JasonParis
Moderator
Just heard on CBC's Metro Morning that T&T Supermarkets Canada have been purchased by Loblaw's.
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T&T Supermarket Chain acquired by Loblaws
- Thread starter JasonParis
- Start date
Northern Light
Superstar
Darkstar's breaking news: The Article
Thanks to Darkstar's tip; here's article:
From www.cbc.ca
Grocery retailer Loblaw Companies Ltd. said Friday it is buying T&T Supermarket Inc., Canada's largest Asian food retailer, for about $225 million.
Loblaw 3-month TSX chartLoblaw 3-month TSX chart
Loblaw said the deal is for $191 million in cash, with the rest in preferred shares issued by T&T. The value of the preferred shares will be tied to the future performance of the business.
Launched in 1993, T&T operates 17 stores in British Columbia, Alberta and Ontario, and four distribution centres —three in Vancouver and one in Toronto.
"T&T's talented management team and colleagues have developed what we believe are the best Asian stores in Canada, which will be used to help Loblaw extend its ethnic offering to better serve Canada's largest growing customer segment," Galen G. Weston, executive chairman of Loblaw, said in a release.
Sales at T&T hit roughly $514 million in the 12 months leading up to June 30.
"Some of our customers have a nickname for us — the Asian Loblaw. Today we are proud it has become a reality," said Cindy Lee, CEO of T&T.
The deal is expected to be completed by the end of this year.
Loblaw's store chains already include Zehrs, Fortinos, Real Canadian Superstore, valu-mart, Atlantic Superstore, Maxi, Maxi & Cie, no frills, Provigo and Extra Foods. The company has about 1,000 corporate-owned or franchised stores across the country.
Article Link:
http://www.cbc.ca/money/story/2009/07/24/loblaw-tandt-takeover.html
Thanks to Darkstar's tip; here's article:
From www.cbc.ca
Grocery retailer Loblaw Companies Ltd. said Friday it is buying T&T Supermarket Inc., Canada's largest Asian food retailer, for about $225 million.
Loblaw 3-month TSX chartLoblaw 3-month TSX chart
Loblaw said the deal is for $191 million in cash, with the rest in preferred shares issued by T&T. The value of the preferred shares will be tied to the future performance of the business.
Launched in 1993, T&T operates 17 stores in British Columbia, Alberta and Ontario, and four distribution centres —three in Vancouver and one in Toronto.
"T&T's talented management team and colleagues have developed what we believe are the best Asian stores in Canada, which will be used to help Loblaw extend its ethnic offering to better serve Canada's largest growing customer segment," Galen G. Weston, executive chairman of Loblaw, said in a release.
Sales at T&T hit roughly $514 million in the 12 months leading up to June 30.
"Some of our customers have a nickname for us — the Asian Loblaw. Today we are proud it has become a reality," said Cindy Lee, CEO of T&T.
The deal is expected to be completed by the end of this year.
Loblaw's store chains already include Zehrs, Fortinos, Real Canadian Superstore, valu-mart, Atlantic Superstore, Maxi, Maxi & Cie, no frills, Provigo and Extra Foods. The company has about 1,000 corporate-owned or franchised stores across the country.
Article Link:
http://www.cbc.ca/money/story/2009/07/24/loblaw-tandt-takeover.html
Northern Light
Superstar
My thoughts:
My take on this:
1) There goes another indy..
..just wait, Metro buys Safeway out west; and Longos comes together with Jim Pattison's company out west (aka Save-On-Foods, Overwaitea Foods, PriceSmart Foods, Cooper’s Foods, Urban Fare and Bulkley Valley Wholesale) and that's it; 4 major suppliers left.
2) As long as we have to permit this; I hope Loblaws learns from T&T about prepared foods. T&T is miles ahead of Loblaws in that department, better sushi, of course, but better meals, better desserts etc.
While they're at it, they can learn to carry goose, duck, goose eggs, quail eggs and assorted other interesting fare that T&T carries.
My take on this:
1) There goes another indy..
..just wait, Metro buys Safeway out west; and Longos comes together with Jim Pattison's company out west (aka Save-On-Foods, Overwaitea Foods, PriceSmart Foods, Cooper’s Foods, Urban Fare and Bulkley Valley Wholesale) and that's it; 4 major suppliers left.
2) As long as we have to permit this; I hope Loblaws learns from T&T about prepared foods. T&T is miles ahead of Loblaws in that department, better sushi, of course, but better meals, better desserts etc.
