Loblaw announces major international Joe Fresh expansion; 120 stores in 4 years

Published: February 20, 2014

A Joe Fresh garment made in Bangladesh is shown at a Loblaws outlet in Montreal, Thursday, April 25, 2013. THE CANADIAN PRESS/Graham Hughes

LINDAY NGUYEN
THE CANADIAN PRESS

Grocery giant Loblaw Companies Ltd. (TSX:L) is bringing its Joe Fresh discount clothing line overseas in a major expansion that will target fashionistas in key growth markets like the Middle East and North Africa.

The company said Thursday the rollout includes the addition of 120 Joe Fresh stores in 25 countries, including South Korea and eastern Europe over the next four years.

“This is representative of what has been a long-standing belief on our part that there is an international level of opportunity for the Joe Fresh brand,” said Galen G. Weston, the company’s executive chairman.

Currently, Loblaw sells the apparel brand at more than 300 locations inside its Canadian supermarkets, and in 12 stand-alone and studio stores. It also has six locations in New York and New Jersey.

The clothing line is already available in J.C. Penney stores in the U.S., but Weston said the deal hasn’t gone according to plan due to restructuring and leadership changes at the struggling U.S. retailer.

“It obviously hasn’t gone like we hoped that it would,” he said. “But we are comfortable they are committed to some lower volumes but to a sustained relationship with Joe Fresh so we continue to be optimistic about that.”

Last year, tragedy overshadowed the clothing brand after a factory in Dhaka, Bangladesh, that produced Joe Fresh clothing collapsed, killing 1,100 people. Loblaw responded to the accident by providing financial compensation for workers and dependents of the company who made the clothing.

Meanwhile, Loblaw president Vicente Trius said Loblaw will also be expanding its e-commerce platform this year by running a test pilot on a “click-and-collect” option for groceries at three of its Toronto locations.

This online strategy, which has been gaining popularity in the U.K., will allow customers to purchase food online and pick up their order at the store.

Earlier Thursday, Loblaw reported better fourth-quarter financial results than analysts were expecting.

The company had $183 million or 65 cents per share of adjusted net earnings in the quarter, down 1.1 per cent from a year earlier but 10 cents above the general estimate. Revenue was up 2.3 per cent to $7.64 billion, also better than expected.

Same-store sales, an important measure in the retail industry, edged up 0.6 per cent compared with a year earlier.

Trius said it was important to note that same-store sales, from locations open at least a year, benefited from the timing of the Thanksgiving holiday but were hurt by an ice storm in Eastern Canada and a strike in Alberta.

Analysts had estimated 55 cents of adjusted earnings and less than $7.6 billion of revenue in the fourth quarter, according to Thomson Reuters.

Among the fastest growing sources of revenue for Loblaw was its Presidents Choice financial services segment, which contributed $204 million in the quarter, up 15.9 per cent from a year earlier. Since launching its PC Plus program In November, the company said it has signed up more than four million users.


Pages: 1 2

Tags: , , , , , , , , , , , ,



Readers Comments (0)

Comments are closed.

Featured

crime-British Columbia

Three arrested after Surrey RCMP-involved shooting in Newton

AMY REID SURREY NOW NEWTON — Three people are in custody following a police-involved shooting in Newton Friday afternoon. Shortly after noon, plainclothes officers attempted to…
Continue Reading »

Immigrant-language test

Woman loses Canadian citizenship for failing language, knowledge tests after it was granted in error

ADRIAN HUMPHREYS POSTMEDIA NEWS A would-be Canadian who received a grade of zero out of six on her citizenship language test and four out of…
Continue Reading »

India-Kashmir-Obama

Pakistani PM Sharif asks Obama to play role for resolution of Kashmir issue

MUNIR AHMED THE ASSOCIATED PRESS ISLAMABAD — Pakistani Prime Minister Nawaz Sharif on Friday asked the U.S. President Barack Obama to play a role in…
Continue Reading »

LOCAL NEWS

crime-British Columbia

Three arrested after Surrey RCMP-involved shooting in Newton

AMY REID SURREY NOW NEWTON — Three people are in custody following a police-involved shooting in Newton Friday afternoon. Shortly after noon, plainclothes officers attempted to…
Continue Reading »

Whitecaps2

Spice Sports: Whitecaps announce new USL PRO team!

GOPI AND THE GORA FOR VANCOUVER DESI An exciting announcement was made this morning at UBC’s Gerald McGavin Rugby Centre. Soccer fans in Vancouver will…
Continue Reading »

Immigrant-language test

Woman loses Canadian citizenship for failing language, knowledge tests after it was granted in error

ADRIAN HUMPHREYS POSTMEDIA NEWS A would-be Canadian who received a grade of zero out of six on her citizenship language test and four out of…
Continue Reading »

Don't Miss...

desi bride loaded in gold

Indian bride draws flak for wearing $700,000 jewellery at her wedding

CEN AGENCY An Indian sweet maker made sure his daughter was the golden girl at her upcoming wedding by covering her in gold jewellery worth…
Continue Reading »

India

Video: Bear mauls Indian farmer to death, injures second man (Warning: Graphic Content)

VANCOUVER DESI An Indian farmer was mauled to death and another left seriously injured after a terrifying and unusual bear attack in Karnataka on Monday,…
Continue Reading »

Spiderman

Video: India’s real-life Spiderman scales buildings with bare hands

VANCOUVER DESI A 27-year-old man in India who is nicknamed the “real-life Spiderman” has become one of Karnataka’s leading tourist attractions for his ability to effortlessly…
Continue Reading »

desi victim

Victim of ski accident to open spinal-cord recovery centre in Richmond (w/video)

NICK EAGLAND VANCOUVER DESI Dhruv Kapoor realized he was in deep trouble as he barrelled down a ski run in Russell, Man., on an icy…
Continue Reading »

op-ed

Aziza Sindhu: How do you grieve for a tyrant father?

AZIZA SINDHU CALGARY HERALD My father, Salim M. Sindhu, passed away on Nov. 10. As a child, I wished he smiled at me, as a…
Continue Reading »


Bollywood Latest

Bollywood

Aamir Khan and Deepika Padukone the next hit Bollywood couple?

HINDUSTAN TIMES Bollywood actors Aamir Khan and Deepika Padukone are known to deliver hits on their shoulders alone. Now, audiences may be in for a…
Continue Reading »

Bollywood sex video

I can’t take nonsense: Sonakshi Sinha on why she lashed out at KRK on Twitter (w/gallery)

HINDUSTAN TIMES Some Bollywood stars tend to be diplomatic about controversies, and choose not to react. Sonakshi Sinha isn’t one of them. Last month, she…
Continue Reading »

Bollywood wedding reception

Photos: Khan-tastic wedding reception for Salman’s sister Arpita

VANCOUVER DESI While celebrities have reached the wedding reception for Salman Khans sister Arpita and businessman Aayush Sharma to wish them their best, photos have…
Continue Reading »