Canada news

19 May 2015
As Walmart reports its first quarter results, we review its performance and the outlook going forward. The top line numbers Walmart's net sales decreased by 0.1% in the first quarter to $114.0bn, mainly as a result of a 6.6% decline in international sales which were impacted by foreign currency. Sales in its US stores and Sam's Club increased by 3.5% and 1.2% (ex-fuel) respectively, with U...
08 May 2015
Walmart Canada is to acquire 13 former Target Canada locations and a distribution centre to support its ongoing growth in the country. Walmart Canada investing almost $700m this year Walmart Canada is investing $165m in acquiring the sites, while a further $185m will be invested in their renovation, representing a total investment of $350m. Work on the stores is expected to start in the n...
06 May 2015
Whole Foods Market is to open a new store format offering a curated range of its products at value prices. Quick take: our view While the retailer has shared very few details on this format, at the top line it appears that it will be a smaller store concept, operating with a lower cost structure and lower prices, somewhat of a value with values approach. While Whole Foods Market stressed t...
27 April 2015
Co-op Atlantic has announced plans to divest its retail and fuel operations in Canada to Sobeys, subject to membership approval. Sobeys will be seeking to lift performance of under-performing stores Co-op Atlantic currently operates 173 outlets under a range of banners in Atlantic Canada, including company-owned and franchised operations. For Sobeys, the acquisition would complement its...
22 April 2015
As Metro Canada delivers a stronger set of results, we review the factors behind the improved performance. Higher inflation, traffic and volumes lift sales Metro’s second quarter sales increased by 6.0% to $2.7bn with same-store sales up 4.5%. The improvement, versus the previous quarter, was driven by a range of factors, including stronger inflation, with basket inflation at 4.0%. Metro ...
17 April 2015
Ontario has put in place  plans to enable grocery stores to sell beer. This provides retailers with an opportunity to grab share in a major category, which could also be an important traffic driver. First stores to be up and running by Christmas Beer sales in Ontario are currently driven almost exclusively through The Beer Store, which is owned by Molson Coors, Anheuser–Busch InBev and S...
14 April 2015
Loblaw and Uber have partnered in Toronto to offer shoppers free rides to users of the retailer’s click and collect service. Uber offers strong fit with Loblaw’s target customers The retailer launched its test of grocery ecommerce last October, the first stage of its plans to build a stronger presence in the channel. The initiative, which runs from April 14 to April 20, enables shoppers to...
13 April 2015
Target’s exit from the Canadian market and the reasons why have been documented, analysed and dissected since the news broke in early January. But with the clearance sales done and the shutters having come down for the final time, what will be the impact on the supermarket and hypermarket operators that remain? Walmart and Loblaw likely to be among the winners There are unlikely to be big...
09 April 2015
Reporting its fiscal year 2014 results, Group total sales grew ahead of plan at 6.6% to JPY 10.2tn (US$85.1 billion), only the convenience division hit its operating income target, resulting in more subdued growth of 1.1% to JPY 343bn (US$2.9 billion). Record positive performance for convenience Seven-Eleven Japan (SEJ) achieved operating income growth of 5% to JPY 223.3bn (US$1.86 billion)...
02 April 2015
Following a strategic review of the business, Greg Foran, President & CEO Walmart US, has outlined his priorities for developing the business. IGD view: quick take This update reinforces earlier statements from Greg Foran and represents something of a shift from being a purely cost focused organisation to one which is also service focused. However, this imply does not imply that Walmart i...