While they're at it, they can learn to carry goose, duck, goose eggs, quail eggs and assorted other interesting fare that T&T carries.
bAuHaUs
Active Member
Loblaws acquires T&T Supermarket Chain
Cash flows in and out of Loblaw's tills
The Asian Loblaw
Eric Lam, Financial Post
Published: Friday, July 24, 2009
Loblaw Companies Ltd. was both counting and spending its money on Friday, announcing a 38% rise in second quarter profit and agreeing to purchase T&T Supermarket Inc., Canada's largest Asian food retailer, in a cash-and-share deal worth $225-million.
Loblaw attributed the profit to cost efficiencies and increased gross margins in the quarter as it warned investors to prepare for a tough second half.
The grocery giant reported net earnings for the quarter ended June 20 of $193-million (70 cents a share), up from $140-million (51 cents) in the second quarter of 2008. Gross profit rose 6.6%, to $1.68-billion from $1.58-billion. First-half numbers were also encouraging, as net earnings have risen 49% to $302-million ($1.10) from $203-million (74 cents) in that period.
Total sales in the quarter rose 2.8% to $7.2-billion, thanks to the uptick in same-store sales growth and the shift of Easter holiday sales to the second quarter. Same-store sales were up 2.5%.
While growth in the food and drugstore segments was strong, apparel performed modestly and all other general merchandise continued to decline, the company said. Sales at its gas bars also dropped on lower retail pricing. Four new corporate and franchised stores opened during the quarter, while five closed. This works out to a drop of 100,000 square feet of retail space.
"This quarter's improvement in earnings was largely cost and gross margin driven," Galen Weston, Loblaw executive chairman, said in a statement. "This is a trend we do not expect to continue. We have consistently said that the second half of this year would be by far the toughest."
The company expects declines in market volume and inflation, while competition is likely to increase.
"[Add] a substantial ramp up in our infrastructure and renovation programs, we expect sales and margins to be significantly challenged," he said.
Loblaw also announced Friday it had acquired T&T through it subsidiary Loblaws Inc. after the end of the quarter.
Loblaws Inc. will pay $191-million in cash, while the rest will be covered by preferred shares issued by T&T, the companies announced in a statement.
"T&T's talented management team and colleagues have developed what we believe are the best Asian stores in Canada, which will be used to help Loblaw extend its ethnic offering to better serve Canada's largest growing consumer segment," Mr. Weston said in a release.
The sale is expected to close before the end of the year.
"Some of our customers have a nickname for us -- the Asian Loblaw. Today we are proud it has become a reality," Cindy Lee, chief executive of T&T, said.
Sales at T&T, which first opened in 1993, have totalled about $514-million in the past year. The supermarket chain is headquartered in British Columbia and runs 17 stores across the country.
Loblaw is Canada's largest food distributor with more than 1,000 stores in Canada, employing 139,000 people.
Cash flows in and out of Loblaw's tills
The Asian Loblaw
Eric Lam, Financial Post
Published: Friday, July 24, 2009
Loblaw Companies Ltd. was both counting and spending its money on Friday, announcing a 38% rise in second quarter profit and agreeing to purchase T&T Supermarket Inc., Canada's largest Asian food retailer, in a cash-and-share deal worth $225-million.
Loblaw attributed the profit to cost efficiencies and increased gross margins in the quarter as it warned investors to prepare for a tough second half.
The grocery giant reported net earnings for the quarter ended June 20 of $193-million (70 cents a share), up from $140-million (51 cents) in the second quarter of 2008. Gross profit rose 6.6%, to $1.68-billion from $1.58-billion. First-half numbers were also encouraging, as net earnings have risen 49% to $302-million ($1.10) from $203-million (74 cents) in that period.
Total sales in the quarter rose 2.8% to $7.2-billion, thanks to the uptick in same-store sales growth and the shift of Easter holiday sales to the second quarter. Same-store sales were up 2.5%.
While growth in the food and drugstore segments was strong, apparel performed modestly and all other general merchandise continued to decline, the company said. Sales at its gas bars also dropped on lower retail pricing. Four new corporate and franchised stores opened during the quarter, while five closed. This works out to a drop of 100,000 square feet of retail space.
"This quarter's improvement in earnings was largely cost and gross margin driven," Galen Weston, Loblaw executive chairman, said in a statement. "This is a trend we do not expect to continue. We have consistently said that the second half of this year would be by far the toughest."
