February 26, 2024

Metro and Tremendous-C grocery store clients managed to beat meals inflation this summer time, says the Quebec retailer’s huge boss.

• Additionally learn: Stabilizing meals costs: The bosses of main grocery shops arrive in Ottawa dejected

• Additionally learn: Metro earnings rise greater than 26%

“Individuals adapt their habits. They purchase cheaper groceries, they purchase non-public label merchandise, they purchase on gross sales. All of which means that the actual inflation we’re experiencing is decrease than revealed inflation [par Statistique Canada]which is equal to that of a static basket,” Metro CEO Eric Richer advised La Flèche on Wednesday throughout an interview with Le Journal.

Metro estimates that “inside inflation” (the rise within the worth of merchandise bought this summer time in comparison with merchandise bought final summer time) was about 5.5% in July, August and September, in comparison with 7.1% for Statistics Canada’s calculated meals inflation.

Market share features

Nonetheless, this didn’t cease Metro from rising gross sales at its “comparable” supermarkets (these open for no less than a yr) by 6.8% year-on-year. As a proof for this progress, the corporate significantly cites the truth that it has gained market share.

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Together with on-line gross sales in addition to new grocery store and pharmaceutical sector gross sales (Jean Coutu and Brunet), Metro’s quarterly income elevated 14% to over $5 billion. Internet earnings rose 32% to $222 million – a rise partly resulting from an uncommon loss final yr.

Within the pharmaceutical sector, “comparable” gross sales elevated by 5.5%.

For the total fiscal yr, Metro posted internet earnings of greater than $1 billion on income of $20.7 billion.

Inventory decline

Regardless of these sturdy outcomes, Metro shares fell greater than 6% on the Toronto Inventory Trade on Wednesday. The corporate mentioned its earnings will probably be flat in 2023-2024, primarily resulting from prices associated to the commissioning of a brand new automated warehouse in Terrebonne in September.

For its half, the large Loblaw, proprietor of the Maxi and Provigo chains, mentioned on Wednesday that it had a internet revenue of $621 million, up 12%, on quarterly gross sales of $18.3 billion, up of 5 %.

Like Metro, Loblaw asserted that its “inside inflation” within the meals sector was decrease than the 7.1% measured by Statistics Canada, though it didn’t quantify it.

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