Loblaw Companies Limited · TSX:L
Loblaw Companies — 2009 Scotia Capital Conference
21 slides from Loblaw Companies's conference presentation, Sep 22, 2009
Slide 1: 2009 Scotia Capital Conference
Allan Leighton President & Deputy Chairman 2009 Scotia Capital Conference September 22, 2009
Slide 2: Forward-Looking Statements
Forward-Looking Statements This publication for Loblaw contains forward-looking sales growth, anticipated cost savings or operating statements about the Company’s objectives, plans, goals, efficiencies from the Company’s major initiatives, including aspirations, strategies, financial condition, liqu
Slide 3: Forward-Looking Statements (Continued)
Forward-Looking Statements (Continued) changes in the value of stock-based compensation and Other risks and uncertainties not presently known to the equity forward contracts relating to common shares; Company or that the Company presently believes are not changes in the Company’s tax liabilities inc
Slide 4: The Three R's
The ’s 4
Slide 5: Renewal, Recovery, Recession
Renewal Recovery Recession 5
Slide 6: The Three R's
The Three R’s Renewal Half Way There What Shape Inflation? Along Came a Recession What it All Means to a Retailer The Consumer Changed Productivity Trap The Market Slowed Uncertainty Before Utopia Inflation is Key to Retail’s Role in Recovery Key Themes for Recovery Thoughts fo
Slide 7: Renewal Half Way There
Renewal Half Way There Progress To-Do Centralization Infrastructure Supply Chain 2010 Merchandising Balance Sheet Operational Consistency 7
Slide 8: Along Came the Recession
Along Came the Recession Unemployment Consumer Confidence 10% 110 9% 100 8% 90 7% 80 6% 70 5% 60 2006 2007 2008 2009 2006 2007 2008 2009 8 Sources: Labour Force Survey, Statistics Canada; Conference Board of Canada; J.C. Williams Group Limited
Slide 9: What Shape Inflation?
What Shape Inflation? Canadian Food Inflation 10% 8% 6% 4% 2% 0% 2008 2009 -2% 9 Sources: Statistics Canada
Slide 10: The Consumer Changed
The Consumer Changed "I no longer consider the items to be a necessity" 60 50 40 48 48 Percent 41 36 38 38 30 36 20 18 10 13 6 15 0 Bakery Dairy Deli HMR Meat Produce Seafood Frozen Foods Flight to value… Reduce Trade into Long haul, discretionary control label not short item spending 10 Sources: Ho
Slide 11: The Market Volume Slowed
The Market Volume Slowed Canadian Grocery Department Volume Growth 4 Weeks Ending 0.0% June 13 July 11 August 8 -0.5% -0.7% -1.0% -1.0% -1.5% -1.4% 11 Sources: Nielsen Storeview, National All Channels, Grocery Department Tonnage % Chg
Slide 12: Inflation Drives How Retail Fares in Recovery
Inflation Drives How Retail Fares in Recovery Aids Top Line Determines Wage Inflation Impacts Cost of Goods Sold 12
Slide 13: Is It…
Is It… 13
Slide 14: We Think It's This Shape
We Think It’s This Shape Actual Projected 14
Slide 15: Duck Shaped
Duck Shaped 15
Slide 16: What It All Means to A Retailer
What It All Means to A Retailer Tough 12 Months of Top Line Sales Wage Increases Really Bite into Earnings Volume and Value to the Fore Impacting Margin Productivity an Absolute 16
Slide 17: Retail Productivity Trap
Retail Productivity Trap Increases Above Low Inflation Flex High Cost Labour Contracts 17
Slide 18: Mid-Term View: Uncertainty Before Utopia
Mid-Term View: Uncertainty Before Utopia 18
Slide 19: Themes for Recovery
Themes for Recovery Loyals are Key… and Most Profitable Scale is Everything Volume will Rule Value will Drive Productivity Absolute Cash is King 19
Slide 20: Thoughts for the Day
Thoughts for the Day The Unimaginable is Still Unpredictable What Will Be the Lessons Not Learned? Don’t Let Dead Cats Stand on Your Porch The Goldilocks Strategy Blue is the New Black 20
Slide 21: Thank You
Thank You Company reports are Third Quarter 2009 Results available online at and Conference Call www.loblaw.ca Tuesday November 17, 2009 8am (EST) Release For any investor 11am (EST) Conference Call inquiries, please email investor@loblaw.ca Call in details will be posted one month in advance