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Loblaw boycott had ‘minor’ impact on sales, CEO Per Bank says
Global News
Loblaw's CEO on Thursday acknowledged a 'minor' impact to the grocer's sales in the second quarter amid a grassroots movement to boycott the company's stores.
The boycott of Loblaw stores in May had only a “minor” financial impact on Canada’s largest grocers, according to the company’s CEO.
Loblaw Co. Ltd. reported second-quarter earnings on Thursday, including the month of May, which saw the grocer targeted in a grassroots boycott campaign venting frustrations over rising grocery prices.
Loblaw CEO Per Bank was asked about the impact of the movement during an earnings call accompanying the earnings. He said “the overall financial impact was minor.”
Chief financial officer Richard Dufresne acknowledged that the boycott had “a bit of an impact in certain stores in specific markets.”
“That said, at the end of the quarter, things had returned to normal,” he said.
The company missed analysts’ revenue expectations for the quarter, with same-store food sales up just 0.2 per cent.
Dufresne attributed the softer-than-expected sales in part to the company lapping a much stronger growth quarter a year ago, when same-store food sales rose 6.2 per cent.
He also said the “extremely hot” temperatures in May 2023 fuelled a boom in the company’s outdoor and gardening segments, while a comparatively cold and rainy season this spring dampened sales here this past quarter.