I know it's a hot button topic and I should probably not comment due to my financial conflict of interest in this discussion, but food inflation is the same or worse in every country. Our food inflation is the same as the US and it's much higher in Europe and elsewhere. Loblaws food margins peaked in 2021 and have fallen since then, and most of the increase in profit is due to SDM outperforming in sales and pharmacy services, which will be mostly a one time thing. Typical in store food margins are very slim, but cosmetics for example is 40% plus. It only takes a small increase in cosmetic sales to offset and margin loss in food if the size of the business is substantial or not
|