At the start of its second quarter,
The quarter was marked by inconsistent buying patterns, she said.
"The quarter ended with the gradual easing of restrictions and the general sense that we were establishing a new normal," said Davis. "We fared well with strong underlying performance in the face of unexpected challenges."
Loblaw's revenue for the three months ended
Davis called that "substantial, but uneven" with inconsistent growth in its food business and negative pressure on its drug business.
At the company's food stores, same-store sales — a key retail metric — increased 10 per cent. During the quarter, demand shifted to its conventional store formats with the market division's same-store sales increasing 18.8 per cent, while the discount division gained 4.9 per cent.
"We are already seeing the start of a return to discount," noted Davis, "and we expect that to quicken if the economy tightens in any meaningful way."
Same-store sales at Loblaw's drug division, meanwhile, declined 1.1 per cent. Front-store sales grew 3.3 per cent, while pharmacy sales fell 6.2 per cent.
The company also saw increased costs related to the COVID-19 pandemic.
It spent an estimated
Loblaw, along with competitors
When asked if she expects to be called to answer more questions, Davis said she doesn't expect that.
"They asked their questions. We answered them. And, as far as I'm concerned, it's done," she said, adding "anything is possible."
She said she has had no interactions with regulators as a result of the hearing.
The grocer is continuing to see costs related to COVID-19 with about
These costs are "down significantly" from the roughly
"We expect this to drive improved profitability," he wrote.
Loblaw also experienced a surge in demand for its e-commerce options so far during the pandemic, which created additional costs.
The company's e-commerce business grew 280 per cent in the quarter, Davis said. So far this year, Loblaw has totalled
"We are on a run rate of sales that we did not expect for years."
The company scaled its program, including adding several micro-fulfilment centres, adding costs that were expected to come later.
"This creates a short-term headwind with long-term promise."
Earnings attributable to shareholders fell 41 per cent to
Excluding one-time items, adjusted profits were
Loblaw was expected to report
This report by
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