Jean Coutu's marketing initiatives help fuel Q1

LONGUEUIL, Quebec — Canada’s Jean Coutu Group reported on Tuesday a lift in first quarter retail sales thanks, in part, to its marketing initiatives, Francois Coutu, president and CEO, told analysts during its quarterly conference call.



“Total sales have achieve solid growth in a market which still remains very competitive,” Coutu told analysts.



During the quarter, retail sales increased 4.4% to Canadian $1.06 billion. On a same-store basis, pharmacy sales increased 4.2% during the quarter as front-end sales increased 2.7%.



Net profit during the quarter totaled C$50.6 million, or 27 Canadian cents per share, compared with C$54.1 million, or 29 Canadian cents per share, in the year-ago period. According to Coutu, the decrease is mainly due to a tax provision of C$4.7 million recorded during the first quarter.



During the quarter, the pharmacy retailer put forward several marketing initiatives, such as weekly flyers announcing lower prices. The company also launched additional promotions and contests that were supported by advertising campaigns on TV, radio, weekly flyers and social media.



“[The] increase in sales were significant during these events,” Coutu told analysts.



Coutu noted that, again this year, the company served as the Parents and Kids Fair sponsor in Montreal and Quebec in April and May. During the event, the company promoted its services and products and distributed more than 15,000 kits for new mothers at both the fair and in its stores.