Canada news

Costco’ new financial year saw a continuation of the strong results of the last year. We review its performance and how new ecommerce initiatives and its launch in China have contributed to its growth. Comparable club sales up 5.0% Costco’s Q1 net sales increased 5.6% to $36.2bn, with comparable club sales up 5.0%. Canada led the way with comparable club sales up 5.1%. Comparable ecommerce ...

We review Sobeys’ second quarter performance as it enters the final phase of its turnaround plan, Project Sunrise. More promotional marketplace Second quarter sales increased 3.6% to $6.4bn, with same-store sales up 2.0%. Sales growth was broad-based across its formats, with customer count and basket size up. The retailer also saw strong growth in operating income, up 65.2% to $286.4m, supp...

As the retailer announces plans to open 10 additional stores in Ontario over the next two years, we look at what makes this a powerful format for the retailer. Driving growth in urban locations Sobeys acquired Farm Boy last December in a deal designed to help Sobeys drive its penetration in urban locations. At the time, Ottawa-based Farm Boy operated 26 stores. It was a great acquisition fo...

Metro is selling its stake in the MissFresh meal kit business it acquired in 2017. Company being acquired by Cook it Founded in Montreal in 2015 by Marie-Eve Prevost, Bernard Prevost, and Ritter Huang, MissFresh is a Canadian meal kits company. Following the deal in 2017 MissFresh's three cofounders retained 30% of the capital and continued to take an active part in the company's management...

Longo's has partnered with Amsterdam Brewery to integrate a brewery into its new store in Liberty Village, Toronto. It offers customers a sip-and-shop experience whereby they can enjoy a beer or glass of wine whilst they shop. Source: Longo's Brothers Fruit Markets Inc Collaborating to meet changing retail needs Source: Longo's Brothers Fruit Markets Inc Source: Longo's...

We review Couche-Tard’s second quarter performance and the range of programmes and pilots underway which could underpin future growth for the Circle K operator. Strong Q2 performance Total Q2 merchandise and service revenue increased by 2.3% to $3.5bn, with same-store merchandise revenues up 3.3% in Europe, 3.2% in the US and 2.1% in Canada. Net earnings increased 22.3% to $578.6m. These re...

Alimentation Couche-Tard has submitted a AU$8.6bn (US$5.8bn) bid to purchase Caltex Australia. Caltex battling profit downturn The Alimentation Couche-Tard offer is subject to board approval and follows another offer that was made in early October and rejected. Caltex has been repurposing its business in Australia due to a significant downturn in profit margins and already plans to look to ...

Loblaw is extending the range of products that it offers online through the development of an online marketplace. Extended range and supplier partnerships Through this new marketplace, Loblaw will offer an extended range of brands and products across baby, toy, home, kitchen and pet categories. Although the retailer offers a broad general-merchandise offer through its hypermarkets, this wil...

Metro delivered a strong performance in Q4. We review the key drivers and its plans for the year ahead. Top-line results Metro’s fourth quarter sales increased 3.3% to $3.9bn. Food same-store sales increased by 4.1%, with pharmacy same-store sales up 3.4%. Net earnings increased 15.4% to $167.4m. For the full year, sales increased 16.6% to $16.8bn. Excluding the impact of the acquisition of...

The latest results from Walmart and Loblaw indicate a challenging time for non-food categories in Canada. We look at what this could mean for the future of the hypermarket in the country. Popular with Canadian shoppers Walmart and Loblaw account for almost all hypermarkets trading in Canada, over 500 stores in total. Offering a blend of food and non-food items, it has been a popular forma...