The outbreak of COVID-19 has spurred on many governments to take extraordinary measures to contain the pandemic. Many businesses have been hit hard by the slew of economic shutdowns. However, grocery retailers remain one of the top defensive options for investors.
Sales have surged at grocery retailers and big box stores as consumers have scrambled to get ahead of panic buying in this uncertain environment.
Metro (TSX:MRU) is a Montreal-based grocery retailer with a significant footprint in Quebec and a growing presence in Ontario. Shares of Metro have climbed 8.7% month-over-month as of mid-afternoon trading on March 31. Earlier this month, the company announced an over $800 million investment in new Montreal and Toronto facilities.
Loblaws (TSX:L) is the largest grocery retailer operating in Canada. Its stock has increased 4.4% over the past month. Loblaws and other grocery retailers have seen online purchases explode in recent weeks due to fears over in-store shopping with social distancing measures in place.
Metro and Loblaws have both announced wage hikes for their employees amid this crisis. Both stocks also offer modest quarterly dividend payouts.
Empire Company (TSX:EMP.A) is yet another grocery retailer that owns and operates brands like Sobeys, Farm Boy, IGA, and many others. Shares of Empire have dropped 8.8% month over month. Earlier this month, it announced a significant sales bump across its stores.
These grocery retailers are worth targeting as defensive stocks during this turbulent period.
