Vancouver Off-Topic / Current Events The off-topic forum for Vancouver, funnies, non-auto centered discussions, WORK SAFE. While the rules are more relaxed here, there are still rules. Please refer to sticky thread in this forum. |  | |
07-24-2009, 07:50 AM
|
#1 | OMGWTFBBQ is a common word I say everyday
Join Date: Apr 2001
Posts: 5,105
Thanked 2,651 Times in 1,193 Posts
Failed 81 Times in 54 Posts
| Loblaws buys T&T
From today's Globe and Mail:
-------------------------------------------------- Loblaw buys Asian grocery chain
Marina Strauss
Globe and Mail Update
Last updated on Friday, Jul. 24, 2009 10:02AM EDT
Loblaw Cos. Ltd. (L-T35.36-0.39-1.09%) is buying Canada's biggest Asian food retailer for $225-million, allowing the grocer to extend its offerings to what it says is the country's largest growing customer segment.
Loblaw said Friday T&T Supermarket Inc., which runs 17 stores in British Columbia, Alberta and Ontario, will operate as a separate division.
“Some of our customers have a nickname for us – The Asian Loblaw,” Cindy Lee, chief executive officer of T&T , said in a statement.
The move came as Loblaw, the country's largest grocer, said that its second-quarter profit rose almost 38 per cent to $193-million or 70 cents a share from $140-million or 51 cents a share a year earlier. Sales rose 2.8 per cent to $7.2-billion from $7-billion.
But Loblaw executive chairman Galen G. Weston also warned that the second half of the year will be tougher for the company – and profit and sale will probably be “significantly challenged.”
“This quarter's improvement in earnings was largely cost and gross margin driven,” Mr. Weston said. “This is a trend that we do not expect to continue. We have consistently said that the second half of this year would be by far the toughest, and with market volumes in decline, inflation dropping off, intensified competitive activity and a substantial ramp up in our infrastructure and renovation programs, we expect sales and margins to be significantly challenged.”
The company's latest results were helped by increased food prices, although the chain's internal food inflation rate dropped from the first quarter. And while the retailer's food and drug-store sales were strong, its private label Joe Fresh Style apparel business saw just “modest growth” while other non-food merchandise sales continued to drop.
Loblaw beat analysts' second-quarter forecast of a profit of 56 cents a share, helped by strong gross profit margins and a low tax rate. However, sales didn't meet analysts target of $7.32-billion, according to a ThomsonOne Analytics survey.
“All in all it's a good quarter,” said David Hartley, managing director of equity research at BMO Nesbitt Burns.
The T&T acquisition is expected to boost Loblaw's bid to expand into the burgeoning ethnic food market, Mr. Hartley added. “To be there is very important and it's getting bigger every day.”
Loblaw has been bolstering its ethnic food offerings at its discount No Frills supermarkets over the past several years, and is now adding No Frills stores in Western Canada. The stores cater to ethnic consumers with an emphasis on fresh produce such as karela and okra.
Now, Mr. Weston said, the T&T takeover will be used “to help Loblaw extend its ethnic offerings to better serve Canada's largest growing customer segment.”
Loblaw looks forward to “continued growth and effectively serving Asian food to even more families across Canada,” said Ms. Lee, T&T's CEO.
Loblaw is targeting a market whose households spend up to 23 per cent more on groceries than others in Canada, according to data last year.
They are members of the fast-growing South Asian and Chinese Canadian communities, and they account for about one-third – or $5.7-million – of grocery spending in Toronto and Vancouver, a study last year by market researcher Solutions Research Group found.
It found that South Asian Canadians spend $154 a week on their groceries, or 23 per cent more than an average household in Toronto and Vancouver.
Loblaw's No Frills has copied elements of T&T of Richmond, B.C., which is considered a westernized version of Chinatown shops carrying live crabs and barbecued duck in bright, wide-aisled stores.
More recently, T&T started to branch out to South Asian goods, such as coconut milk and instant fried noodles with chili.
Loblaw said that it expects the T&T deal to close before the end of its fiscal year, and that it will add to its bottom line in the first year after the closing.
It said $191-million of the $225-million purchase price will be paid in cash and the rest through preferred shares issued by T&T, the value of which will be tied to the latter's future performance.
Loblaw also said it is making progress in its turnaround efforts after faltering a few years ago in a botched restructuring. Mr. Weston took the helm then, aided by Allan Leighton, a British businessman and long time adviser to the Weston family, which controls the grocer.
More to come.
-------------------------------------------------
|
| |
07-24-2009, 08:12 AM
|
#2 | Willing to sell a family member for a few minutes on RS
Join Date: Feb 2005 Location: Surrey
Posts: 12,760
Thanked 689 Times in 376 Posts
Failed 61 Times in 38 Posts
|
cool
|
| |
07-24-2009, 08:14 AM
|
#3 | Proud to be called a RS Regular!
