Sobeys
Sobeys Inc. is a major Canadian food retailer and wholly owned subsidiary of Empire Company Limited, headquartered in Stellarton, Nova Scotia.[1] Founded in 1907 by J.W. Sobey as a meat delivery service in Stellarton, the company has grown into one of only two national grocery chains operating stores across all ten Canadian provinces.[2][3] It oversees approximately 1,600 corporate and franchise locations under banners such as Sobeys, Safeway, IGA, FreshCo, and Lawtons Drugs, providing a range of grocery, pharmacy, and fuel services.[4][3] With over 115 years in the food retail business, Sobeys employs around 129,000 people and generates annual sales exceeding $31 billion, reflecting its significant market presence and operational scale.[1][5] The company's expansion has included strategic acquisitions and adaptations to consumer demands, such as e-commerce platforms like Voilà by Sobeys and a focus on private-label products.[2] Despite competitive pressures in the grocery sector, Sobeys maintains a family-influenced governance structure through Empire, prioritizing long-term shareholder value and regional community ties.[3] Its defining characteristics include full-service store formats with in-house bakeries, fresh produce, and prepared foods, alongside commitments to ethical sourcing and sustainability initiatives.[4][6]
Company Overview
Founding and Ownership Structure
Sobeys Inc. was founded on October 26, 1907, by John William (J.W.) Sobey in Stellarton, Nova Scotia, initially as a meat delivery service operating via horse and buggy in the local coal mining community.[7] J.W. Sobey, a former carpenter who had immigrated from England, acquired the business to serve the area's railway and mining workers, starting with a small storefront that offered fresh meat and limited local produce.[8] His son, Frank H. Sobey, joined at age 16 and persuaded his father to expand into a full grocery operation by 1924, adding shelves of dry goods and other staples to diversify beyond meat.[2] Under Frank Sobey's leadership, the company transitioned to self-serve grocery formats, opening Atlantic Canada's first modern supermarket in New Glasgow, Nova Scotia, in the early 1950s, which marked a shift from traditional counter service to streamlined retail efficiency.[2] This expansion capitalized on post-World War II consumer trends toward convenience, growing the family business from a regional operation to a chain with multiple locations across the Maritime provinces by the 1960s.[9] Sobeys Inc. operates as a wholly owned subsidiary of Empire Company Limited, a publicly traded Canadian conglomerate listed on the Toronto Stock Exchange (TSX: EMP.A), with Empire handling the food retailing segment through Sobeys.[3] While Empire's shares are held by diverse investors including pension funds and institutions, the founding Sobey family retains significant control via a dual-class structure, where Class B shares—consolidated into a single family holding company in 2017—carry enhanced voting rights, ensuring familial influence over strategic decisions despite public ownership.[10] This structure, common in family-founded enterprises, preserves the Sobey lineage's oversight, with descendants like Paul, Robert, and Frank Sobey holding notable stakes as of recent filings.[11]Leadership and Governance
Sobeys Inc. operates as a wholly-owned subsidiary of Empire Company Limited, a publicly traded entity controlled by the Sobey family through Class B multiple voting shares that confer significant influence despite representing a minority of total equity.[3][12] The integrated leadership structure aligns executive oversight between Empire and Sobeys, with the President and Chief Executive Officer role held jointly by Michael Medline since January 2017. Medline, who previously served in senior roles at Canadian Tire Corporation, announced his retirement effective May 2026, prompting a search for a successor.[13][14][15] The executive team reports to Medline and focuses on operational, financial, and strategic functions across food retailing. Key members include Pierre St-Laurent as Executive Vice President and Chief Operating Officer, responsible for store operations and supply chain; Constantine Pefanis as Executive Vice President and Chief Financial Officer, overseeing financial planning and reporting; Sandra Pasquini as Chief Human Resources Officer; Julia Knox as Chief Technology and Analytics Officer and Chief Privacy Officer; Doug Nathanson as Executive Vice President, Chief Development Officer, and General Counsel; Simon Gagné as Executive Vice President; and Sandra Sanderson as Chief Marketing Officer.[13] Empire's Board of Directors, which governs Sobeys through its subsidiary status, consists of 15 members as of 2025, chaired by James M. Dickson since 2016. The board includes several Sobey family representatives, such as Frank C. Sobey (director since 2007), Paul D. Sobey (since 1993), Rob G. C. Sobey (since 1998), Karl R. Sobey (since 2001), and Kent R. Sobey (since 2025), reflecting the family's foundational role and ongoing stewardship. Independent directors form a majority of the board and committees, ensuring oversight of strategic planning, risk management, internal controls, and succession.