Loblaw Cos. Ltd. discount banners outperformed conventional stores in the second quarter as the company focuses on discount store expansions while consumers seek more value for their money, the company said on Thursday when it released its earnings results for the quarter ending on June 20.

Chief executive Per Bank said the consumer environment remains consistent with past quarters, as customers look for value using promotions and make choices across the basket to manage their budgets.

He said customers are responding to retailers that understand and anticipate their needs, choosing where they make their purchases and spend their hard-earned dollars and rewarding retailers that offer great value and competitive offers.

“Our discount banners remain very well-positioned. Maxi and No Frills continue to help customers stretch their budgets and we continue to see strong customer response as we add capacity in underserved markets,” Bank said during Thursday’s earnings call.

Comparable sales for discount banners Maxi and No Frills were close to a four per cent growth, chief financial officer Richard Dufresne said, as the retailer continued to gain share in hard discount, reflecting sustained consumer demand for value and greater access discount stores.

Dufresne added that discount stores remain well-positioned for customers focused on value, supported by strong execution in both existing and new stores, as recent store openings deliver double-digit same-store sales growth.

Bank said, for example, it opened its second Maxi store in New Brunswick, where they converted No Frills and saw sales more than double under the new Maxi banner banner, a bit better than they expected.

During the quarter, the company opened a total of 14 stores, including seven hard discount stores, three drug stores and the first T&T location in California.

Loblaw reported a total revenue of $15.27 billion in the second quarter, up 4.1 per cent from the same period last year.

Its net earnings increased 5.2 per cent to $751 million in the quarter ended June 20, and diluted net earnings was up 8.5 per cent to $0.64 per share. On an adjusted basis, net earnings were $774 million, up 8.6 per cent, and adjusted diluted net earnings were $0.66 per share, up 11.9 per cent.

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Food retail sales grew 3.3 per cent to $10.6 billion, which Loblaw said was due to higher customer traffic and basket size, and e-commerce sales growth.

Drug retail sales were up 6.1 per cent to $4.43 billion, driven by continued strength in specialty and chronic prescriptions, as well as the beauty and over-the-counter categories.