Canadian grocery chain Loblaws reported an increase in revenue and sales in Q1 2024, but the company is facing trouble in the form of consumer boycotts over claims of high grocery prices.
The Reddit community "Loblaws Is Out of Control" initiated the Loblaw boycott at the beginning of May 2024 to protest the “outrageous costs of groceries seen in its stores.” Thousands of people across Canada have expressed anger over questionable discounts offered by the chain, as well as ongoing shrinkflation and other practices, according to blogTO.
However, Loblaw President and CEO Per Bank said in a press release that the Brampton, Ontario-based retailer, which operates 2,455 Loblaws stores in Canada, “continued to deliver value, quality, and service across our various banners, which led to more customers choosing our stores."
“Our dedicated colleagues, strategic plan, and unique assets position us well to best serve the needs of Canadians today and in the future,” he said.
At the same time, Bank said that he sees customers trying to mitigate inflation by seeking out sales, buying more private-label products and shopping at discount stores, The Canadian Press reported. As a result, Loblaws has begun new promotional campaigns and is expanding its discounts to more products, Bank said.
If customers aren’t happy, “that’s something I want to fix,” Bank said, adding that, if one customer really dislikes Loblaws, “that’s one too many.”
Despite the controversy, Loblaws' revenue jumped 4.5 percent to nearly CAD 13.6 million (USD 9.9 million, EUR 9.2 million) in Q1 2024, while same-store food sales grew 3.4 percent and e-commerce sales shot up 16 percent.
The company’s adjusted EBITDA rose 6.6 percent to CAD 1.5 million (USD 1.1 million, EUR 1 million), and diluted net earnings per common share spiked 14 percent to CAD 1.47 (USD 1.07, EUR 1.00).
