Are medical masks the biggest reason for one group of Burnaby stores seeing their profits continue to climb while others are struggling during COVID-19?
Earlier this year, Loblaw Companies Ltd. finally made it mandatory for customers at the Real Canadian Superstore – including the one at Metropolis at Metrotown – to wear masks while shopping.
Superstore, which is part of the same company as Shoppers Drug Mart, No Frills, and Your Independent Grocer, joined another Loblaw company, T&T, in having a mandatory mask policy.
Other Burnaby stores with such a policy include Walmart and Whole Foods. Meanwhile, other chains, including Nesters, Safeway and Save-on Foods, have not gone that step.
Some thought that could hurt the company as people who don’t want to wear masks could go to other chains.
That hasn’t happened according to the latest financial results.
If anything, it’s profits have increased. Perhps people feel more safe shopping there.
Loblaw Companies Ltd. raised its dividend as its third-quarter profit and sales climbed higher compared than a year ago and topped expectations.
The grocery and drug store retailer says it will now pay a quarterly dividend of 33.5 cents per share, up from 31.5 cents per share.
The increased payment came as Loblaw reported a profit attributable to common shareholders of $342 million or 96 cents per diluted share for the quarter ended Oct. 3, up from $331 million or 90 cents per diluted share in the same quarter last year.
Revenue for what was a 16-week period totalled $15.67 billion, up from nearly $14.66 billion in the same quarter a year earlier. Food retail same-store sales gained 6.9 per cent in the quarter, while drug retail same-store sales climbed 6.1 per cent.
On an adjusted basis, Loblaw says it earned $464 million or $1.30 per diluted share, up from an adjusted profit of $458 million or $1.25 per diluted share a year ago.
Analysts on average had expected an adjusted profit of $1.26 per share and $15.6 billion in revenue, according financial data firm Refinitiv.
- With files from Canadian Press
