Grocery wars between Loblaw & Metro

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Canada’s grocery wars seem to be taking a toll.

The country’s largest supermarket chain – Loblaw – is lowering its forecast for profit growth, because of thinner profit margins in the second half of the year. Loblaw’s net income dropped in the third quarter by more than 28 per cent – for adjusted earnings of $220 million.

Metro is trading near a seven month low this afternoon after its fourth quarter results were below analyst estimates. Its earnings were up less than one per cent, after efforts to control costs and reorganize its store network.

Both are fighting expanded grocery sales from Walmart, Target and Amazon dot com.

Video (above:) Marvin Ryder of the DeGroote School of Business shares his take on the grocery wars.