Loblaw Posts Higher Q1 Profit as Discount Stores Boom and GLP-1 Drug Sales Surge 40%

In 2023, Loblaw began aggressively expanding its discount grocery banners as Canadians struggled with decades-high food inflation. That bet is still paying off. For the 12-week period ending March 28, 2026, Loblaw reported a profit of $594 million or 50 cents per diluted share, up from $503 million or 42 cents a year earlier. Revenue rose to $14.72 billion from $14.14 billion in Q1 2025. Grocery same-store sales grew 2.4%, while the 28 new discount stores opened since 2023 posted double-digit same-store sales growth. Loblaw also raised its quarterly dividend 10% to 15.5 cents per common share. Shoppers Drug Mart same-store sales climbed 4.1%, with pharmacy and health services up 6.7%. GLP-1 drug sales surged 40%, and with generic versions recently approved, expected to cost roughly a third of the current ~$350 price, further sales growth is anticipated. Loblaw also announced a $2.4 billion investment to open 70 new discount and Shoppers stores, with 30 planned for 2026 alone.