Loblaw Looks To Boost Operating Income By Closing 52 Stores

Loblaw Companies Ltd. will close 52 unprofitable stores over the next year as it prepares to sacrifice sales for a better bottom line after its 2014 takeover of Shoppers Drug Mart.

The country’s largest grocer said on Thursday the shutdown of an array of its stores, including supermarkets, pharmacies, standalone Joe Fresh clothing outlets, and gas bars, is expected to cut its sales by about $300-million but add $35-million to $40-million to its operating income annually.

Despite the closings, the company still expects to bolster its overall store network in the coming year, Galen G. Weston, president and executive chairman, said in an analyst conference call.

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