franchised stores)[2][3] Business is run more efficiently due to the use of a new transport management system to schedule shipments (11 seconds to schedule them compared to 7 hours without it). In 2009 19 mllion square feet of its retail space was refurbished. In the 1970's Loblaws had 100 locations.
Loblaws is 63% owned by Toronto based George Weston LTD (WN) a company named after its Canadian founder whose family (beginning with Garfield Weston, owns 60% of George Weston LTD) presided over most of Loblaws growth after acquiring it in 1947 from Theodore Loblaw. Having business managed by Galen Weston who is also chairman of Selfridges (UK), Brown Thomas (Ireland) and Holt Renfrew (Canada) and owner of such bakery names as Wonder Bread and Boboli appears to have benefited the grocery business as it has provided management with better marketing experience and tools.
Contents |
Company Overview
With over 1,400 direct/indirect locations (1,046 corporate and franchised stores per 2012 February annual report) and 135,000 employees across Canada it oversees the largest grocery store business in the country in terms of total square footage and sales (roughly 2X Sobeys). As of December 2011 56% of locations (584) are corporately owned.[4] Loblaws Companies operates under different names in different parts of Canada; In the maritimes (ns, nb, nfld, pei) it is known as Atlantic Superstore, while in Ontario and Quebec it is Dominion, Zehr's, No Frill's, Provigo and recently the Real Canadian Superstore. While most stores are franchised some are corporately owned. In total there are 26 names/22 banners (fewer divisions because some of those are part of the same division for example Fortino's corporate management is under Zehr's) through which Loblaws markets itself. They are Atlantic Cash & Carry,Atlantic Superstore,Atlantic SuperValu, Axep, Dominion, Entrepôts Presto / Club Entrepôt, Extra Foods, Fortinos, Freshmart, L'intermarché, Loblaws/Loblaw Great Food, Lucky Dollar Foods, Maxi/Maxi & Cie, NG Cash & Carry, No Frills, Provigo, The Real Canadian Superstore/Loblaw Superstore, Real Canadian Liquorstore, Real Canadian Wholesale Club, Red & White Food Stores, SaveEasy (formerly Atlantic SaveEasy),
In terms of size among North American grocers Loblaws ranks just behind Kroger with a market cap of over $12 billion.[5]
Margins at Loblaw Companies (sales less merchandise costs) improved in 2008 due to changes in merchandise costs attributable to the more popular no name and presidents choice labels. A rise in the Green Leaf products business (organic) has more recently raised margins which were being hit by rising food costs and intense competition. The last time negative earnings were recorded was 2006.
In the discount and ethnic market Loblaws competes directly with FreshCo (Sobeys) and Food Basics (Metro Inc.) (ethnic consumers are expected to represent 1 in 3 Canadians in 2031, FreshCo's popularity has made Sobey's eager to replace Price Choppers with it). In the province of Ontario (Canada) 35% to 40% of the grocery shopping is in the discount market making brands like No Frills invaluable to future growth. In the discount and ethnic market Loblaws' No Frills and T&T Supermarket also compete with Metro's Food Basics.[6]
I notice you and many hate this mpcoany and true some of this hate is justified, but is it overdone. As a recent BNN guest pointed out the real estate portfolio of Loblaws is worth about $30 so you get the mpcoany earnings for nothing. Bringing Mark Foote aboard who helped your favourite retailer crappy tire out of the gutter was a step in the right direction. This turnaround will not be quick, but one would think this mpcoany is not going away. The Walmart effect seems to be back news, but should actually help Loblaws become leaner and meaner in the end? You also get the added bonus Sobeys had, which is at any time Weston's could and maybe should, at these prices, buy out remaining shareholders for $40-50/share. I've been watching Loblaws fall since $65 and i get more interested everytime it falls further! But there is no rush, unless it pops quickly. DH
2011 second and third quarters
Revenue was $16.841b up 1.2% from 2q10 & 3q10 ($16.646b), ebitda $1143m up 7% from $1068m, profit $433m up 14.6% from $378m. In the last two reported quarters (as of Dec 1, 2011) Metro Inc experienced revenue, ebitda and profit are up 1.8%, down 2.9% and down 1.1% respectively while at Empire-Sobeys they are up 6.1%, 6.3% and 7.5%.
I have shopped at Superstore for a very long time now. They're one of the few chnias that makes a knock off of something that I find still tastes the same, or if it doesn't, tastes good enough that I don't miss the name brand. I love that they're so cheap, and I personally don't mind bagging my own groceries. I was happy to say goodbye to Safeway, but sad that Superstore doesn't have any loyalty programs. If they offered air miles rewards I think I could die happy. So, on the rare occasion I'm craving a Safeway sandwich I'll stop by, but for the most part a SS is approximately 12 minutes drive away.At the end of this month I'm moving to Calgary, and crazily enough I made sure my aunt looked at places for me near the Shaw building, as I know there's a superstore around there. The prices make it worth it, completely. I also bought lots of those black re-useable bags that they sell, and I have to say, they definitely are much bigger than they look, they hold up really well, and their handles are super comfortable. Never used one of those green plastic things though.
2011 first quarter
Earnings were strong up 23% in the quarter to $162-million, or 56¢ a share, compared with $132-million, or 45¢ a share the year before however revenue fell 0.6% to $6.9B (same store sales down 0.1% because of flat food sales and lower sales in drugstore, apparel and general merchandise. Net income was up 8.8% to $197m (lower income taxes & reduced net interest expense).
Gracias, Dennis. What a hoot to find myself in Tucson again, and on my olemeypr's tab, at a resort I couldn't have afforded when I lived here. Well, it's going to be a lot of work this week -- they didn't bring me here for my sparkling company -- but I'm stoked to be back.
