Empire CEO fires back at critics who suggest Canada\u0027s big grocers are exploiting their market power to profit from inflation. Read on
The scrutiny was being stoked by “a handful of politicians, media sources and think-tanks — not because we are struggling, but for being too successful in this difficult environment of high inflation,” Medline told shareholders. “I guess it makes for easy headlines and ignores what is truly driving our success,” he added. “I refuse to apologize for our success.”Article content
Empire has previously said its margin and earnings are getting better, in part, because of its three-year Project Horizon strategy to expand its FreshCo and Farm Boy brands, while using e-commerce and analytics to drive profit growth. In an earnings update before the annual meeting, Empire reported that profits actually dipped slightly in its first quarter, despite a boost in sales.
Sales in the quarter ended Aug. 6 increased 4.1 per cent compared with the same period last year. The jump came from higher food and fuel sales, which were influenced by this year’s surge in commodity prices, as well as its expansion of FreshCo in Western Canada, the company said. Discount stores such as FreshCo have been siphoning sales away from more conventional grocers this year, because more shoppers are seeking bargains as household food bills climb higher and higher. In its latestAdvertisement 6But Empire’s profit was $187.5 million, down $1 million or 0.5 per cent compared to last year. Earnings per share was 71 cents in the quarter, below forecasts of 74 cents, but one cent higher than the previous year.
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