Loblaw Companies Ltd. reported increased participation in its PC Optimum loyalty program, with customers redeeming over a billion dollars' worth of points in 2024. This strong engagement led Loblaw to adjust its financial liabilities, incurring a non-cash charge of $129 million. Despite a decrease in quarterly earnings year over year, Loblaw is capitalizing on a heightened focus on domestic products amid potential trade wars. The introduction of a ‘swap and shop’ feature in the loyalty app has also resulted in increased sales of Canadian products.
We increased this liability based on our expectation that more customers will redeem more of their points going forward, reflecting what's happening in our stores.
As we continue to expand this feature, we are already seeing a significant uplift in sales [of] products identified as prepared in Canada.
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