The Globe and Mail reports in its Friday, July 31, edition that customers facing high food prices in Canada are increasingly skipping fresh produce and opting for frozen options to stretch their budgets, according to Loblaw chief executive officer Per Bank.
The Globe's Susan Krashinsky Robertson reports that shoppers are increasingly turning to discount stores, buying on promotion and opting for private-label products to save money. However, Loblaw has still observed shifts in buying patterns, according to Mr. Bank.
One example is a roughly 5-per-cent increase in sales of frozen vegetables at the company's No Frills and Maxi discount locations.
Loblaw, which is based in Brampton, Ont., is benefiting from market trends and expanding its store footprint to attract more customers. Loblaw plans to open 30 to 40 new discount stores this year, with half of the 14 new grocery and drugstore locations opening in the second quarter being discount formats.
"Customers are looking for more and more value, more and more discount," Mr. Bank said.
Same-store sales at Loblaw's grocery stores increased by 1.6 per cent. That was slower than the same time last year, when food same-store sales rose by 3.5 per cent.
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