Grocery sales levelling off
The Canadian Press - Jul 28, 2021 - Business Buzz

Photo: The Canadian Press

Canada’s biggest grocery store chain said renewed COVID-19 lockdowns this spring kept food sales strong despite signs that consumer behaviour may be shifting towards more familiar pre-pandemic patterns.

Loblaw Companies Ltd. said Wednesday its grocery sales dipped 0.1% in its latest quarter, almost matching the high point recorded during the same period the year before.

But in a sign of how consumer behaviour is expected to shift as the country emerges from lockdowns, the company said basket sizes—the amount of groceries customers buy at one time—edged down in its second quarter while traffic in its stores picked up. During the pandemic, Canadian grocers said customers tended to shop less frequently but stock up more with each visit.

Loblaw said it’s expecting shoppers to return to its discount stores as restrictions ease, something it started to see in the three months ended June 19.

The company operates conventional grocery stores like Loblaws, Zehrs and Provigo as well as a discount division that includes No Frills and Maxi. Many consumers turned to full-service stores during the pandemic as part of a one-stop-shopping trend to reduce trips outside the home.

“Our grocery divisions performed well in the first part of the quarter, aided by COVID restrictions that kept Canadians eating at home during the spring and early summer,” Loblaw chairman and president Galen G. Weston said during a conference call with analysts. He resumed the role of president in May following the retirement of Sarah Davis.

“As communities across the country began opening up, we were particularly pleased with the re-emergence of value-seeking shopping trips, which was good for our discount formats.”

Meanwhile, the company’s drugstore division, which includes Shoppers Drug Mart and Pharmaprix, recorded a virtually non-existent cough and cold season as public health measures aimed at curbing the spread of COVID-19 also reduced the spread of other viruses.

But the uptick in outdoor adventures as many indoor activities remained off limits provided a boost to the pharmacy’s allergy medication sales.


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