Recession profitable for grocery store chain – Metro US

Recession profitable for grocery store chain

Food Grocery store operator Metro Inc. reported soar­ing profits as recession-weary consumers shun­ned restaurants for home-cooked meals, helping to confirm the view that tough times are good for grocers and pharmacy retailers.

With its conventional and discount stores in Quebec and Ontario and a new line of private label products, Metro said it is well-positioned to take advantage of consumer angst as they look for value.

CEO Eric La Fleche said Thursday momentum is stron­g­est at its discount Food Basics and Super C stores, although sales are also growing at its conventional banners.

The company earned $76.3 million or 68 cents per share for the quarter ended March 14, a record for the second quarter. Profits were up more than 41 per cent from year-earlier net earnings of $54 million or 48 cents per share.

Revenues rose 7.5 per cent to $2.55 billion.

Sales at locations open for at least a year — a key measure for retailers — surged 7.3 per cent for the quarter, aided by four per cent price inflation.

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