Financial results from CanadaB次元官网网址檚 three largest grocers offered a clearer picture of how the COVID-19 crisis has shaped shopping habits B次元官网网址� and how consumers respond when public health restrictions are eased.
Metro Inc.B次元官网网址檚 third-quarter earnings, reported Wednesday, largely mirrored results posted earlier this summer by competitors Empire Co. Ltd. and Loblaw Companies Ltd.
At the onset of the pandemic, all three saw sales soar as shoppers stockpiled everything prompting shortages of things like flour and toilet paper. Many Canadians also opted for conventional full-service grocery stores rather than discount supermarkets and bought more items per visit as part of a one-stop-shop effort to reduce their grocery trips.
But the opposite trend is now emerging as the vaccine rollout continues and COVID-19 infections drop.
Metro, Loblaw and Empire all noted an increase in traffic in their stores in recent quarters, but smaller basket sizes and more muted sales, an indication that people are shopping around more and potentially spending more at restaurants.
They also noted a gradual return to discount grocery stores as an increasing number of shoppers sought out promotions over simply convenience.
B次元官网网址淐onsumers are shopping around a little more with the easing of restrictions,B次元官网网址� Metro president and CEO Eric La Fl猫che said during a conference call.
B次元官网网址淲eB次元官网网址檙e seeing a gradual shift to more normal pre-pandemic behaviour,B次元官网网址� he said. B次元官网网址淭he discount channel in general is benefiting from that versus conventional (stores), which had a big uplift during the pandemic.
The Montreal-based grocery and drugstore retailer, which operates under numerous banners including Metro, Super C and Food Basics, said Wednesday its food same-store sales were down 3.6 per cent in its third quarter compared with last year.
Empire, which owns Sobeys, Safeway and FreshCo, reported similar results in June, noting its same-store sales slid 4.5 per cent while Loblaw, behind store chains like Zehrs, Provigo and No Frills, said its food same-store sales declined 0.1 per cent.
La Fl猫che with Metro said he expects food sales will remain soft this fall.
B次元官网网址淲hile we canB次元官网网址檛 predict exactly how the pandemic will evolve, we expect our food sales to decline in (the fourth quarter) versus last yearB次元官网网址檚 high levels, but to compare favourably to fiscal 2019,B次元官网网址� he said.
But Metro hopes to make up some ground through its drugstore division, which includes Jean Coutu and Brunet.
B次元官网网址淲e expect continued growth from prescriptions,B次元官网网址� La Fl猫che said. B次元官网网址淭he easing of restrictions will have a positive impact on certain categories that were negatively affected by the pandemic such as beauty, cosmetics, and cold and flu products.B次元官网网址�
Meanwhile, the grocer is also expecting to see some inflationary pressure from the higher cost of goods, transportation and labour.
B次元官网网址淚 would expect some inflation to be reflected at retail in a more pronounced way this fall,B次元官网网址� La Fl猫che said. B次元官网网址淏ut we will have to wait and see. We fully intend to remain competitive.B次元官网网址�
Metro said it earned $252.4 million in its latest quarter, down from $263.5 million the year before.
The company said its profit amounted to $1.03 per diluted share for the 16-week period ended July 3, down from $1.04 per diluted share a year ago.
Sales in what was the companyB次元官网网址檚 third quarter were $5.72 billion, down from $5.84 billion last year.
COVID-19 related expenses for the quarter totalled $38 million compared with $107 million in the same quarter last year.
B次元官网网址擝rett Bundale, The Canadian Press