[16][17] The board operates through four standing committees to distribute responsibilities: the Audit Committee, chaired by Sharon Driscoll, reviews financial reporting, internal controls, external auditor independence, and risk management; the Human Resources Committee addresses executive compensation and talent development; the Corporate Governance & Social Responsibility Committee, chaired by Martine Reardon, handles governance policies, ethical conduct, and sustainability; and the Nominating Committee, also chaired by Reardon, manages director nominations and board composition. Empire maintains a Code of Business Conduct and Ethics applicable to Sobeys, emphasizing compliance, conflicts of interest, and anti-corruption measures, with periodic reviews by executives and the board.[18][19][20]Historical Development
Origins and Early Expansion (1907–1980s)
John William Sobey founded the business in 1907 by acquiring a meat delivery service in Stellarton, Nova Scotia, a coal mining and railway town, initially operating with a horse-drawn cart to buy livestock from local farmers and resell meat door-to-door.[21][22] In 1912, Sobey, joined briefly by his brother Charles, opened the company's first store—an 800-square-foot facility constructed from logs sourced from the family farm—expanding offerings to include vegetables, dairy, and fish alongside meat; Charles departed the following year.[21] The operation grew modestly in the 1920s under the influence of J.W.'s son, Frank H. Sobey, who at age 16 persuaded his father to add a full line of groceries, including imported goods, formalizing their partnership in 1924.[21][22] Frank opened the second Sobeys store in New Glasgow in 1925, followed by two more in Pictou County—Westville in 1928 and Trenton later that year—establishing a regional footprint in Nova Scotia.[22] By 1939, the chain comprised six stores.[21] Incorporation occurred on April 18, 1946, as Sobeys Stores Limited, coinciding with the acquisition of Barkers Stores Ltd. for CAD 159,000, which added eight shops, a warehouse, and a bakery to the portfolio.[21][22] The following year, Sobeys opened its first modern supermarket—a 6,150-square-foot "Sobey's Wholesale Groceteria" in Pictou County—signaling a shift toward larger, self-service formats.[21] J.W. Sobey died in 1949, leaving Frank to lead expansion; by 1956, the company operated 17 stores with annual sales of CAD 8 million.[21][22] Further growth in the late 1950s and 1960s included Sobeys' initial public offering and first annual report in 1959, entry into Prince Edward Island with its first store there in 1960, and expansion into Quebec via a Paspebiac location in 1964.[22] That year also saw Weston-Loblaw acquire a 40% stake for nearly CAD 1 million, providing capital for development until its repurchase in 1980.[21] Sales reached CAD 93 million by 1971 and CAD 237 million by 1977, with innovations like grocery scanning introduced at the Penhorn store in Dartmouth in 1979; by 1983, revenues exceeded CAD 500 million, reflecting sustained eastern Canadian dominance.[21][22]Major Acquisitions and Growth (1990s–2010s)
In 1998, Sobeys Inc. acquired The Oshawa Group Ltd. for approximately CAD 1.5 billion, a transaction that tripled the company's size and transformed it from a regional player in Atlantic Canada into a national grocery distributor.[23][24] The Oshawa Group, which was roughly twice Sobeys' size at the time, operated extensive wholesale and retail operations including IGA franchises, Price Chopper supermarkets, and Food City banners primarily in Ontario and Quebec, adding hundreds of stores and distribution capabilities to Sobeys' portfolio.[25] This acquisition enabled Sobeys to achieve over CAD 1 billion in annual sales for the first time and operate approximately 1,392 stores by 1999 with 32,000 employees.[2] During the 2000s, Sobeys pursued targeted expansions to strengthen its foothold in key markets. In December 2003, it purchased the assets of Commisso's Food Markets Ltd. and Commisso's Grocery Distributors Ltd. for CAD 65 million, gaining 15 grocery stores, six cash-and-carry outlets, and a wholesale distribution center in southern Ontario.[26][27] This bolstered Sobeys' presence in the competitive Ontario market without significant overlap. In July 2007, Sobeys acquired Thrifty Foods Inc., a British Columbia-based chain, for an enterprise value of CAD 260 million, marking its entry into the province with 20 stores focused on Vancouver Island and the Lower Mainland.[28][29] These moves contributed to steady organic growth, including new store formats and same-store sales increases averaging 2-4% annually in the early 2000s, driven by inflation-adjusted real growth and banner expansions.[30] The 2010s saw Sobeys' most transformative deal with the November 2013 acquisition of Canada Safeway Limited's assets for CAD 5.8 billion, adding 213 supermarkets, 199 in-store pharmacies, 62 gas stations, and supporting infrastructure like distribution centers in Western Canada.