{"id":49729,"date":"2024-07-25T14:34:32","date_gmt":"2024-07-25T14:34:32","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2024\/07\/25\/loblaw-revenue-up-in-q2-despite-may-boycott-calls\/"},"modified":"2024-07-25T14:34:32","modified_gmt":"2024-07-25T14:34:32","slug":"loblaw-revenue-up-in-q2-despite-may-boycott-calls","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2024\/07\/25\/loblaw-revenue-up-in-q2-despite-may-boycott-calls\/","title":{"rendered":"Loblaw revenue up in Q2 despite May boycott calls"},"content":{"rendered":"<p> \n<\/p>\n<div id=\"\">\n<h2 class=\"visually-hidden\">Article content<\/h2>\n<p data-async=\"\">Loblaw Cos. Ltd. reported increased revenue and sales for the second quarter of 2024, indicating little impact from a month-long boycott of its stores in May.<\/p>\n<p>The grocery giant\u2019s revenue grew to $13.9 billion in the quarter ended June 15, a 1.5 per cent year-over-year increase. Its retail segment sales were up 1.4 per cent to almost $13.7 billion from the same period last year.<\/p>\n<\/div>\n<div id=\"\">\n<p>Article content<\/p>\n<p>Same-store food retail sales went up by 0.2 per cent to $9.65 million, while same-store drug-retail sales increased by 1.5 per cent to $4 million. It said its 5.4 per cent same-store sales growth in pharmacy and health-care services was partially offset by a decline in front-store same-store sales of 2.4 per cent. E-commerce sales increased by 14.2 per cent in the second quarter compared to last year.<\/p>\n<p data-async=\"\">\u201cFood retail sales reflected increased customer visits in the quarter, despite lapping very strong sales growth last year,\u201d the retailer said in a press release.<\/p>\n<p>The company\u2019s operating income declined 6.4 per cent to $868 million, including an 11.9 per cent dip in retail operating income to $815 million in the second quarter.<\/p>\n<p data-async=\"\">It attributed the decrease primarily to charges related to the settlement of bread price-fixing class actions commenced in 2017, which negatively affected net earnings by $121 million.<\/p>\n<p data-async=\"\">Loblaw and parent company George Weston Ltd., which owned wholesaler and distributor Weston Bakeries until 2021, on Thursday announced they had agreed to pay a settlement of $500 million in relation to the nationwide class-action suits. George Weston will pay $247.5 million in cash and Loblaw will pay $252.5 million in both cash and credit previously paid to customers under its loyalty card program.<\/p>\n<\/div>\n<div id=\"\">\n<p>Article content<\/p>\n<p>The companies had previously admitted their role in a multi-year scheme involving wholesale and retail competitors in the sale of fresh bread products. The companies received immunity from prosecution in exchange for co-operating.<\/p>\n<p>The alleged industry-wide co-ordinated price setting became public in 2017, and in early 2018, the Competition Bureau filed documents in court alleging that at least $1.50 had been artificially baked into the price of a loaf of bread between 2001 and 2016 as a result of the scheme.<\/p>\n<section aria-labelledby=\"moreTopicLabel6169489553858979647975473335500800\" class=\"more-topic\" data-aqa=\"embed-more-topic\" data-carousel-component=\"\" data-carousel-icon-button=\"\" data-carousel-type=\"list\">\n<p>Recommended from Editorial<\/p>\n<p><button aria-hidden=\"true\" class=\"more-topic__button-prev\" data-carousel-prev=\"\" tabindex=\"-1\" title=\"previous\" type=\"button\"\/><\/p>\n<ol class=\"more-topic__items list-unstyled\" data-carousel-slide-list=\"\" tabindex=\"0\">\n<li data-evt-val=\"{\" control_fields=\"\" george=\"\" weston=\"\" to=\"\" settle=\"\" bread=\"\" price-fixing=\"\" lawsuit=\"\" data-carousel-item=\"\" data-evt=\"click\" data-evt-typ=\"click\"> <picture class=\"more-topic__item-image\"><\/picture>\n<p><span class=\"more-topic__item-text-clamp\">Loblaw, George Weston to settle bread price-fixing lawsuit<\/span><\/p>\n<\/li>\n<li data-evt-val=\"{\" control_fields=\"\" faces=\"\" privacy=\"\" probe=\"\" over=\"\" pc=\"\" optimum=\"\" accounts=\"\" data-carousel-item=\"\" data-evt=\"click\" data-evt-typ=\"click\"> <picture class=\"more-topic__item-image\"><img decoding=\"async\" alt=\"A Loblaws grocery store is shown at a Bowmanville, Ont. shopping centre on Feb. 28, 2023. \" data-src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/07\/0725-bc-loblaw.jpg?h=96&amp;strip=all&amp;quality=80&amp;sig=nSfuWrQyoZ7pKSWN37rFMQ\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/07\/0725-bc-loblaw.jpg?h=96&amp;strip=all&amp;quality=5&amp;sig=C5LtoX3xHgY0azQrSwihMQ\" srcset=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/07\/0725-bc-loblaw.jpg?h=96&amp;strip=all&amp;quality=80&amp;sig=nSfuWrQyoZ7pKSWN37rFMQ, https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/07\/0725-bc-loblaw.jpg?h=192&amp;strip=all&amp;quality=80&amp;sig=AHYWjljQ-KwmXvU6M7sTAA 2x,&#10;                                             https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2024\/07\/0725-bc-loblaw.jpg?h=288&amp;strip=all&amp;quality=80&amp;sig=879wG5Lt_Fm0JHTorwUa2w 3x\" class=\"lazyload\" height=\"96\" loading=\"lazy\" width=\"96\"\/><\/picture>\n<p><span class=\"more-topic__item-text-clamp\">Loblaw faces privacy probe over PC Optimum accounts<\/span><\/p>\n<\/li>\n<\/ol>\n<p><button aria-hidden=\"true\" class=\"more-topic__button-next\" data-carousel-next=\"\" tabindex=\"-1\" title=\"next\" type=\"button\"\/><\/section>\n<p data-async=\"\">\u201cOn behalf of the Weston group of companies, we are sorry for the price-fixing behaviour we discovered and self-reported in 2015,\u201d Galen Weston, chief executive of George Weston and chairman of Loblaw, said in a press release. \u201cThis behaviour should never have happened.\u201d<\/p>\n<p data-async=\"\"><em>\u2022 Email: dpaglinawan@postmedia.com<\/em><\/p>\n<p data-async=\"\"><em><strong>Bookmark our website and support our journalism:<\/strong> Don\u2019t miss the business news you need to know \u2014 add financialpost.com to your bookmarks and sign up for our newsletters here.<\/em><\/p>\n<\/div>\n<div id=\"\">\n<p>Share this article in your social network<\/p>\n<\/div>\n\n<br \/>Loblaw revenue up in Q2 despite May boycott calls<\/a><br \/>\n<br \/>2024-07-25 14:34:32<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Article content Loblaw Cos. Ltd. reported increased revenue and sales for the second quarter of 2024, indicating little impact from a month-long boycott of its stores in May. The grocery&#8230;<\/p>\n","protected":false},"author":2,"featured_media":49730,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-49729","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy"],"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/49729","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=49729"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/49729\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/49730"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=49729"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=49729"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=49729"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}