What caused Loblaw.TO share price to increase over the past 6 months

Loblaw.TO’s share price has increased over the past 6 months due to several interrelated factors:

• Strong financial results: Loblaw reported robust revenue growth (up 5.2% year-over-year in Q2 to $14.67 billion), higher adjusted EBITDA (+7.4%), and a significant increase in adjusted EPS (+11.6%). Net earnings per share rose 60% from the previous year. These results consistently beat analyst expectations and fueled investor confidence.
• Expansion of discount and private label offerings: The company rapidly expanded its Hard Discount store format and No Name brand, which attracted cost-conscious consumers amid ongoing inflation risks. This strategy helped increase customer traffic, unit sales, and overall basket size, driving same-store sales growth and improving market share.
• New store openings: Loblaw opened 20 new stores and 23 new pharmacy clinics year-to-date, with plans to open approximately 80 new stores in 2026. The expansion supported top-line growth and long-term earnings prospects.
• Digital and operational innovations: The company invested in AI-driven initiatives and a new distribution center, improving efficiency and supporting growth in both retail and pharmacy operations.
• Positive market sentiment: Following the strong results, Loblaw’s stock price surged above its 200-day moving average and approached a 52-week high. The announcement of a 4-for-1 stock split added confidence in sustained growth.
• Resilience against inflation and tariffs: Despite the risk of inflation and tariffs impacting Canadian consumers, Loblaw’s value-focused strategy and market agility positioned it as a reliable investment for navigating an uncertain macro environment.

In summary, Loblaw’s share price climbed due to solid earnings, accelerated store expansion, successful discount strategies, and technological investments, all reinforced by positive investor sentiment and strategic positioning for inflationary risks.