[31][32] To address competition concerns, Sobeys divested 23 stores to rivals such as Overwaitea Food Group and Federated Co-operatives.[33] This positioned Sobeys as the leading grocer in Alberta and enhanced its national scale, with total stores exceeding 1,500 by mid-decade and diversified banners including Safeway in the West. Complementary initiatives, such as the 2012 purchase of 236 Shell gas stations in Quebec and Atlantic Canada for CAD 214.9 million, further integrated fuel and convenience retail into its operations.[34] Overall, these acquisitions drove Sobeys' revenue growth from regional billions to over CAD 16 billion by the late 2010s, solidifying its status as Canada's second-largest grocer behind Loblaw Companies.[35]Recent Developments (2020–Present)
In March 2021, Empire Company Limited, Sobeys' parent, acquired a 51% controlling stake in Longo's, a Toronto-based specialty grocer with 36 stores, and its e-commerce platform Grocery Gateway, for $357 million, valuing the enterprise at $700 million; the deal closed on May 10, 2021, enhancing Sobeys' presence in Ontario's competitive fresh food market.[36][37] This acquisition added approximately 70,000 online customers and supported Sobeys' strategy to integrate advanced e-commerce capabilities amid rising digital grocery demand post-COVID-19.[38] Sobeys advanced its omnichannel presence through Project Horizon, a three-year initiative completed at the end of fiscal 2023 (May 2023), which focused on market share growth, store renovations, and digital integration, including expansions of the Voilà by Sobeys rapid delivery service to additional provinces.[39] E-commerce efforts continued with partnerships for Instacart and Uber Eats deliveries starting in Ontario, planned for broader rollout, and a new central fulfillment center in Vancouver slated for 2025 to launch Voilà in British Columbia.[40][41] Concurrently, Sobeys expanded Farm Boy banner locations in Ontario, announcing conversions such as Harbourfront in Toronto, Bronte in Oakville, and Greenbank in Ottawa.[42] Financial performance strengthened, with fiscal 2025 (ended May 3, 2025) food retailing sales rising 2.4% to reflect growth in full-service formats and operational efficiencies, alongside a 3.9% increase in gross profit driven by higher volumes and cost discipline.[43] In the first quarter of fiscal 2026 (ended August 2025), Empire reported net earnings of $212 million and sales growth, exceeding analyst profit expectations despite moderated same-store sales, attributed to investments in owned brands and supply chain.[44][45] Empire allocated approximately $700 million in capital expenditures for fiscal 2025, prioritizing network renovations (targeting 20-25% of stores) and new openings planned for 2025 to sustain expansion.[46][47] Sustainability initiatives advanced, with Empire becoming the first national Canadian grocery chain to phase out single-use plastic shopping bags across its operations in recent years, as detailed in its fiscal 2024 report.[48] Executive restructuring included creating chief operating officer and chief information officer roles to oversee operations and technology amid digital scaling.[49]Retail Operations
Banner Brands and Formats
Sobeys Inc. employs a diversified portfolio of banner brands operating under five core retail formats to address varied customer shopping patterns and regional demands across Canada's 10 provinces. These formats include full-service supermarkets with extensive specialty departments such as pharmacies, delis, and bakeries; discount stores prioritizing low everyday prices on fresh perishables; community and neighborhood grocers emphasizing local engagement and personalized service; convenience outlets for quick, on-the-go purchases; and health-oriented specialty stores focusing on organic and wellness products. This approach enables targeted market penetration, with approximately 1,500 stores collectively serving diverse demographics from urban centers to rural areas.[1][50] Full-service banners form the backbone of Sobeys' operations, exemplified by the Sobeys brand itself, which runs 255 modern stores in Western Canada, Ontario, and Atlantic Canada, featuring full-service meat and seafood counters, farm-fresh produce, in-store prepared foods, and florists. Safeway, another full-service banner, operates 171 stores primarily in Western Canada and select Ontario locations, incorporating fuel centers alongside traditional grocery departments like bakeries and delis. Thrifty Foods, with 26 stores concentrated on Vancouver Island and British Columbia's Lower Mainland, similarly provides comprehensive full-service offerings enhanced by online grocery delivery capabilities. In Québec, full-service variants under the IGA umbrella, including IGA (194 stores in mid-sized and larger communities) and IGA extra (133 stores), prioritize high-quality fresh foods and customized assortments.