Loblaw said the change is a response to the pending retirement of Robert Sawyer, Loblaw’s chief operating officer, who has been running the retail business for two years. Weston took over as Loblaw CEO in 2021 and recruited Sawyer, who was previously COO of Metro Inc. and CEO of Rona Inc., out of retirement. Loblaw credited Sawyer with delivering “two years of superb performance.” The company’s adjusted net profits jumped about 18 per cent year over year in 2022, to $2.3 billion.

With Sawyer slated to return to retirement at the end of this year, Loblaw launched a search for a “slightly younger version of Robert” to take over the business, chief financial officer Richard Dufresne told analysts.

“If you could find a Robert Sawyer who was 55, that would be an ideal combination. In Per, we think we found that,” Weston said. “This is not a sharp left turn. This is about evolution and building.”

Bank’s new title, as CEO, could represent a shift in power dynamics at Loblaw. Traditionally, Loblaw hasn’t had a chief executive, only a president. Before Weston took over as president in 2021, he served as executive chair and the company’s president reported directly to him, he told analysts. But as CEO, Bank will report to the board.

“There’s important symbolism in that,” Weston said.

But he said he still expects the existing dynamic to continue, where he and the head of Loblaw are in lockstep.

“I represent the controlling shareholders as the key executive. I’ll be the chief executive of the holding company,” Weston said. “It’s essential that there’s a high level of alignment between myself and any chief executive … and so I would expect that dynamic to continue.”

Loblaw spokesperson Catherine Thomas said the recent drama around inflation had nothing to do with Weston’s decision.

“That would be an entirely wrong way to look at it,” she said, adding that the executive search started in August 2022.

Irene Nattel, an analyst at RBC Dominion Securities Inc., said the management changes “should come as no surprise” to Loblaw investors. In a note to clients, she said Sawyer had already extended his tenure by about a year longer than planned.

“In Mr. Bank,” Nattel said, “Loblaw has found another strong operator.”

Loblaw’s network of more than 2,400 stores and 190,000 employees includes Shoppers Drug Mart, No Frills, Provigo and Real Canadian Superstore.