n n n ‘. concat(e. i18n. t(“search. voice. recognition_retry”),’n
Loblaw’s CFO Comments on Food Inflation
BRAMPTON, ON, March 21, 2024 /PRNewswire/ — As recent inflation figures in Canada continue to show momentum, Richard Dufresne, Chief Financial Officer of Loblaw Companies Limited (TSX: L) (“Loblaw”), comments on the trends shaping food. Costs in Canada:
“According to the most recent data, inflation in Canada eased again to 2. 8 per cent in February. Notably, food inflation (bought in stores) now stands at 2. 4%, its lowest point since July 2021, and the first time it has been below headline inflation since October 2021. For Canadians who continue to face an extremely upward pace of life, this is news, and there are signs of continued moderation in the coming months.
Figure 1. The expansion of retail food prices slows according to the Consumer Price Index (CPI)
After four decades of average food inflation rates of around 3%, over the past two years, food value inflation has averaged just around 9%, degrees seen in a generation. In recent years, a confluence of global forces has been at work, leading to higher global prices and, in some cases, limited products. These are accompanied by geopolitical instability in Europe, supply chain disruptions due to COVID, extreme weather events (especially in key regions of expansion), labor challenges, higher energy costs, and in particular, Canadian values, the weakness of the Canadian dollar relative to the United States.
We are starting to see origin chains recover, with a stabilization (and in some cases relief) of raw material value and shipping prices starting to return to pre-pandemic levels, key drivers of the overall value of food. Food price increases at suppliers are starting to slow, and while some proposed increases remain above inflation, the discounts are encouraging.
An attractive example is margarine, whose prices were lower last month than in January. In this example, vegetable oil prices have retreated from their peaks and we have noted favorable harvest situations for soybeans in South America. Through our labels, we’ve passed on those savings. to customers.
For our part, Loblaw’s continued efforts to reduce food costs continue to provide advantages to Canadians. Our domestic inflation rate in February was particularly lower than food CPI inflation. Examples of these charts include:
Optimize the company’s store network to include more discounted outlets, open 31 new Maxi and No Frills outlets in the next year, and plan to open at least 40 more in 2024. These outlets save consumers approximately 15% compared to traditional grocery retail. outlets, and will be successful in another 1. 8 million Canadians
We’re introducing new promotions and adding the innovative Hit of the Month campaign, which offers competitive pricing on key products across the company’s store network.
Offering deeper discounts on 35 items, ensuring that the products that matter most to Canadians are sourced at an average of around 30% off normal prices.
As a company, our goal is to help Canadians live well, and making smart food more affordable and available is one of the most important tactics we use to do that. We’re putting every pillar of our efforts into action: reducing prices, expanding points offerings, and making significant adjustments to our business to help consumers save money in our stores. “
About Loblaw Companies Limited
Loblaw is Canada’s leading food and pharmaceutical company and the country’s largest retailer. Loblaw supplies Canadians with food, pharmaceuticals, fitness and good looks products, apparel, general merchandise, money services, and wireless mobile phone products and services. With more than 2,500 franchisees and associates in its owned facilities, Loblaw, its franchisees and owner partners employ more than 220,000 full- and part-time employees, making it one of Canada’s largest personal sector employers.
Loblaw’s goal – Living Life Well® – prioritizes the desires and well-being of Canadians who make one billion transactions each year at the company’s retail outlets. Loblaw must fulfill and exceed those desires in a number of ways: convenient locations; more than 1,100 food outlets covering a wide range of values, from reduction to specialty; full-service pharmacies at approximately 1,400 Shoppers Drug Mart® and Pharmaprix® retail outlets and approximately 500 Loblaw retail outlets; PC Financial® Services; Joe Fresh Fashion & Family® Wear; and 4 of Canada’s biggest customer brands: Life Brand®, Farmer’s MarketTM, no name® and President’s Choice®. For more information, visit Loblaw’s online page in www. loblaw. ca and Loblaw’s issuer profile in www. sedarplus. ca.
SOURCE Loblaw Companies Limited – Public Relations
Watch the content to download media: http://www. newswire. ca/en/releases/archive/March2024/21/c3801. html