Loblaw’s pricing for its main products – groceries – vary based on the type of product and location. That being said, the no name brand and President’s Choice brand products are known to be priced lower than many other brands, and these are the brands and pricing that keep customers coming back to Loblaw stores.
Some fixed costs for Loblaw are the mortgages on the stores, the salaries of executives, and insurance costs.
Some variable costs are the cost of produce, the transportation costs to get the products to the stores, labour, fuel, and utilities
Loblaw saw an increase in revenue in 2011 from the previous year, reporting an increase of revenue up 1.3% from last year. Their operating margin is the same as last year at 4.4%.
Loblaw saw an increase in revenue in 2011 from the previous year, reporting an increase of revenue up 1.3% from last year. Their operating margin is the same as last year at 4.4%.
(Retrieved from http://loblaw.ca/Theme/Loblaw/files/4.%20Investor%20Centre/Financial%20Reports/2011/Q4/Loblaw-2011-Annual-Report.pdf August 31, 2012).
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