BRAMPTON, Ontario — Loblaw Cos. reported revenue of $12.76 billion (all figures Canadian) for the fourth quarter of fiscal 2021. This represented an increase of 2.8% (adjusted) when compared to the fourth quarter of 2020.

Retail segment sales were $12.49 billion, up 2.6% when compared to the fourth quarter of 2020. Food retail (Loblaw) same-store sales increased by 1.1%, while drug retail (Shoppers Drug Mart) same-store sales increased by 7.9%, with pharmacy same-store sales growth of 10.2% and front store same-store sales growth of 6.1%.

Loblaw said it experienced strong demand in the fourth quarter as consumers continued to eat-at-home, particularly over the holiday period. The company’s focus on retail excellence resulted in operational and financial improvements, despite supply chain and inflationary pressures, according to the company. Discount banners (representing 60% of Loblaw’s food retail network) benefited from the return of price-sensitive customers, and conventional market stores extended strong performance, with impactful promotional strategies. Drug retail front-store and prescription sales benefited from the loosening of social restrictions in the quarter. The drug retail business continued to play an important role in supporting communities nationwide with COVID-19 testing and vaccine services. Loyalty and data-driven marketing promotions across the portfolio were effective as customers responded favorably to mass and personalized offers.

“Loblaw showed strength in the fourth quarter as we delivered improved results across the board,” Loblaw chairman and president Galen Weston. “We are effectively managing through a challenging environment of supply chain constraints and higher costs. With a clear strategic agenda, we remain confident in our ability to create value over the long term.”

Loblaw also announced a new goal of achieving net-zero carbon emissions for its operational footprint by 2040, and achieving net-zero for Scope 3 emissions, including those generated by suppliers, by 2050.

“Climate change is one of the biggest issues of our time,” said Galen G. Weston, Chairman and President, Loblaw Companies Limited. “We are committed to doing our part, extending our past progress by setting an ambitious net-zero target.”

In 2016, Loblaw committed to a 30% reduction in corporate carbon emissions by 2030. It achieved the target in 2020, with advancements in energy management, equipment conversions, and by addressing refrigerant leaks. Thursday’s announcement was informed by the Science Based Target Initiative, and represents an expansion of Loblaw’s ambitions to its full corporate, independent and franchise store network, its distribution centres, and ultimately its supplier network.