Loblaw Cos. Ltd., Canada\’s largest grocery chain, reported that its fourth quarter profits beat expectations despite the impact of its price freeze. Loblaw\’s suppliers and rivals argued that the price freeze was just a meaningless marketing ploy, but Loblaw\’s President Galen Weston said it saved customers a lot of money. Loblaw\’s revenues jumped 9.7 percent in the fourth quarter, with $9.5 billion in food sales. Gross profit margin dropped by 30 basis points to 30.6 percent due to the price freeze and increased commitment to promotional markdowns. Loblaw has been summoned to appear before a House of Commons inquiry into allegations of profiteering in the food business, but has so far snubbed the invitation. Follow me on Facebook to stay informed about the latest news in the retail and marketing industry.
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