MMR: Mass Market Retailers, July 13, 2020

SUPERMARKETS Supermarket Current Close 6 29 20 Previous Close 6 9 20 Change Ahold Delhaize 2709 2674 131 Kroger 3413 3292 368 Loblaw 6720 6599 183 Sobeys 3360 3009 1167 DRUG STORES Drug Store Current Close 6 29 20 Previous Close 6 9 20 Change Amerisource 1 9899 9990 091 Cardinal Health 2 5197 5765 985 CVS 6442 6937 714 McKesson 3 15177 16117 583 Rite Aid 1731 1436 2054 WBA 4232 4528 654 1 Good Neighbor Pharm 2 Medicine Shoppe 3 Health Mart MASS RETAIL STOCK UPDATE DISCOUNTERS Discounter Current Close 6 29 20 Previous Close 6 9 20 Change Costco 30159 30555 130 Dollar General 19002 18625 202 Dollar Tree 9367 9258 118 Target 11857 12072 178 Walmart 11906 12135 189 Figures are in Canadian dollars MONEY MMR MONEY NEWS PUBLIX OKS DIVIDEND Publix Super Markets Inc s board of directors declared a quarterly dividend of 32 cents per share on its common stock The dividend will be payable on August 3 either through direct deposit or mailed as a check to stockholders of record as of the close of business July 15 AHOLD DELHAIZE STOCK Ahold Delhaize repurchased 250000 of Ahold Delhaize common shares in the period from June 22 to June 26 The shares were repurchased at an average price of 2389 2688 per share for a total consideration of 597 million 672 million The repurchases were made as part of the 1 billion share buyback program announced on December 4 2019 The total number of shares repurchased under this program to date is 23696050 common shares for a total consideration of 5149 million DIVIDEND FROM INGLES Ingles Markets Inc s board declared a cash dividend of 165 cents per share on all its Class A Common Stock and 15 cents per share on all its Class B Common Stock This is an annual rate of 66 cents and 60 cents per share respectively Dividends on both the Class A and Class B Common Stock are payable on July 16 to all shareholders of record on July 9 KROGER RAISES PAYOUT Kroger Co s board of directors approved a dividend increase from 64 cents to 72 cents per year The next quarterly dividend of 18 cents per share will be paid on September 1 to shareholders of record as of the close of business on August 14 Krogers quarterly dividend has grown at a double digit compound annual growth rate since it was reinstated in 2006 This is 14th consecutive year of annual dividend increases BIG LOTS SEES Q1 GAINS Big Lots Inc reported net income of 493 million or 126 per diluted share for the 2020 first quarter ended May 2 That compares to an adjusted net income of 370 million or 92 cents per diluted share non GAAP for the first quarter of fiscal 2019 As a reminder on March 30 2020 the company withdrew its previously communicated guidance for fiscal 2020 as a result of the uncertainty stemming from the COVID 19 pandemic Krogers Q1 Sales Rise by 191 CINCINNATI Kroger Co said fiscal first quarter sales jumped 191 to 42 billion as shoppers shifted to eating at home during the coronavirus pandemic Krogers digital business was a standout in the quarter ended May 23 with online sales increasing 92 I am proud of our associates who stepped up when we were called to be there for our customers communities and each other Rodney McMullen Krogers chairman and chief executive officer said in a statement As America enters the next phase of the pandemic we know that our associates will continue to rise to meet the challenge delivering Fresh for Everyone and helping our customers communities and America emerge even stronger Kroger last fall adopted a new logo and brand transformation campaign celebrating its foodrich heritage centered on the slogan Fresh for Everyone There are still many unknowns related to the long term impact of COVID 19 Same store sales excluding fuel increased 19 in the first quarter helping produce an operating profit of 13 billion Kroger said it spent more than 830 million in the quarter to support and safeguard associates customers and communities Included in that total are thank you bonuses paid to frontline workers The company also said it had allocated 236 million to multi employer pension plans in the first quarter Same store sales excluding fuel increased 19 in the first quarter The pandemic has dramatically changed the outlook for food retail in 2020 said Gary Millerchip Krogers chief financial officer We continue to monitor evaluate and adjust our plans to address the impact to our business he said There are still many unknown factors related to the long term impact of COVID 19 that could influence our financial results for the remainder of 2020 These