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FreshCo

FreshCo is a Canadian chain of supermarkets that emphasizes affordable groceries with a focus on fresh produce, meat, seafood, dairy, and pantry staples. Owned by Inc., a of , FreshCo was launched in March 2010 as a to redefine low-price food retailing, initially rebranding existing Price Chopper stores in . As of September 2025, the chain operates 156 locations across multiple provinces, including significant expansions in such as , , and . Sobeys Inc., headquartered in Stellarton, Nova Scotia, has over 115 years of experience in the Canadian food retail industry and manages a portfolio of banners including Safeway, IGA, and FreshCo, totaling more than 1,600 stores nationwide. FreshCo distinguishes itself through weekly flyer deals, member-exclusive pricing via the SCENE+ loyalty program, and a commitment to highlighting Canadian-made products to support local economies. The chain's model prioritizes value-driven shopping experiences, offering hot prices on essentials while maintaining quality standards for fresh items, which has contributed to its growth amid competitive grocery markets in . In recent years, FreshCo has accelerated its footprint in underserved regions, with plans for additional openings in 2025 to double prior expansion rates.

History

Launch and Early Development

FreshCo was launched by Inc. in March 2010 as a discount supermarket banner designed to compete with major players in the low-price grocery segment, including and Loblaw's . , a longstanding Canadian grocery retailer founded in 1907, positioned FreshCo to offer a distinctive approach to discount retailing by combining affordable prices with an emphasis on fresh products. The inaugural stores opened on May 12, 2010, with eight locations converted from existing Price Chopper outlets in the communities of and , . These early FreshCo stores prioritized low prices on fresh produce, meat, and everyday essentials, with layouts designed to place the produce department prominently at the entrance to create an inviting first impression for shoppers. Sobeys invested in this rebranding to appeal to value-conscious consumers in urban and suburban Ontario markets, particularly in diverse areas with high proportions of new Canadians, by promising a more appealing discount shopping experience than competitors.

Expansion Across Canada

FreshCo began its expansion beyond Ontario into Western Canada in April 2019, opening its inaugural store in the region at a former Safeway location in Mission, British Columbia, on April 25. This marked the discount grocery chain's initial foray westward, building on its established presence in Ontario since its 2010 launch as a foundation for national scaling. The Mission opening was swiftly followed by additional stores, including two in Winnipeg, Manitoba, on May 2, with a total of 12 more locations planned across British Columbia, Manitoba, and Saskatchewan for the remainder of 2019 to capitalize on demand for affordable fresh food options. The expansion accelerated through conversions of underperforming stores, aligning with Empire Company Limited's (' parent) five-year strategy to rebrand approximately 25% of its conventional banners into the discount-oriented FreshCo format. By the end of fiscal 2022, this effort had resulted in 16 stores in , six in , five in , and 12 in , enhancing the chain's footprint in competitive markets. These transformations focused on streamlining operations while retaining emphasis on fresh produce and value pricing to challenge rivals like . In June 2020, Empire announced further growth, including the chain's entry into with two initial locations in —Heritage and a new-build in Tamarack—set for opening in 2021, alongside four additional sites. This built on momentum from , where 28 FreshCo locations had been confirmed by mid-2020 as part of the broader plan targeting around 65 stores to strengthen discount positioning. The influenced the rollout by heightening consumer demand for budget-friendly groceries, prompting Empire to maintain aggressive expansion despite logistical challenges, with 18 stores opened in by the end of fiscal 2020. This acceleration supported ' efforts to meet surging needs for accessible during economic uncertainty, contributing to sustained in the discount segment.