The company expects declines in market volume and inflation, while competition is likely to increase.
"[Add] a substantial ramp up in our infrastructure and renovation programs, we expect sales and margins to be significantly challenged," he said.
Loblaw also announced Friday it had acquired T&T through it subsidiary Loblaws Inc. after the end of the quarter.
Loblaws Inc. will pay $191-million in cash, while the rest will be covered by preferred shares issued by T&T, the companies announced in a statement.
"T&T's talented management team and colleagues have developed what we believe are the best Asian stores in Canada, which will be used to help Loblaw extend its ethnic offering to better serve Canada's largest growing consumer segment," Mr. Weston said in a release.
The sale is expected to close before the end of the year.
"Some of our customers have a nickname for us -- the Asian Loblaw. Today we are proud it has become a reality," Cindy Lee, chief executive of T&T, said.
Sales at T&T, which first opened in 1993, have totalled about $514-million in the past year. The supermarket chain is headquartered in British Columbia and runs 17 stores across the country.
Loblaw is Canada's largest food distributor with more than 1,000 stores in Canada, employing 139,000 people.
Eug
Senior Member
Loblaws buys T & T
I wasn't really sure where to put this, but I thought it might be appropriate here as it does have some cultural aspects to it.
T & T is my favourite Asian supermarket chain, as it is well-stocked, clean, has great take-out food for sale (including half-decent sushi and Chinese meat/vegetable buns) and is relatively well-priced.
It's got the same stuff as in Chinatown, but without the grunge. I don't mind shopping in the grungy Chinatown shops, but sometimes I get tired of the muddy floors with slippery tofu-juice all over them, and I know many less adventure-some shoppers simply won't go to some of those shops because of that grunge. In contrast, T&T has become so popular that it's moved in to replace a few other more "mainstream" grocery stores that closed (like Knob Hill Farms on the waterfront) while still keeping its stock of available Asian foods. I've noticed that the one on the waterfront is popular with Asians and non-Asians alike (including tourists).
Today, it was announced that T&T was purchased by Loblaws.
I wonder how much of a good thing this will be. Will Loblaws expand the reach of T&T and perhaps better diversify its product mix at Loblaws stores? Or will Loblaws dumb down the the Asian focus of T&T stores?
Ideally I think Loblaws will keep the T&T brand separate for its Asian stores, but will introduce more Loblaws inventory like President's Choice branded foods, while at the same time continue to expand its "ethnic" foods at Loblaws (and not just Asian stuff) as its been slowing doing over the years in some areas.
Loblaws would remain the primary grocery stores in neighbourhoods where Asians are comparative few. In areas where there is more of a mix, they could have both, especially if they can move in where there is relative paucity of grocery stores, before Metro has moved in. I don't think Loblaws will have T&T as the primary supermarket even in Asian-heavy neighbourhoods, because such neighbourhoods in Canada usually still have a relatively mixed population, and Loblaws is the primary brand anyway. However, Loblaws could still expand the number of T&T stores in the country.
As for No Frills, these are associated with Loblaws, but they are franchises. Some are nice, but some are quite grungy. I wish the No Frills stores were more consistent in their cleanliness. The Superstores are usually relatively nice, but I'm not as big of a fan of them because I'm not really interested in buying underwear when I go shopping for artichokes.
I wasn't really sure where to put this, but I thought it might be appropriate here as it does have some cultural aspects to it.
T & T is my favourite Asian supermarket chain, as it is well-stocked, clean, has great take-out food for sale (including half-decent sushi and Chinese meat/vegetable buns) and is relatively well-priced.
It's got the same stuff as in Chinatown, but without the grunge. I don't mind shopping in the grungy Chinatown shops, but sometimes I get tired of the muddy floors with slippery tofu-juice all over them, and I know many less adventure-some shoppers simply won't go to some of those shops because of that grunge. In contrast, T&T has become so popular that it's moved in to replace a few other more "mainstream" grocery stores that closed (like Knob Hill Farms on the waterfront) while still keeping its stock of available Asian foods. I've noticed that the one on the waterfront is popular with Asians and non-Asians alike (including tourists).
Today, it was announced that T&T was purchased by Loblaws.
I wonder how much of a good thing this will be. Will Loblaws expand the reach of T&T and perhaps better diversify its product mix at Loblaws stores? Or will Loblaws dumb down the the Asian focus of T&T stores?