Join Date: Oct 2008 Location: van
Posts: 131
Thanked 5 Times in 4 Posts
Failed 13 Times in 5 Posts
|
great..so it's not Taiwanese owned anymore
|
| |
07-24-2009, 08:34 AM
|
#4 | "Entertainment" mod.
Join Date: Feb 2009 Location: Surrey, BC
Posts: 5,124
Thanked 3,465 Times in 1,056 Posts
Failed 161 Times in 60 Posts
|
Hope that this doesn't take away from T&T's product line.
__________________
Green OJ Special
|
| |
07-24-2009, 08:38 AM
|
#5 | OWNER/C.F.O./MONEYMAN
Join Date: Mar 2001 Location: Vancouver
Posts: 16,486
Thanked 2,253 Times in 626 Posts
Failed 6 Times in 3 Posts
|
this might give t&t more buying power
what does that mean? lower costs making for higher profit margins =)
|
| |
07-24-2009, 08:44 AM
|
#6 | I answer every Emotion with an emoticon
Join Date: Sep 2002
Posts: 7,655
Thanked 443 Times in 188 Posts
Failed 83 Times in 34 Posts
|
Seems like a good move
__________________ Quote:
Originally Posted by MajinHurricane who would ban me? lol. Look at my post count. | |
| |
07-24-2009, 09:00 AM
|
#7 | RS Operative (G)
Join Date: Oct 2007 Location: GYM
Posts: 12,643
Thanked 4,573 Times in 1,531 Posts
Failed 406 Times in 127 Posts
|
good to see
__________________
╔╦╦╦═╦╗╔═╦═╦══╦═╗
║║║║╩╣╚╣═╣║║║║║╩╣
╚══╩═╩═╩═╩═╩╩╩╩═╝
|
| |
07-24-2009, 09:24 AM
|
#8 | OMGWTFBBQ is a common word I say everyday
Join Date: Nov 2005 Location: Vancouver
Posts: 5,146
Thanked 160 Times in 74 Posts
Failed 57 Times in 18 Posts
|
Does this mean T&T will no longer sell expired products as "sale" items?
__________________ Quote:
Originally Posted by Fei-Ji haha i can taste the cum in my mouth | There is a time when you have to sig a post.
It just happened.
|
| |
07-24-2009, 09:26 AM
|
#9 | Say NO to blade grinders!
Join Date: Apr 2001 Location: Vancouver
Posts: 8,083
Thanked 1,256 Times in 580 Posts
Failed 67 Times in 49 Posts
| Quote:
Originally Posted by wouwou Does this mean T&T will no longer sell expired products as "sale" items? | lol, isnt that what the clearance bin at superstore is for haha
|
| |
07-24-2009, 09:36 AM
|
#10 | "Entertainment" mod.
Join Date: Feb 2009 Location: Surrey, BC
Posts: 5,124
Thanked 3,465 Times in 1,056 Posts
Failed 161 Times in 60 Posts
| Quote:
Originally Posted by HachiSix lol, isnt that what the clearance bin at superstore is for haha | Most of it is 50% off stickers now. Not sure if it's still going on, but the store I go to had single cans of pop for like 49 cents.
__________________
Green OJ Special
|
| |
07-24-2009, 09:42 AM
|
#11 | Diagonally parked in a parallel universe
Join Date: Nov 2005
Posts: 1,432
Thanked 14 Times in 10 Posts
Failed 21 Times in 7 Posts
|
Just called my buddy who manages one of the stores and they are having a meeting now.
|
| |
07-24-2009, 09:51 AM
|
#12 | OMGWTFBBQ is a common word I say everyday
Join Date: Dec 2008 Location: Richmond
Posts: 5,096
Thanked 2,886 Times in 986 Posts
Failed 221 Times in 82 Posts
|
Gay, the white man is taking back power
|
| |
07-24-2009, 09:53 AM
|
#13 | HELP ME PLS!!!
Join Date: Sep 2008 Location: Burnaby
Posts: 5,541
Thanked 1,109 Times in 299 Posts
Failed 192 Times in 41 Posts
|
I always dig through the clearance bin...it's filled with goodies!
|
| |
07-24-2009, 10:11 AM
|
#14 | Diagonally parked in a parallel universe
Join Date: Nov 2005
Posts: 1,432
Thanked 14 Times in 10 Posts
Failed 21 Times in 7 Posts
| Quote:
Originally Posted by Drift_Monkey Just called my buddy who manages one of the stores and they are having a meeting now. | Update:
Meeting was just over.
Nothing much will change the way T&T does their business.
