Loblaw sales, profits up in Q3 as shoppers seek savings at discount grocers

Loblaw is seeing more sales at its discount grocery stores such as No Frills rather than at its full-priced stores.

Loblaw Companies Ltd. L-T reported increased sales and profits in the third quarter, as shoppers still stinging from high food inflation in recent years visited its discount grocery stores looking for savings.

Canada’s largest grocer reported on Wednesday that its revenue grew by 4.6 per cent to $19.4-billion in the quarter ended Oct. 4.

Discount stores such as No Frills, Maxi and Real Canadian Superstore continued to outperform the company’s full-price grocery stores. Loblaw has been expanding its offerings in that space, opening 19 new discount stores in the quarter.

The number of visits to Loblaw stores grew, as did the size of shoppers’ purchases during each visit.