Ideally I think Loblaws will keep the T&T brand separate for its Asian stores, but will introduce more Loblaws inventory like President's Choice branded foods, while at the same time continue to expand its "ethnic" foods at Loblaws (and not just Asian stuff) as its been slowing doing over the years in some areas.
Loblaws would remain the primary grocery stores in neighbourhoods where Asians are comparative few. In areas where there is more of a mix, they could have both, especially if they can move in where there is relative paucity of grocery stores, before Metro has moved in. I don't think Loblaws will have T&T as the primary supermarket even in Asian-heavy neighbourhoods, because such neighbourhoods in Canada usually still have a relatively mixed population, and Loblaws is the primary brand anyway. However, Loblaws could still expand the number of T&T stores in the country.
As for No Frills, these are associated with Loblaws, but they are franchises. Some are nice, but some are quite grungy. I wish the No Frills stores were more consistent in their cleanliness. The Superstores are usually relatively nice, but I'm not as big of a fan of them because I'm not really interested in buying underwear when I go shopping for artichokes.
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Jonny5
Senior Member
So if Loblaws has so much cash now, can we get a move on with Maple Leaf Garden's? Wait... please don't turn it into a T&T....
prosperegal
Senior Member
My take on this:
1) There goes another indy..
..just wait, Metro buys Safeway out west; and Longos comes together with Jim Pattison's company out west (aka Save-On-Foods, Overwaitea Foods, PriceSmart Foods, Cooper’s Foods, Urban Fare and Bulkley Valley Wholesale) and that's it; 4 major suppliers left.
2) As long as we have to permit this; I hope Loblaws learns from T&T about prepared foods. T&T is miles ahead of Loblaws in that department, better sushi, of course, but better meals, better desserts etc.
While they're at it, they can learn to carry goose, duck, goose eggs, quail eggs and assorted other interesting fare that T&T carries.
I think some of my relatives might want to see dow fu fah at Loblaws (a tofu-based dessert).
slowtyper
New Member
I've been buying this at loblaws for years. (the prepackaged kind!) Well, superstore actually. Loblaws definitely has it also.
afransen
Senior Member
Sounds like they plan to operate it as a separate business, and plough in some capital to expand it.
Basshats
Active Member
My take on this:
1) There goes another indy..
What qualifies as an independent?
T&T was jointly owned by Uni-President Enterprises Corporation (T'ung-i Chi-yeh - a big Taiwanese company) and Tawa Supermarkets (99 Ranch Market in California). Thus the name: T & T.
I believe Uni-President Enterprises Corporation is bigger than Weston.
Eug
Senior Member
That would be nice to see. And I'd be happy to be able to buy Prez's Choice stuff and other non-T&T type stuff at T&T too.
What would even be better is to get better sushi at Loblaws.
afransen
Senior Member
Eug
Senior Member
It seems you may be correct.
http://www.financialpost.com/news-sectors/story.html?id=1824198
"The ethnic market opportunity in Canada is vast," president Allan Leighton told analysts during a conference call Friday to discuss the retailer's second-quarter fiscal results. "Today we have a relatively small share. Our objective is to be the number one player. ... There is a huge amount of learning we can get from [T&T] in terms of [product] ranges and sourcing, and it should help our core stores too."
They also do confirm they really wish to push the expansion of T&T.
"We think it's a great acquisition, a good deal and it's accretive to earnings in the first year," said Brian Yarbrough, a retail industry analyst at Edward Jones. "The ethnic food portion of overall grocery is growing much faster than traditional grocery. This is also a growth avenue for the future for Loblaw - [T&T] is just 17 stores, but it could be nationwide."
After observing the changes in Loblaws/Superstore/No Frills, I assumed their approach would be more heavily expand the "ethnic" portions of their stores independently. I didn't think they'd actually buy a chain like T&T, but they did. I look forward to seeing what comes of this.
AKS
Senior Member
Well, the Canadian chains have a lot to learn about stocking up for Asian products. T&T would be able to help them learn what type of products are popular for Asians. T&T is Canada's first attempt at copying already popular types of supermarket in HK like the Wellcome stores. T&T is still a bit behind but there's potential. Also, maybe T&T has more connections to get products at cheaper prices? Because although T&T isn't exactly cheap. But some of the T&T sale products are cheaper than Loblaws sale product for the same item.