Good thing is that my buddy will get a fat bonus at the end of the year |
| |
07-24-2009, 10:27 AM
|
#15 | The RS Freebie guru
Join Date: Jul 2001 Location: East Vancouver
Posts: 22,032
Thanked 2,491 Times in 860 Posts
Failed 137 Times in 67 Posts
|
Definitely interesting...
|
| |
07-24-2009, 10:33 AM
|
#16 | My homepage has been set to RS
Join Date: Apr 2004 Location: Vancouver
Posts: 2,314
Thanked 1,463 Times in 577 Posts
Failed 40 Times in 21 Posts
|
Will be interesting to see how this plays out. Stuff at T&T will definitely change over time as Loblaws streamlines the store.
|
| |
07-24-2009, 10:47 AM
|
#17 | I WANT MY 10 YEARS BACK FROM RS.net!
Join Date: Oct 2007 Location: Vancouver BC
Posts: 22,124
Thanked 9,915 Times in 3,934 Posts
Failed 881 Times in 421 Posts
| Quote:
Originally Posted by wouwou Does this mean T&T will no longer sell expired products as "sale" items? | Superstore sells perishable items that are expiring in a day or two for like 50% off.
Lol...cheapasses unite
|
| |
07-24-2009, 10:52 AM
|
#18 | OMGWTFBBQ is a common word I say everyday
Join Date: Nov 2005 Location: Vancouver
Posts: 5,146
Thanked 160 Times in 74 Posts
Failed 57 Times in 18 Posts
| Quote:
Originally Posted by twitchyzero Superstore sells perishable items that are expiring in a day or two for like 50% off.
Lol...cheapasses unite | yes,
expiring,
and T&T does the "expired" sale.
You wont believe some of the shit people bought there.
__________________ Quote:
Originally Posted by Fei-Ji haha i can taste the cum in my mouth | There is a time when you have to sig a post.
It just happened.
|
| |
07-24-2009, 11:11 AM
|
#19 | "Entertainment" mod.
Join Date: Feb 2009 Location: Surrey, BC
Posts: 5,124
Thanked 3,465 Times in 1,056 Posts
Failed 161 Times in 60 Posts
| Quote:
Originally Posted by wouwou yes,
expiring,
and T&T does the "expired" sale.
You wont believe some of the shit people bought there. | I love showing up after 6 and buying all the old-ass sushi and BBQ meats for like half off.
__________________
Green OJ Special
|
| |
07-24-2009, 11:12 AM
|
#20 | I contribute to threads in the offtopic forum
Join Date: Apr 2007 Location: n zone
Posts: 2,660
Thanked 1,910 Times in 606 Posts
Failed 325 Times in 112 Posts
|
are you guys really that fucking cheap that you want to save one to five dollars and risk food poisoning?
jesus, they were wrong about the jews.
|
| |
07-24-2009, 11:14 AM
|
#21 | I don't get it
Join Date: Apr 2006 Location: vancouver
Posts: 438
Thanked 11 Times in 7 Posts
Failed 15 Times in 8 Posts
| Quote:
Originally Posted by Qmx323 Gay, the white man is taking back power | don't you forget it |
| |
07-24-2009, 12:05 PM
|
#22 | I answer every Emotion with an emoticon
Join Date: Apr 2005 Location: Vancouver
Posts: 7,760
Thanked 375 Times in 181 Posts
Failed 159 Times in 63 Posts
|
T&T has a lot of white guys shopping in it too
__________________
Ignorance is bliss
How I wish I can remain ignorant, why do I know so much?
|
| |
07-24-2009, 12:17 PM
|
#23 | WOAH! i think Vtec just kicked in!
Join Date: Oct 2005 Location: Vancouver
Posts: 1,650
Thanked 348 Times in 165 Posts
Failed 127 Times in 56 Posts
|
Overwaitea & Safeway are probably not too happy about this acquisition given that they are already struggling with Walmart and Superstore's low price approach.
|
| |
07-24-2009, 12:36 PM
|
#24 | Hypa owned my ass at least once
Join Date: Jul 2004 Location: Vancouver
Posts: 6,592
Thanked 1,491 Times in 341 Posts
Failed 218 Times in 69 Posts
|
i always though safeway as expensive compared to everything else, but yes they better not fuck with the tnt product line. but is osaka in yohan a part of tnt?
|
| |
07-24-2009, 12:38 PM
|
#25 | I answer every Emotion with an emoticon
Join Date: Apr 2005 Location: Vancouver
Posts: 7,760
Thanked 375 Times in 181 Posts
Failed 159 Times in 63 Posts
| Quote:
Originally Posted by Carl Johnson Overwaitea & Safeway are probably not too happy about this acquisition given that they are already struggling with Walmart and Superstore's low price approach. |
How places that sell the same grocer but charges a premium survives is beyond me. Places like Safeway and IGA, why do ppl even go there when they know they'll get raped?
__________________
Ignorance is bliss
How I wish I can remain ignorant, why do I know so much?
|
| |  | |
Posting Rules
| You may not post new threads You may not post replies You may not post attachments You may not edit your posts HTML code is Off | | | All times are GMT -8. The time now is 01:26 AM. |