Some people may be cutting back on non-essential or big-ticket purchases, but economic anxiety is not showing up in the supermarket aisle, according to executives at Sobeys parent Empire Co. Ltd. EMP-A-T

The grocery retailer beat analysts’ estimates for profit growth in the fourth quarter, and reported that customer behaviour is becoming less cautious, a trend that works in its favour.

For example, shoppers are visiting fewer stores hunting for deals than they were at this time last year, adding more to their baskets during each visit, and “trading up” by buying more fresh products, president and chief executive officer Michael Medline told analysts on a conference call Thursday.

“What we’re seeing in our customer behaviour is tough to reconcile against published consumer sentiment, which is near its lowest level in many years,” Mr. Medline said.

The retailer also noted a decrease in the number of items sold on promotion in its stores – a trend that “differs from the other two” Canadian grocers, Metro Inc. and Loblaw Cos. Ltd., wrote Bank of Nova Scotia analyst John Zamparo in a note on Thursday.

The Stellarton, N.S.-based company reported that sales grew in both its discount FreshCo stores, as well as at full-service grocery stores such as Sobeys, Safeway and IGA. The retailer took market share away from competitors in the quarter, Mr. Medline said.

Same-store sales – an important industry metric that tracks sales growth not tied to new store openings – were up 3 per cent in the quarter ended May 3, compared to the same period last year.

Empire and other Canadian grocers have also benefited from the “Buy Canadian” sentiment among shoppers who have bristled against U.S. President Donald Trump’s tariffs on Canadian imports and musings about annexing his northern neighbour. Customers are both buying more Canadian products, and choosing domestic retailers over competitors with U.S. parent companies, Mr. Medline said.

“We believe that much of this customer shift will stick,” he said on the call.

In April, Loblaw Per Bank predicted that “maybe one-third” of that behaviour would prove to be permanent, and added that customers continue to prioritize “price and quality.” But while Empire saw buy-Canadian behaviour wane slightly in late April and early May, Mr. Medline stressed during the call that he expects many people who have made the change will not go back.

“I don’t think the mindset of Canadians is switching very quickly from how they felt at the beginning of the year,” he said.

Empire reported net earnings grew to $173-million or 74 cents per share in the fourth quarter, compared to $149-million or 61 cents per share the prior year. That exceeded analysts’ expectations of $164.5-million or 71 cents per share, according to the consensus estimate from S&P Capital IQ.

The company’s share price rose more than 6 per cent in trading on Thursday morning following the earnings report.

The company also announced a 10-per-cent increase in its quarterly dividend paid to shareholders.

Fourth-quarter sales grew to $7.6-billion, up 3 per cent compared to the prior year, driven by strong performance at grocery stores, partly offset by lower sales at the company’s gas stations as fuel prices fell.

The expansion of the Farm Boy and FreshCo store chains contributed to profit growth, as did initiatives aimed at reducing “shrink,” an industry term for products that are lost before they can be sold – such as through theft or spoilage.

Empire plans to continue opening new stores and renovating existing locations in the coming year, announcing on Thursday a target of $850-million in capital expenditures this fiscal year. Roughly half of that investment will be directed to that effort, including a 1.5-per-cent increase in square footage, as the company sees opportunities to grow and “put pressure” on competitors, Mr. Medline said.

This time last year, Empire made the decision to pull back on the pace of expansion of its Voilà e-commerce service, saying the market for online groceries in Canada was smaller than expected. After ending its exclusive partnership with technology provider Ocado Group PLC earlier than planned, Empire launched partnerships with third-party delivery companies Instacart and Uber Eats, which have contributed to growth. Online sales rose by 80.2 per cent in the quarter.

The partnerships have been complementary to Voilà’s existing business, attracting new and younger customers to the service, chief operating officer Pierre St-Laurent said on the

The company continues to cut costs in its online service as it seeks to reach profitability. Construction of a fourth e-commerce distribution centre, underway in Vancouver, remains on hold, and will resume “once e-commerce penetration rates in Canada increase,” according to a press release issued on Thursday.