LBLCF - Loblaw: Headwinds Continue
Investment Thesis
Loblaw (LBLCF) ((TSX:L)) is the largest grocery store chain in Canada. The company is facing several challenges: (1) minimum wage hikes in several provinces in Canada, (2) generic drug reform that took effect on April 1, 2018, (3) higher transportation costs, and (4) strong competitions. The company has cost-saving initiatives to help mitigate these headwinds. In addition, the company also has a strategy to grow its e-commerce business to defend and grow its market share. Its shares are currently undervalued against its peers and its own historical average.
Loblaw’s Headwinds
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