Loblaw is reporting a Q4 boost in earnings and total revenue, along with a spike in ecommerce sales.

Net earnings for the parent of Loblaw banners and Shoppers Drug Mart were $541 million in Q4, an increase of 2.3%, while revenue totaled $14.53 billion, which was up from $14.01 billion a year earlier. Ecommerce sales increased by 14.6%, totaling $3.3 billion on a full-year basis.

The company says its value proposition, private label brands and personalized PC Optimum offers continued to resonate with customers, which resulted in traffic growth and continued market share momentum in Food Retail. Loblaw also says its offers are resonating well with customers, and that it’s seeing higher foot traffic.

Food retail (Loblaw) same-stores sales increased by 2.0%, while drug retail (Shoppers Drug Mart) same-store sales increased by 4.6%. Front store same-store sales grew 1.7%, and pharmacy and healthcare services same-store sales grew 8%.

Loblaw posted a 3.4% rise in its retail segment sales, riding on demand for its beauty products and medicines.

In Thursday morning’s (Feb. 22) earnings call, Loblaw Companies president and CEO Per Bank said the company is focusing on new opportunities to unlock value. Bank says the company is leveraging private label and PC Optimum loyalty, and providing value on key everyday products, while also targeting offers in “more meaningful ways.”

Bank spotlighted Loblaw’s personalization program and making appealing and relevant offers to consumers. Its PC Optimum loyalty points are being used “in record levels,” he added.

Food inflation is “significantly lower than the consumer price index this quarter,” Bank noted, adding that the company’s average price increase was the lowest its been in two years.

Bank says discount stores are outperforming, but that its market banners remain very healthy.

The company opened eight more Maxi and No Frills discount stores in the fourth quarter. This week, Loblaw announced it would build more than 40 new locations, an investment that will cost approximately $2 billion. Loblaw says it’s “accelerating” the opening of new stores. It also says it will also expand or relocate another 10 locations and renovate more than 700 others.

Finally, Bank announced ESG efforts and is driving change when it comes to reducing plastic waste. It is making “excellent” progress in terms of product recyclability compliance, he says. The company says it’s making progress when it comes to food waste too, reporting that it doubled its food donation rate from 2023.