Subsidiaries by ownership, area served, size
| corporate run | # stores | area served | size | corporate run | # stores | area served | size | franchised | # stores | area served | size |
| Provigo | 300+ | ont,que | large | RC Superstore | 110 | ont. | large | No Frills | 175 | 7 prov | midsize |
| Maxi | 108 | que,ont | 18large 90small | Loblaw Great Food | 77 | ont,que | large | Extra Foods | 78 | west | large |
| Zehrs | 43 | ontario 26cities | large | AtlSuperstore | 54 | Maritimes | large | Value-Mart | 62 | ont | midsize |
| T&T | 20 | bc,ont | small | Extra Foods | 78 | west | large | ||||
| Dominion | 12 | maritimes | small | Liquorstore | 34 | alberta | small | Freshmart | 54 | east | midsize |
| SuperValue | 22-30 | west | midsize | Wholesale Club | 34 | 24west 8ont,2atl | large | Independent Grocer | 52 | ont | midsize |
| SaveEasy | 48 | 36 nb,ns 12 nfl,pei | midsize | ||||||||
| Fortinos(1988) | 20 | ontario | midsize |
In terms of grocers, at the end of 2009 there were more than 800 corporately run stores and over 567 franchised locations (the corporately owned stores were as much as 2-3 times larger (on average) than those franchised). Product brands include presidents choice and no name (two most popular by sales in 2009/2010), Green, Blue Menu, Organics, PC Financial as well as its newest Joe Fresh Style which has become one of Canada's top 3 recognizable apparel brands. The recently acquired T&T Supermarket division (ethnic products) is important to the company's future growth since immigrants represent Canada's largest growing customer segment.
- Marketing the company continues to market itself on value much like Wal Mart; Zehrs campaigns under the slogan 3000 prices lowered, RC Superstore:prices rounded down, No Frills:Won't be Beat, Maxie & Cie:1000 Ways to Save
Competition
Provigo Canada's 3rd leading grocer in 1997 (when Loblaws sales were about $14 billion or about half what they were in 2006) was acquired by Loblaws in November 1998 for CAD $1.74 billion[9] (the subsidiary currently oversees 190 supermarkets and discount stores in Quebec and serves over 340 locations of other stores).
| Company | # of locations | Average Store Size (Square Feet) | # of Employees | Net Profit Margin (%) | locations added during year |
|---|---|---|---|---|---|
| Couche Tard[10] | 5878 (2010) | 2-2500 | 53,000 | 1.8 (2010)[11] | 435[12](2010 FY) |
| Metro inc. | 827 | 32,600-41,800 (351 grocery stores)[13] | 65,000 | 3.17[14] | na |
| Sobeys | 1300 | about 42,000[15] | 85,000 | 1.95[16] | na |
| A&P | 436 | 13,950[17] | 42,200 | (-)10.77[18] | na |
| Loblaws | 1400 | 29,700-62,300[3] | 139,000 | 2.13[19] | na |
Sobeys
Competition from Sobey's has been intensifying especially in Atlantic Canada and Ontario where Sobey's has diversified its brands to include IGA, Foodland, Thrifty Foods, Price Choppers (79 locations in Ontario), FreshCo (57 locations all opened in fiscal 2011 with plans to add even more in 2012) and Lawtons Drug Stores. FreshCo is Sobey's response to No Frills, a discount food chain advertising itself as a discount store with a strong fresh presence that appeals to ethnic customers (ethnic consumers are expected to represent 1 in 3 Canadians in 2031). FreshCo's popularity has made Sobey's eager to replace Price Choppers with it. In the province of Ontario (Canada) 35 to 40% of the grocery shopping is in the discount market making brands like No Frills invaluable to future growth. In the discount and ethnic market Loblaws' No Frills and T&T Supermarket also compete with Metro's Food Basics.[20] In addition to Superstore, Empire's 286 unit strong Sobeys brand also competes directly with Loblaws' corporately run banners Provigo (over 300 units, run by Loblaws since 1998), Maxi (108 units), Great Food (77 units) and Zehr's (43 units).
Other graphs
References
- ↑ 1.0 1.1 Canada food retailer to make purchases in Taiwan (August 6, 2011).
- ↑ 2003 annual information (2003).
- ↑ 3.0 3.1 Loblaws 2009 Annual Report (2010-03-12).
- ↑ Loblaw Companies 2011 Annual Report (February 2012).
- ↑ valuecruncher. Retrieved on 2010-08-06.
- ↑ Sobeys takes on Loblaws/Weston to court discount and ethnic (2010-05-19).
- ↑ How Sobey's is taking on Loblaws (2010-06-23).
- ↑ The secrets behind Canada's largest supermarket (March, April 2010).
- ↑ cases in strategic systems auditing (1999).
- ↑ Macs Couche Tard Annual and Quarterly Reports (2010).
- ↑ Couche Tard Financials (2010).
- ↑ Couche Tard Information from third party (2010).
- ↑ Metro Inc Annual and Quarterly Reports. Retrieved on 2010.
- ↑ Metro inc. Financials Third Party Source (2010).
- ↑ cranston celebrates grand opening of sobeys (2009-11-01).
- ↑ Sobeys 2009 Annual Report (2010-05-01).
- ↑ A&P stock information from Businessweek.
- ↑ A&P Financials supplied by third party (2010).
- ↑ Loblaws Financials Third Party Source. Retrieved on 2010.
- ↑ Sobeys takes on Loblaws/Weston to court discount and ethnic shoppers (2010-05-19).
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