Canadian retailer Loblaw has revealed that its net earnings stood at C$165m (or C$0.59 per share) during the fourth quarter of 2009, down from the C$190m (C$0.70 per share) recorded in the same period of 2008.
Quarterly sales fell from C$7.75bn during the previous year to C$7.31bn, while same-store sales dropped 7.8 per cent, impacted by an extra week in 2008.
'We are three years into our renewal programme and making progress with two of the toughest years ahead,' said Loblaw's executive chairman Galen Weston. 'As we enter 2010, we continue to expect sales and margins to be challenged by deflation and increased competitive intensity.
'The company plans to step up its investment in information technology and supply chain which will negatively impact operating income by approximately C$185m over 2009, while at the same time maintaining its capital expenditures at approximately C$1bn,' he added.