Key Milestones and Adaptations

In 2015, introduced the ! FreshCo format as its first discount grocery banner tailored specifically to South Asian communities, launching the inaugural store in , , to address the needs of this growing demographic by offering culturally relevant products in a one-stop shopping environment. During the from to 2022, FreshCo, under ' operations, implemented enhanced sanitation protocols across its stores, including increased cleaning frequencies, installation of protective barriers at checkouts, and mandatory masking for staff and customers to prioritize health and safety. Simultaneously, the chain focused on strengthening essential supply chains by boosting orders, partnering with local and international suppliers—including restaurants—to maintain stock levels of staples like produce and pantry items amid surging demand and disruptions. In 2024, Empire Company Limited, Sobeys' parent, announced a major investment plan to renovate 20% to 25% of its overall store network over the next few years, with FreshCo locations included to modernize layouts and improve customer experience through better merchandising and energy-efficient designs. This initiative coincided with deeper digital integration efforts, such as the expansion of the FreshCo mobile app for accessing weekly flyers, personalized deals, and shopping lists, alongside integration with Sobeys' Scene+ loyalty program to offer points on purchases and targeted promotions. FreshCo faced a conflict in 2016 when a small Ontario-based named Freshco (without the exclamation mark) publicly challenged the rebranding of ' former Price Chopper stores to FreshCo, citing potential customer confusion due to the similar names in the competitive grocery sector. The issue was resolved without formal litigation, as emphasized the distinct styling and market positioning of its FreshCo banner through targeted marketing campaigns that highlighted its discount focus and national presence. Demonstrating an ongoing commitment to , FreshCo began reducing plastic packaging in its produce sections in 2023 as part of ' broader Plastic Action Committee initiatives, which aimed to eliminate unnecessary single-use plastics by transitioning to alternatives like paper-based wraps and bulk displays while collaborating with suppliers to adopt recyclable materials across the produce category. In fiscal 2025, FreshCo continued its expansion, reaching 49 locations as of June 2025, with additional stores opened thereafter as part of plans to accelerate growth.

Corporate Structure and Ownership

Parent Company and Governance

FreshCo operates as a wholly owned of Inc., having been established under this structure since its launch in 2010 as part of ' strategy to enter the discount grocery market. Inc. itself is a wholly owned of , a publicly traded Canadian listed on the under the ticker symbol TSX: EMP.A. , headquartered in , , provides overarching corporate oversight for and its banners, including FreshCo, with strategic decisions guided by Empire's Board of Directors, which includes members of the founding Sobey family such as Frank Sobey, Paul Sobey, and Robert Sobey. In November 2025, Pierre St-Laurent was appointed President and CEO of and Inc. The governance framework for FreshCo is integrated into Sobeys' broader corporate structure, which traces its origins to 1907 when J.W. Sobey founded a meat delivery service in , , using a horse-drawn to serve local customers. Over the decades, expanded from this modest beginning into a national food retailer, acquiring regional chains and diversifying its portfolio to include over 1,600 stores operating under various banners across all 10 Canadian provinces. This growth positioned as one of Canada's two major national grocers, with Empire's board ensuring alignment on key priorities such as efficiency and market expansion. FreshCo adheres to Sobeys' ethical sourcing policies, which emphasize sustainable practices including standards, Fairtrade certifications, and a zero-tolerance approach to child labor in supply chains. Additionally, as part of ' corporate social responsibility initiatives, FreshCo participates in donation programs, notably through a national partnership with Second Harvest utilizing the Food Rescue App to redirect surplus to local charities, contributing to the diversion of approximately 30 million meals (over 30 million pounds) of annually across operations as of fiscal 2024. Financially, FreshCo's performance is consolidated within , the primary operating segment of , which reported total annual sales of C$31.3 billion for its ended May 3, 2025, reflecting growth from previous years and underscoring the scale of the integrated retail network. This financial integration supports Empire's strategic investments in its subsidiaries, including enhancements to discount banners like FreshCo.

