Canadian Tire Eliminating Some Corporate Jobs Amid Restructuring
Canadian Tire has announced plans to reduce its corporate staff roles as part of a modernization and transformation drive. The company aims to remain competitive in a new era of retail, characterized by global competitive threats and the need for speed and efficiency.
As part of these changes, some corporate roles will be expanded and others will be eliminated. The company confirmed that these changes will result in an overall decrease in the number of corporate roles at the company. The company did not specify where the jobs would be affected by the cuts.
In March, the company announced a $2 billion investment strategy to restructure for growth. In November 2023, it announced a three percent reduction in its full-time workforce to lower costs.
Loblaw’s Q2 Profit Rises as Shoppers Continue To Flock To Discount
Loblaw Cos. Ltd.’s profit increased in the second quarter due to a surge in new discount stores, driven by Canadians seeking lower-priced products. The company’s CEO, Per Bank, said that the trend of Canadians seeking promotions and private-label products is driving up sales at its discount stores. Loblaw announced plans to spend $2.2 billion on opening 80 new grocery and pharmacy stores earlier this year, with about 50 being smaller-format discount stores. The company has opened 20 new stores and 23 new pharmacy clinics so far.
The parent company reported net earnings available to common shareholders of $714 million, or $2.37 per diluted share for the quarter ended June 14, up from $457 million, or $1.48 per diluted share in the second quarter of 2024. However, Loblaw did not upgrade its guidance due to uncertainty. The company could update its financial guidance in its third-quarter results.
To strengthen its local supply chain, Loblaw onboarded another 130 Canadian vendors onto its network. The ongoing tariff dispute with the United States and the trend of shoppers favouring Canadian-made products have led many grocers to increase their local offerings. The company began highlighting domestic products in its stores while also marking products that have seen price hikes due to tariffs with a “T” symbol.
On an adjusted basis, Loblaw earned $2.40 per diluted share in its latest quarter, up from an adjusted profit of $2.15 per diluted share a year earlier. Revenue for the quarter totalled $14.7 billion, up from $13.9 billion, as food retail same-store sales rose by 3.5%. Sales growth was driven by new store openings and improved same-store sales, with “impactful promotions driving higher customer engagement.”
Source: The Star
Source: Globe and Mail
Source: Financial Post
Source: Loblaw
Canadians Shunning Products Hit by Retaliatory Tariffs, Loblaw CEO Says
Loblaw Cos. Ltd. has reported a 15% decline in sales of products labelled as affected by tariffs in recent weeks. The company has added a “T” symbol on its shelves to identify items, particularly those coming into Canada from the U.S., directly subject to retaliatory tariffs, impacting their price.
Loblaw’s CEO, Per Bank, said the initiative is unique to Loblaw and has been successful in helping customers identify tariff items, supporting Canada, and saving money. The company is also incentivizing suppliers to mitigate the tariff impact to avoid the T label designations.
Loblaw has doubled its efforts to support Canadian products, adding more than 100 new Canadian vendors. Bank emphasized that U.S. tariffs are still a factor in groceries and that tariff countermeasures remain in place. The company reported increased revenues in the second quarter, attributing the growth to higher customer traffic and unit sales.
Source: Financial Post
Hudson’s Bay Asks Court To Force Landlords To Let B.C. Billionaire Take Over Leases
Hudson’s Bay is seeking the Superior Court of Ontario’s approval for the assignment of up to 25 of its leases to B.C. billionaire Weihong Liu’s company, Central Walk. Liu, who owns three shopping malls in B.C., pledged to launch a “modern department store” brand that will serve different generations and deliver immersive shopping experiences at the former Hudson’s Bay locations. However, not a single landlord has agreed to her plan, with most having submitted letters to Liu in June, citing insufficient evidence of her retail experience and the lack of a credible business plan as reasons for opposing the lease reassignment.
Court documents on July 29th showed Hudson’s Bay had considered terminating the agreement with Central Walk earlier this month but opted to proceed with a motion to compel landlords to accept Central Walk as a tenant after consulting stakeholders, including its largest lender, Pathlight Capital. Liu told the court that Central Walk would comply with existing use provisions and obligations under the leases and begin rent payment immediately after the assignment. The company has pledged a $375 million initial equity investment, including $120 million for store renovations, and plans to open the locations on a rolling basis within six to 12 months.
Several former senior Hudson’s Bay employees and 11 former managers are either in discussions to join or have already agreed to join Central Walk. Central Walk also plans to engage J2 Retail Management, which has submitted a proposal to support inventory stocking and supply chain logistics. Liu, an immigrant and entrepreneur from China, stated in the court filing that her company has a proven track record of identifying the fixable shortcomings of retail spaces and remedying them.
Central Walk’s business plan is expected to face challenges from opposing landlords when the court hears Hudson’s Bay’s lease assignment motion, along with a motion from the retailer’s senior lender, Restore, to terminate the transaction with Central Walk, on Aug. 28. Liu successfully bought out Hudson’s Bay’s leases on three shopping centres she owns for $6 million last month.
Source: Financial Post
Source: The Star
Source: The Star
Competition Bureau to Probe Whether Amazon’s Rules Are Unfair to Sellers and Consumers
The Competition Bureau has obtained a court order to investigate Amazon’s conduct related to its online Canadian marketplace. The regulator is investigating Amazon’s fair pricing policy, which allows the company to penalize sellers for certain conduct, such as setting significantly higher prices for products on Amazon.ca than recent prices offered on Amazon or elsewhere. Online marketplaces allow shoppers to buy products from both third-party sellers and the platform itself, with third-party sellers typically paying a commission or other fees to use the platform.
The investigation focuses on a potential abuse of dominance and is distinct from its investigation into Amazon’s marketing practices. The court order from the Federal Court requires Amazon to produce relevant records and information. Amazon spokesperson Julia Lawless stated that the company’s store and policies are designed to help customers find products at low prices and with various delivery options.
The regulator will continue to collaborate with Amazon to demonstrate this, aiming to enable customers to make informed purchase decisions and maintain their trust while supporting the thousands of Canadian businesses that sell through its store.
Source: Financial Post
Source: Globe and Mail
Source: The Star
Walmart Unveils AI Super Agents Roll-Out to Boost E-Commerce Growth
Walmart has announced plans to roll out a suite of AI-powered “super agents” designed to improve the shopping experience for customers and streamline operations. The four agents, powered by agentic AI, will soon be the primary way people engage with Walmart, replacing several existing agents and AI tools. Walmart is betting on AI to drive its e-commerce growth, aiming for online sales to account for 50% of its total sales within five years. By harnessing AI to streamline the shopping process, from discovering new products and helping with returns to improving delivery speeds, the retailer hopes to attract more shoppers away from Amazon.
Walmart’s push comes as the short-term financial payoff of AI remains uncertain and concerns over how it might affect jobs across the industry. One of the agents, Sparky, is already available for shoppers on Walmart’s app as a Gen-AI-powered tool. In its “super agent” form, it will be able to reorder items, plan events, and offer product recipes through computer vision. Walmart is also developing an “Associate” super agent, which will allow workers and corporate staff to do things such as submit an application for parental leave or give store managers immediate information on sales data for a certain category or a product with minimal input.
For sellers, suppliers, and advertisers, Walmart is developing a super agent called “Marty” to streamline the onboarding process, manage orders, and create ad campaigns. It is also working on a “Developer” super agent, which will be the platform on which all future AI tools will be tested, built, and launched. Walmart chose to launch these super agents now because “customers are ready; they are using AI in pretty much everything they do.”
Source: Reuters
Source: Globe and Mail
