BRAMPTON, ON, May 27, 2016 /CNW/ - (TSX:L) – Loblaw Companies Limited today announced it has completed a strategic review of its gas bar operations, and will engage potential buyers in considering a sale of the business. Loblaw's gas bar network is one of the largest in Canada, consisting of 212 retail fuel sites located adjacent to grocery stores in the Loblaw network.
The gas bar network continues to deliver strong and stable cash flows, and it is expected to grow as Loblaw's grocery store network grows. Loblaw believes that the right strategic partner would further elevate the business and its value to customers.
"Our gas bars have contributed consistently to our bottom line and our offer to customers," said Grant Froese, Chief Operating Officer, Loblaw Companies Limited. "Customers appreciate the convenience of onsite fuel and the benefits of a loyalty program that links gas bar and grocery purchases. We anticipate that these benefits will continue regardless of whether the business is sold."
About Loblaw Companies Limited (TSX: L)
Loblaw Companies Limited is Canada's food and pharmacy leader, the nation's largest retailer, and the majority unitholder of Choice Properties Real Estate Investment Trust. Loblaw provides Canadians with grocery, pharmacy, health and beauty, apparel, general merchandise, banking, and wireless mobile products and services. With more than 2,300 corporate, franchised and Associate-owned locations, Loblaw, its franchisees, and Associate-owners employ approximately 192,000 full- and part-time employees, making it one of Canada's largest private sector employers.
Loblaw's purpose – Live Life Well® – puts first the needs and well-being of Canadians who make one billion transactions annually in the company's stores. Loblaw is positioned to meet and exceed those needs in many ways: convenient locations; more than 1,050 grocery stores that span the value spectrum from discount to specialty; full-service pharmacies at more than 1,250 Shoppers Drug Mart and Pharmaprix locations and more than 500 Loblaw locations; no-fee banking with PC Financial; affordable Joe Fresh fashion and family apparel; and three of Canada's top consumer brands in Life Brand®, no name® and President's Choice®. Through the PC Plus™ and Shoppers Optimum® loyalty programs, more than one in every three Canadians are rewarded for shopping with the companies.
This Press Release contains forward-looking statements about Loblaw's objectives, plans, goals and aspirations. Forward-looking statements in this Press Release include statements relating to Loblaw's planned divesture of its gas bar business. These forward-looking statements reflect Loblaw's current estimates, beliefs and assumptions, which are based on management's perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. Loblaw's estimates, beliefs and assumptions are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and as such, are subject to change. Numerous risks and uncertainties, including risks and uncertainties not presently known to Loblaw, could cause Loblaw's actual plans, actions and results, as described in this Press Release, to differ materially from those expressed, implied or projected in the forward-looking statements, including, but not limited to, changes in economic and market conditions, heightened competition and other risks and uncertainties discussed in Loblaw's materials filed with the Canadian securities regulatory authorities, from time to time, including the Risks section of Loblaw's Annual Information Form dated February 25, 2016. Loblaw can give no assurance that such estimates, beliefs and assumptions will prove to be correct. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect Loblaw's expectations only as of the date of this Press Release. Loblaw disclaims any intention or obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE Loblaw Companies Limited
For further information: Media inquiries, contact: Loblaw Public Relations, [email protected]; Investor inquiries, contact: Sophia Bisoukis, Investor Relations, 905-861-2436 x613267, [email protected]