Loblaw is now a pure-play retailer

Article Excerpt

Loblaw recently transferred its majority stake in Choice Properties REIT to its parent company, George Weston. As a result of that reorganization, Loblaw can now focus exclusively on expanding profits for its main retailing operations. For example, the company recently launched a new enhanced delivery program modelled after the highly successful Amazon Prime service. Loblaw also continues to do a good job of attracting customers to the company’s PC Optimum rewards program. Those moves should help Loblaw maintain its high market share. What’s more, the stock is attractive in relation to the company’s overall earnings. LOBLAW COMPANIES LTD. $62 (Toronto symbol L; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 375.3 million; Market cap: $23.3 billion; Price-to-sales ratio: 0.5; Dividend yield: 1.9%; TSINetwork Rating: Above Average; www.loblaw.ca) is Canada’s largest food retailer with 1,082 supermarkets. Those stores operate under a variety of banners, including Loblaws, Zehrs, Provigo, Real Canadian Superstore and No Frills. In March 2014, the company purchased the Shoppers Drug Mart chain for $12.3 billion…

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