The company says it faced a 7.7 per cent increase in operating expenses in its latest quarter, including about two per cent for employee retention measures.
But chief executive
"I'm cautiously optimistic the worst is behind us, and I'm pleased that as we face these labour and supply chain obstacles head-on, we continue to deliver a solid quarter and kept on track with our strategic goals," he said Wednesday during a conference call with analysts about its second-quarter results.
The convenience store industry is less impacted than other retail because it has fewer overseas imports, but Hannasch said it is receiving less product selection as manufacturers faced with ingredient shortages focus on bestsellers.
The situation is more acute in some markets with parts of the
He said same-store sales were impacted in the quarter, but other retailers faced similar or worse challenges.
"So net-net, we think we've left sales on the table, but again, as the vaccination rates continue to rise, we're seeing more stability with many of our key supplier partners and are cautiously optimistic that the worst of that situation is behind us today."
Hannasch said very few of its stores were forced to reduce hours of operation because of labour shortages.
"No doubt, this is the most difficult labour market, and we've been working hard to mitigate it. What we found is there's not a silver bullet."
He said the company is taking a comprehensive approach on hiring and retention issues, including offering bonuses. It hired 20,000 employees over the summer as it speeded up the hiring process.
"I don't think we're unique there. I think that's affected really all retail. And quite honestly, I expect more to come," Hannasch said about price increases.
"I believe that we're remaining competitive on a relative basis. We strive to continue to provide our customers value through smart multipack pricing, offering different assortments and working with our vendors on private label and other exclusive innovative values ideally leverage our scale."
Meanwhile, the retailer's class B shares are set to be delisted on
The increased payment to shareholders came as it reported it a second-quarter profit of
Adjusted profits were
Reporting in
On the
This report by
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