Loblaw profits fall 19 per cent

Despite making modest sales gains in its second quarter, Loblaw Cos. Ltd. saw its profits tumble by 19 per cent compared to the same period last year. The Globe and Mail reports that earnings dipped to $159 million or 57 cents a share, from $197 million or 70 cents a share a year earlier. And although sales were up by about 1.3 per cent, they came in lower than analysts expected. The story behind the numbers: the grocery chain has been trying to revamp its technology and supply chain systems, and that’s taken a bite out of profits. Loblaw needs to update these systems if it wants to compete with Walmart Canada Corp, which has been shoring up its food selection in earnest in Canada. This is all part of the company’s larger turnaround efforts, which have been going on since 2006, when Galen G. Weston took over as executive chairman. [Globe and Mail]