Sobeys news

As Sobeys reports its first quarter results we look at some of the issues which impacted its performance. Moved too quickly to change processes following success with systems integration Sobeys’ first quarter sales increased by 0.4% to $6.2bn, with same-store sales (ex-fuel) up 1.2%. Adjusted net earnings fell by 5.7% $121.7m, with the retailer noting the integration of Safeway having a n...

With Canada’s ethnic sector offering significant growth potential, Sobeys launches a new format targeted at South Asian shoppers. Targeting South Asian shoppers The new concept store, ‘Chalo! FreshCo’ builds upon the core FreshCo format which Sobeys launched in 2010. This was part of the retailer’s play into the ethnic sector, where the offer contains a large number of ethnic products. T...

As Walmart becomes the latest retailer to launch a grocery ecommerce operation in Canada, we review the prospects for the channel. Enabling Walmart to build share in food Walmart’s launch of an 11 store test for grocery pick-up in Ottawa builds on its existing ecommerce operation which to date has been focused on non-food. The addition of fresh foods and grocery ranges complements the con...

While retailers and manufacturers continue to compete on price, there are companies who are looking to deliver added value for shoppers without cutting prices. We consider five of the levers that are being used to offer added value, which we expect to see more of in 2015 and beyond. This article was written by Harriet Cohen,...

Co-op Atlantic has announced plans to divest its retail and fuel operations in Canada to Sobeys, subject to membership approval. Sobeys will be seeking to lift performance of under-performing stores Co-op Atlantic currently operates 173 outlets under a range of banners in Atlantic Canada, including company-owned and franchised operations. For Sobeys, the acquisition would complement its...

Ontario has put in place  plans to enable grocery stores to sell beer. This provides retailers with an opportunity to grab share in a major category, which could also be an important traffic driver. First stores to be up and running by Christmas Beer sales in Ontario are currently driven almost exclusively through The Beer Store, which is owned by Molson Coors, Anheuser–Busch InBev and S...

Following the launch of new ecommerce initiatives by two of Canada’s leading grocery retailers last year, we assess how the channel is likely to evolve in the year ahead. Rapid sales growth Grocery ecommerce is one of the least developed channels in the Canadian grocery market. Although there have been a number of retailers offering this service on a regional or city bas...

With Sobeys completing the acquisition of Canada Safeway just over a year ago, we take a look at the impact on the business to date. 1. Lifting sales and profitability As a major acquisition for Sobeys, the Safeway business is having a significant impact on the retailer’s financials. In the second quarter, total sales increased by 35.8% to $6.0bn, while net earnings from food retailing wer...

CVS Caremark has acquired Miami-based Navarro Discount Pharmacy chain, the largest Hispanic-owned drugstore chain in the U.S. Stores to remain under Navarro Discount banner The transaction, which is subject to regulatory approvals, includes Navarro’s 33 retail drugstore locations and Navarro Health services, a speciality pharmacy serving. The financial terms of the agreement were not disclo...

Empire Co. Ltd., owner of Canadian supermarket chain Sobeys, has announced it will close 50 Sobeys stores, mainly in Western Canada, in order to improve profitability. Review revealed underperforming stores The stores are being shut after a review of its store network last Fall revealed a number of underperforming stores. The stores represent 1.5 million square feet of floor space, 3.8% o...