include Continued investments to help Krogers customers and employees Uncertainty surrounding consumer behavior restrictions and what will be the new normal Potential long term shift in customers eating more food at home In recognition of these factors it is difficult to predict specific outcomes and as such Kroger is not reaffirming or providing new 2020 guidance Millerchip said While we expect to exceed the outlook shared in our April 1 business update for identical sales without fuel adjusted FIFO operating profit adjusted EPS and adjusted free cash flow the company is not able to forecast the extent of such upside for the reasons mentioned above McMullen offered an update on the retailers Restock Kroger program the three year plan instituted in 2017 to redefine the grocery shopping experience and create shareholder value by serving America through food inspiration and uplift Under Restock Kroger we have made significant investments over the last several years to establish a seamless digital ecosystem to strengthen Our Brands and our personalization GNC Holdings In Chapter 11 PITTSBURGH GNC Holdings announced last month that it will file for Chapter 11 protection in the U S Bankruptcy Court The announcement was made just seven days before the company faced paying a debt of some 900 million GNC says it plans to reorganize but the company and its lenders have also agreed to sell the business via a court supervised auction Harbin Pharmaceutical Group Holding Co an affiliate of GNCs largest shareholder has also agreed to the sale The agreement suggests a 760 million purchase price but the auction could generate a higher price GNC has begun marketing the company IVC which is GNCs largest vendor and a joint venture partner is working with the company to ensure a continued supply of products and advance the proposed sale of GNCs business With the support of its lenders and key stakeholders GNC says it expects to confirm a stand alone plan of reorganization or consummate a sale that will enable the business to exit from this process in the fall of this year Over the past year GNC has been executing a store portfolio optimization strategy to close underperforming stores while continuing to invest in omnichannel and brand strategies to better meet consumer demand In the meantime GNC and all of its subsidiaries remain open To page 15 Rite Aids First Quarter Revenue Advances 122 CAMP HILL Pa Rite Aid Corp said revenue rose 122 in its first quarter on increased sales in both its retail pharmacy and pharmacy services segments The coronavirus pandemic had a 30 million net negative impact on first quarter EBITDA earnings before interest taxes depreciation and amortization Rite Aid said But COVID 19 testing helped drive traffic to its stores Revenue surged 262 to nearly 2 billion in its pharmacy services segment which includes its pharmacy benefits management business Much of the increase was fueled by increased Medicare Part D membership according to the company Rite Aid said it ended the quarter with 252000 more Medicare Part D members than it had at the close of the year earlier period Sales at its retail pharmacy segment increased 67 to 41 billion in the first quarter largely on the strength of front end sales which were up 16 year on year as shoppers stocked up on cleaning supplies over the counter medicines alcohol and personal hygiene merchandise Rite Aid posted a net loss from continuing operations of 777 million compared to 993 million in the year earlier period The company said this years improvement was primarily due to a LIFO last in first out credit an income tax benefit and lower costs related to its ongoing restructuring Teams quickly implemented safety measures I couldnt be more proud of how our teams have worked tirelessly to support and care for our communities during these unprecedented times while continuing to push forward in achieving our vision for the future Heyward Donigan Rite Aids president and chief executive officer said in a June 25 earnings statement Our retail pharmacy teams responded to the COVID 19 crisis by taking immediate action to maintain our supply chain and stay in stock enhance our digital experience quickly implement safety measures keep our stores open and provide outstanding service all of which helped us drive doubledigit front end sales growth and gain retail market share Donigan noted that Rite Aids full leadership team is now in place in the pharmacy services segment and has made excellent progress in integrating the To page 15 MMR July 13 2020 13