turnaround is evidentWith todays NR on the Q and beating analysts expectations it seems like nuff progress is being made by Loblaw management.
They seem to be hiring the right people to get things done like this headline below also posted today with the q earnings.
Loblaw Companies Limited Selects JDA Software to Strengthen Forecasting and Inventory Management and Streamline Its Transportation Network
I would think that to be undergoing restructuring in these times would prove to be the best for the company when it's over. I will be accumulating more shares as of today before analysts start jumping on the bandwagon.
Loblaw is heading into the right direction with focusing on food and drug merchandise and getting out of general merchandise as this is where the profits are coming from.
Shrinkage has improved considerably it seems since they addressed the problem last year.
With the hiring of companies to streamline the organization to maintain inventory and process the shipping and sales of products more efficiently Loblaw will be better able to keep profits improving in the future.
Loblaw might have a higher P/E than other supermarkets but they are the dominant player in Canada and deserves it with being a canadian tradition. Things will only improve coming out of a recession with giving fair and lower prices now to customers and having them shop in Loblaw stores now and retaining them after in good times.
I thing Galen Weston is too conservative in explaining the advancements by the company. Things are more optimistic than what he says.
Sure we are in a recession and Market conditions and economy are not rosy however to be a grocery store chain in these times is perhaps where you would want to be. Like many others we are all cutting back on eating at restaurants and buying coffee at the shops. The best way for any family to make it through is to buy the essentials only from our biggest grocery chain.
It does not matter what any analysts are saying as they have motives and to some it's just a job. Many have looked into the camera and wrote in print untruths to fulfill obligations.
Without a doubt any company that restructures to streamline operations and shows in the bottom line improvements while not halfway through it will amaze when finished. The time to buy is now when the road is bumpy. not when everything is all clear.