Business Model and Operations

FreshCo operates under a in which individual stores are independently owned and operated by local entrepreneurs licensed by Inc., allowing franchisees to manage day-to-day activities while leveraging the parent company's branding, marketing, and operational support. This structure enables localized , such as adjustments to regional preferences, but retains substantial oversight, including on labor practices and supply terms, as affirmed in labor board decisions treating and certain FreshCo franchisees as a common employer in . In , a significant portion of stores follow this franchised approach, fostering within the discount grocery segment. The supply chain for FreshCo is closely integrated with ' logistics network, with products sourced primarily from the parent company's distribution centers located in and to ensure efficient delivery and cost control. This system supports an emphasis on fresh Canadian produce, often highlighted in store promotions, alongside a range of national brands and ' private-label offerings like the Compliments line, which comprises over 3,400 items designed for everyday affordability and quality. By centralizing through these facilities, FreshCo minimizes costs and maintains consistent availability of key staples across its locations. FreshCo's pricing strategy centers on everyday low prices for core grocery items, complemented by weekly flyers featuring targeted promotions on fresh produce, meats, and household essentials, all without requiring customer membership fees. This model positions the chain as a value-oriented alternative to conventional , appealing to price-sensitive shoppers through consistent savings on high-volume stock-keeping units (SKUs) and seasonal deals. The approach avoids high-low fluctuations, instead prioritizing and in budgeting. Many FreshCo locations employ a unionized , particularly in where UFCW Local 401 represents employees at multiple stores, covering roles from stocking to and negotiating collective agreements on wages and conditions. The employee structure typically emphasizes flexible part-time positions to align with peak , supplemented by specialized programs for fresh departments to uphold product quality and standards. This setup supports while addressing labor needs in a competitive environment. Technology integration at FreshCo draws from ' enterprise systems for real-time inventory management, enabling franchisees to track stock levels and reorder efficiently to prevent shortages. In 2022, the chain expanded capabilities, introducing click-and-collect pickup options at select stores via the Voilà by platform, initially focused on urban markets before broader rollout. The FreshCo mobile app, available since earlier expansions, further enhances operations by providing digital flyers, personalized deals, and order tracking to streamline both in-store and experiences.

Store Format and Offerings

Standard Store Design and Products

Standard FreshCo stores adopt an open, easy-to-shop layout optimized for space productivity and customer flow, emphasizing a cleaner and more enjoyable grocery experience compared to traditional formats. These stores typically range from 35,000 to 45,000 square feet, featuring wide aisles to facilitate navigation and prominent displays of fresh produce near entrances to highlight the chain's focus on quality perishables at low prices. Minimal decor is used throughout to maintain low operational costs while keeping the environment bright and functional. The product assortment in standard FreshCo stores prioritizes fresh items such as , goods, and , which form a core emphasis to differentiate the model by delivering perceived value in quality perishables. This is complemented by everyday staples, , and a strong multicultural selection, with own-brand products playing a key role in affordability and innovation across categories. Non-grocery sections are limited, typically excluding full-service pharmacies in favor of basic health and essentials integrated into the main grocery areas. Pricing strategies center on competitive everyday low prices, supported by the FreshCo Guarantee, which commits to matching the lowest prices from other on a weekly basis. offerings, under Empire's own brands, constitute a substantial portion of the inventory to enhance value without compromising variety. Customer experience is enhanced through practical features like options for faster transactions and in-store delis offering ready-to-eat meals to support convenient shopping. The model allows for minor local adaptations while maintaining this consistent format across locations. Sustainability efforts include a reusable program following the elimination of single-use plastic checkout bags across all banners by fiscal 2024, encouraging customers to adopt eco-friendly alternatives. Post-2020, stores have incorporated energy-efficient LED lighting retrofits as part of over 500 carbon-reduction projects, contributing to a 27% decrease in Scope 1 and 2 emissions since 2019.

