Loblaw Companies Ltd. plans to close 52 unprofitable stores in Canada over the next year, it says in its second-quarter earnings release.
The company made the announcement Thursday, saying the closures will affect all of its banners and formats.
"The list includes gas bars, Joe Fresh standalone stores and select pharmacies and grocery stores," a spokesperson with the company told CBC News.
Loblaw Companies has more than 2,300 stores, including Loblaws, Provigo, and Extra Foods. It also owns Shoppers Drug Mart. The spokesman added that even with the store closures, Loblaw is on track to grow the number of jobs in its network of stores this year.
Loblaw said the closures will cut its annual sales by roughly $300 million a year, but will result in a $35 million to $40 million improvement in its operating income.
The closures are expected to cost the company approximately $120 million. Of this amount, a charge of $45 million was taken in the second quarter ended June 20, including $30 million for severance and lease termination costs.
The company made the announcement Thursday, saying the closures will affect all of its banners and formats.
"The list includes gas bars, Joe Fresh standalone stores and select pharmacies and grocery stores," a spokesperson with the company told CBC News.
Loblaw Companies has more than 2,300 stores, including Loblaws, Provigo, and Extra Foods. It also owns Shoppers Drug Mart. The spokesman added that even with the store closures, Loblaw is on track to grow the number of jobs in its network of stores this year.
Loblaw said the closures will cut its annual sales by roughly $300 million a year, but will result in a $35 million to $40 million improvement in its operating income.
The closures are expected to cost the company approximately $120 million. Of this amount, a charge of $45 million was taken in the second quarter ended June 20, including $30 million for severance and lease termination costs.
