Loblaw closing 52 stores
Loblaw closing 52 stores
Loblaw Cos. plans to close 52 stores over the next 12 months. The announcement was made as part of its second quarter financial results.
On an annual basis, the closures will decrease sales by approximately $230 million but will result in a favorable impact to operating income of approximately $27 million to $31 million.
The company reported net earnings of roughly $142 million for Q2, including a $34.5 million charge as part of the restructuring plan, and it said sales were up 2.2 percent over the second quarter of 2014.
"I am pleased with our overall performance in the second quarter, as we continued to execute well against our strategic framework," said Galen G. Weston, president and executive chairman of Loblaw Cos. Ltd. "Looking ahead, the grocery industry remains highly competitive and healthcare reform continues to put pressure on our pharmacy business. We are well positioned to achieve earnings growth through a stable trading platform, incremental efficiencies, synergies and a stronger balance sheet."