Chalo FreshCo Variant

Chalo FreshCo represents a specialized variant of the FreshCo discount grocery banner, tailored specifically for South Asian consumers and launched by Inc. on August 27, 2015, in , . This marked ' inaugural effort to create a culturally adapted , with the name "" deriving from the and word meaning "let's go," inviting shoppers to explore affordably. Building on the core FreshCo model of low prices and everyday essentials, Chalo FreshCo differentiates itself through targeted adaptations that resonate with South Asian shopping preferences and culinary traditions. The stores feature a distinctive spanning approximately 50,000 square feet, evoking the vibrant atmosphere of an Indian street through colorful , open layouts, and thematic elements that facilitate intuitive navigation reminiscent of traditional markets. The brand's incorporates a lime and , symbols of fresh and spicy , enhancing the cultural appeal. Dedicated sections highlight spices, meat counters, and international imports, while bilingual English and /Hindi supports accessibility for diverse shoppers. These elements create an immersive environment that blends discount retail efficiency with cultural familiarity. Product offerings emphasize a significant South Asian focus, with inventory dedicated to ethnic groceries such as rice, bhindi (), lentils, and ready-made curries, sourced from both Canadian farms and international suppliers to ensure freshness and variety. This assortment complements standard FreshCo staples like produce, dairy, and household items, with an expanded fresh produce department catering to vegetarian preferences common in the community. Halal-certified meats and specialty imports, including spices and snacks from and , are prominently featured to meet dietary and cultural needs without inflating prices. Chalo FreshCo primarily targets South Asian communities in the , where demographic growth has driven demand for culturally relevant retail, while expanding to other multicultural hubs like and . Cultural promotions, such as seasonal displays for festivals like , further engage customers by aligning with community traditions. As of November 2025, FreshCo operates a limited network of approximately 14 locations, with the majority in and select sites in and , reflecting cautious growth focused on high-density South Asian populations. The chain emphasizes community integration through partnerships with local organizations, including food drives with Seva Food Bank and sponsorships of cultural events like festivals, to foster ties and support hunger relief initiatives. This approach has sustained the variant's niche appeal within the broader FreshCo portfolio.

Locations and Market Presence

Store Count and Growth

FreshCo has demonstrated consistent expansion since its launch, growing from 8 stores in in 2010 to over 100 locations across by 2022. As of September 16, 2025, the chain operates 157 stores nationwide, an increase from 125 stores as of September 2024 and reflecting approximately 92 stores in alone by 2019. This trajectory includes annual net additions of 10 to 20 stores, achieved through a combination of new builds and renovations of underperforming sites to align with the discount format. In late 2024, Empire Company announced plans for further openings in 2025, projecting more than 170 stores by fiscal 2026, with a focus on conversions in Western Canada to reach a 65-store milestone there. Driving this growth are market share gains in the competitive discount grocery segment, where FreshCo accounts for about 10% of ' overall portfolio of more than 1,500 stores. Closures remain minimal, with emphasis instead on targeted renovations to improve in legacy locations.

Geographic Distribution

FreshCo maintains its largest market presence in , where it operates 106 stores as of September 2025, representing approximately 67% of its total locations in . The majority of these are concentrated in the , including high-density neighborhoods in cities such as and , with additional stores extending westward to smaller urban centers like [Windsor](/page/W Windsor). This regional focus allows FreshCo to serve diverse, price-sensitive urban populations, particularly in areas with significant immigrant communities, where variants like ! FreshCo offer tailored multicultural products. In , FreshCo has established a footprint of 51 stores across four provinces as of September 2025. hosts 16 locations, primarily in Vancouver suburbs such as Mission and Aldergrove, while has 24 stores centered in major cities like and . Manitoba operates six stores mainly in the Winnipeg area, and has five, focused on and . Overall, about 80% of FreshCo's stores nationwide are situated in metropolitan areas to target urban demographics seeking affordable groceries. FreshCo has no stores in or provinces as of November 2025, where parent company primarily utilizes other banners such as IGA to cover those markets. The chain's franchise model supports regional operators in existing territories, enabling localized adaptations. Looking ahead, FreshCo plans to deepen its presence, aiming for 65 stores in the region by 2027 through further conversions and new openings, while no immediate expansion into has been announced.

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