Metro revenue jumps 10.4% on meals, pharmacy gross sales amid excessive inflation

Metro Inc. is launching a brand new loyalty program that may give the grocery and drugstore retailer perception into buyer behaviour and procuring patterns.

The rewards program, known as Moi, will likely be launched subsequent month throughout its community of shops in Quebec, together with at Metro, Tremendous C, Première Moisson, Brunet and Jean Coutu, the corporate stated Wednesday.

“For patrons, it’s a possibility to get factors, lower your expenses, get focused promotions on what they purchase, what they like,” Metro CEO Eric La Flèche stated throughout a convention name with analysts to debate the corporate’s newest monetary outcomes.

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“It provides us and our vendor companions extra alternatives to focus on and be extra customized and have interaction extra with our prospects.”

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This system, which it calls an evolution of its metro&moi loyalty program, can even be supplied at Jean Coutu pharmacies in Ontario and New Brunswick, which can withdraw from the Air Miles program. Metro grocery shops in Ontario will proceed utilizing Air Miles.

The Royal Financial institution of Canada has joined Metro as a loyalty companion, providing a co-branded Moi-?RBC bank card, the corporate stated.

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The launch of Moi comes lower than a yr after Sobeys partnered with Scotiabank and Cineplex on the Scene Plus loyalty program, dropping Air Miles from its shops.

Retailers are more and more launching in-house rewards packages in an effort to spice up client loyalty via varied perks and rewards, a technique that seems to be working with budget-conscious buyers amid excessive inflation.

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In February, Loblaw Firms Ltd. famous that prospects have been utilizing the corporate’s PC Optimum program extra actively, with a rise within the redemption of factors to purchase groceries.

Metro’s newest monetary outcomes confirmed Canadian customers are persevering with to hunt for offers on groceries amid excessive inflation, La Flèche stated.

Clients shopped extra regularly, switched to low cost shops, purchased the corporate’s in-house manufacturers and more and more opted on the market gadgets throughout Metro’s second quarter, he stated.

“Promotional penetration stays very excessive as customers seek for worth,” La Flèche stated. “Visitors was up whereas the common basket dimension got here down barely.”

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Gross sales of Metro’s private-label manufacturers — corresponding to Irresistibles, Choice and Life Sensible — grew at double the speed of total gross sales progress, he stated.

The feedback got here as Metro stated its earnings rose 10.4 per cent to $218.8 million in its newest quarter, up from $198.1 million in the identical quarter final yr.

The revenue amounted to 93 cents per diluted share for the 12-week interval ended March 11, up from 82 cents per diluted share a yr earlier, the corporate stated.

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Gross sales in what was the corporate’s second quarter totalled $4.55 billion, up 6.6 per cent from $4.27 billion in the identical quarter final yr.

The rise in gross sales got here as meals same-store gross sales rose 5.8 per cent in contrast with a yr earlier, whereas pharmacy same-store gross sales gained 7.3 per cent.

On an adjusted foundation, Metro stated it earned 96 cents per diluted share, up from 84 cents per diluted share a yr earlier. Analysts on common had anticipated an adjusted revenue of 94 cents per share, based on monetary markets knowledge agency Refinitiv.

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