Winnipeg Free Press - ONLINE EDITION

North West hub in Winnipeg saves Baffin Islanders money

Company's Q2 profits up 21.6 per cent

  • Print

WINNIPEG — The North West Company has revamped the way it ships products to its stores on Baffin Island, resulting in substantial savings for island residents, the company said today.

The Winnipeg-based discount department store chain said it recently began shipping products directly from its Winnipeg distribution centre, rather than from its distribution hub in Ottawa.

The change will result in initial savings of $600,000, the company said. And those savings will be passed on to its customers in the form of price reductions of 15 per cent or more on 175 key products sold in its 12 Northern and NorthMart stores on the island.

"These price reductions are in addition to $4 million in freight savings that have been directly passed on through to our customers in Nutrition North Canada-eligible communities over the past 12 months," said Michael McMullen, NWC’s executive vice-president of northern Canada retail.

Nutrition North Canada is a federal program which provides subsidies to help reduce the cost of food sold in remote northern communities.

The North West Company also reported a 21.6 per cent jump in profit for the second quarter of the year.

The department store chain said it posted net earnings of $18.3 million, or 38 cents per share, for the three-month period that ended on July 31.

That compared to net earnings of $15.0 million, or 31 cents per share, for the same period last year.

Sales for the quarter were up by a more modest 2.9 per cent to $383.8 million from $372.9 million a year earlier.

"This was a strong quarter for delivering on key initiative work," said company president and CEO, Edward Kennedy.

"We were in-stock and ready for business at a higher level than ever before, while our perishable categories continued to benefit from improved ordering and lower waste. Favourable weather in our southern Canada stores also helped to offset weaker seasonal income conditions in more remote markets."

The North West Company is a leading retailer of food and everyday needs to rural communities and urban neighbourhoods in Canada, Alaska, the South Pacific and Caribbean. It operates under the retail Banners of Northern, NorthMart, Giant Tiger, AC Value Center and Cost-U-Less, and has annual revenues of approximately $1.5 billion.

murray.mcneill@freepress.mb.ca

History

Updated on Thursday, September 6, 2012 at 1:09 PM CDT: updates with info on jump in profit, comments from CEO

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

7 questions with Craig Kielburger before We Day Manitoba

View more like this

Photo Store Gallery

  • Jia Ping Lu practices tai chi in Assiniboine Park at the duck pond Thursday morning under the eye of a Canada goose  - See Bryksa 30 Day goose challenge Day 13- May 17, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)
  • A golfer looks for his ball in a water trap at John Blumberg Golf Course Friday afternoon as geese and goslings run for safety- See Joe Bryksa’s 30 day goose challenge- Day 24– June 15, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)

View More Gallery Photos

Poll

What's your favourite Halloween treat to hand out?

View Results

Ads by Google