Loblaw builds on its success

Article Excerpt

Target’s exit from Canada means less competition for Loblaw, but the company still plans to aggressively expand and improve its stores. This year, it will spend $1.2 billion to build 50 new outlets, renovate 100 others, improve its online presence and further upgrade its warehousing and computer systems. This should keep the company’s sales and profits growing in the extremely competitive Canadian grocery market. LOBLAW COMPANIES $61.92 (Toronto symbol L; Shares outstanding: 412.5 million; Market cap: $25.6 billion; TSINetwork Rating: Above Average; Dividend yield: 1.6%; www.loblaw.ca) is Canada’s largest food retailer, with about 1,200 stores. Its banners include Loblaws, Provigo, Fortinos, Real Canadian Superstore and No Frills. George Weston Ltd. owns 46% of the company. In the three months ended January 3, 2015, Loblaw’s sales jumped 49.4%, to $11.4 billion from $7.6 billion a year earlier. The gain was mainly due to the 1,300-store Shoppers Drug Mart chain, which the company bought in March 2014. Same-store sales rose 3.3% at…