METRO

The primary driver here for Loblaw is discount presence, which is one of the core theses with it being on our Foundational Stock list. More and more consumers are shifting to discount type stores. Look at something like a Dollarama as well.

Loblaw has captured the discount market of groceries stores here in Canada very well with places like No Frills. Companies like Metro and Empire are a bit behind Loblaw in this regard and are only now starting to ramp up discount level chains to try and accommodate budgeting Canadians, which is unfortunately a large portion of our population due to the cost of living crisis here. Meanwhile, Loblaw has had a sizable and expanding discount presence for a while now. This is why you're seeing the large outperformance.