Loblaw boycott had 'minor' impact as company says lawsuit settlement hit profits

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Belgique Dernières Nouvelles,Belgique Actualités

Loblaw said a boycott of its stores during its latest quarter had a minimal impact, as the company attributed lower profits to a settlement over an alleged bread price-fixing scheme.

"The overall financial impact was minor," president and CEO Per Bank said of the boycott on a conference call with analysts to discuss the company's second-quarter earnings.Loblaw saw its profit decline 10 per cent year-over-year to $457 million, which it attributed primarily to the settlement of a pair of class-action lawsuits, to the tune of $500 million between it and parent company George Weston Ltd.

“Our sales in grocery were a little soft, mostly based on last year’s strong performance of 6.1 per cent growth,” said Bank.RBC analyst Irene Nattel asked for more details, saying the food same-store sales number was “weaker than most of us expected.” An untold number of shoppers said they would boycott Loblaw-owned stores in May, with some calling for the action to continue indefinitely, to protest high food prices. Bank and Loblaw chairman Galen Weston previously pushed back on what they called"misguided criticism" of the company.

 

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Belgique Dernières Nouvelles, Belgique Actualités

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