Wednesday, 16 October 2013

News: Loblaw to Cut 275 Jobs

Canada's largest grocer Loblaw Companies Limited announced today that it is shedding 275 jobs, about 200 of those from their Brampton head office. The job losses will be primarily managerial and administrative and the retailer promises little store level impact.

A year ago Loblaw announced 700 job cuts to its head office. Today's announcement furthers the company's goal of streamlining operations in the face of increased competition. Both Target and Walmart have been aggressively courting customers with expanded grocery offerings. Target plans to open up to 135 Canadian locations, all with grocery departments. Discount competitor Walmart earlier this year announced that it intends to open an additional 27 Supercentres in 2013 which include an expanded grocery section.

After the announcement, Loblaw stock ended the trading day up $1.08 at $47.09.

In July Loblaw confirmed it was acquiring Shoppers Drug Mart for $12.4 billion. That deal is expected to expand Loblaw's reach into urban markets and provide distribution opportunities for their private brand products. The merger is expected to generate significant cost savings.

Loblaw has approximately 134,000 full and part-time employees across the country and operates 22 banners in a mixture of corporately owned and franchised stores.