Loblaw takes PC Optimum hit as customers cash in more points [Video]

Loblaw Companies Ltd. is seeing more participation in its popular PC Optimum loyalty program — and more points being redeemed at checkout.

Customers redeemed more than a billion dollars’ worth of Optimum points in 2024, according to Loblaw’s annual report. There are more than 17 million active Optimum users.

The strength of the program caused the grocery retailer to take a non-cash charge of $129 million in its fourth quarter that drove profits lower year over year, as the company re-evaluated the program’s liability for outstanding Optimum points to reflect the higher use.

“We increased this liability based on our expectation that more customers will redeem more of their … points going forward,” said chief financial officer Richard Durfresne on a conference call discussing the results.

“What it reflects is that more and more consumers are liking PC Optimum, are using it, and so from our perspective … we’re more …