METRO CANADA GETS BOOST FROM FRESH
As Metro delivers a strong third quarter we look at what’s driving its performance.
Stronger food basket inflation
Total sales at Metro increased 6.1% to $3.8bn, with same-store sales up 4.3%. Net earnings increased 13.1% to $163.5m. This performance represents a continuation of the sales and profit trends recorded in the first half, with strong sales achieved in fresh foods, although food basket inflation of 3.5% was also an important contributor to growth. While inflation levels are falling, particularly in fresh, the retailer is starting to see some pick up in the centre store.
The investments which the retailer has been making in its store network have also been an important driver of growth. All of Metro’s banners across Quebec and Ontario delivered solid results in the quarter, with 17 stores remodeled to date this year. The retailer plans to continue ramping up its capital expenditure, up to an annual run rate of around $300m, placing an increased focus on its stores in Ontario moving forward.
Partnerships and acquisitions
The retailer saw higher traffic, volume and basket growth in the quarter, along with improved customer satisfaction metrics. The retailer also continues to build on its partnerships and acquisitions, including expanding the Marche Adonis network, now up to nine stores, and testing a range of Premiere Moisson concepts.