[4][50] Discount and value-oriented formats contrast with full-service models by streamlining operations to deliver competitive pricing, as seen in FreshCo's 101 stores nationwide, which emphasize an unconventional shopping experience centered on affordable fresh produce and staples. Community-focused banners, such as Foodland with 217 neighborhood stores across multiple provinces, cater to routine fill-in shopping in local markets through broad product variety and community ties. Québec-specific community formats include Marchés Tradition (75 stores in smaller locales) for personalized fresh-item service and Marché Bonichoix (60 rural markets) offering scaled-down quality selections suited to one-store towns.[4][50] Convenience and specialty banners round out the portfolio for niche needs. Needs operates 89 stores in Atlantic Canada as compact, often 24-hour outlets for immediate essentials, sometimes paired with gas bars. Rachelle-Béry maintains 15 health food stores emphasizing produce, prepared organic meals, and eco-friendly household items. Lawtons Drugs provides integrated health, beauty, and convenience retail in Atlantic Canada, complementing food banners with pharmaceutical services. This banner diversity supports Sobeys' strategy of format-specific adaptations, such as franchise models for IGA and independent grocer affiliations for Foodland, ensuring operational flexibility amid competitive pressures.[4][50]Supply Chain and Logistics
Sobeys operates a network of regional supply centers (RSCs) across Canada, with a focus on automation to enhance operational efficiency, product accuracy, and labor cost reduction in its grocery distribution.[51] The company maintains four mostly automated distribution centers designed for dry grocery, perishables, and other essentials, supporting stores under banners like Sobeys, FreshCo, and Foodland.[52] These facilities utilize technologies such as automated storage and retrieval systems (AS/RS), case-picking machinery, and dynamic palletizing to process high volumes while minimizing manual intervention.[53] The Vaughan, Ontario RSC, Sobeys' first fully automated facility, began shipping in July 2009 after consolidating operations from prior centers in Milton and Whitby.[51] Spanning 500,000 square feet with a 65-foot ceiling, it employs Witron's Order Picking Machinery (OPM) and Case Order Machine (COM) systems, including 11 AS/RS pallet cranes and 32 miniload cranes, to handle up to 320,000 cases daily or over 1.4 million weekly for Ontario stores.[51] [53] Automation levels reach 85%, enabling 30-40% labor savings, 1.5 times more SKUs (up to 18,000), and store-ready pallets that reduce transportation volume by 5-10%.[53] In Terrebonne, Quebec, a $168 million facility opened for shipping in January 2013, replacing two older RSCs and serving Quebec and New Brunswick markets.[54] This 470,000-square-foot center, also powered by Witron technology, features 64 dock doors and houses 12,000 products, shipping over 1 million cases weekly with aisle-specific pallet configurations for improved store efficiency.[54] The Rocky View, Alberta RSC, completed in June 2023, incorporates sustainable CO₂ transcritical refrigeration with 580-ton capacity, heat recovery for heating applications, and zero global warming potential refrigerants, aligning with broader environmental goals while automating perishable and dry goods distribution.[55] Logistics efforts emphasize sustainability and innovation, including partnerships to eliminate ice from broccoli supply chains nationwide by 2024, reducing waste and emissions through vacuum cooling technology.[56] Sobeys has also launched CDP Supply Chain programs to assess and improve supplier sustainability practices, alongside achieving 32% food waste reduction in operations toward a 50% target by 2025.[57] [58] These initiatives support net-zero Scope 1 and 2 emissions ambitions by 2050, prioritizing empirical reductions in energy use and packaging across the chain.[59]Product and Service Offerings
Private Label Brands
Sobeys Inc. operates a portfolio of private label brands, with Compliments serving as the flagship offering across its banners. Introduced in 2005, Compliments provides a wide range of grocery products, including staples, organics, and value-oriented items, positioned as delivering quality at competitive prices.[60][61] The brand originated from the "Our Compliments" label acquired through Sobeys' purchase of the Oshawa Group, which was rebranded and expanded to unify private label products nationwide.[2] Complementing Compliments are specialized private labels targeting niche markets. Panache focuses on premium, innovative products such as gourmet foods and household essentials, emphasizing style and quality. Best Buy targets budget-conscious consumers with everyday low-price items in categories like canned goods and snacks. Eight Treasures caters to Asian-inspired cuisine with authentic ingredients and flavors, while Chalo! offers value-driven options tailored for South Asian preferences, including spices and ready meals. These brands are distributed exclusively through Sobeys banners like Safeway, IGA, and FreshCo.[60][62] Sobeys has invested in growing its private label portfolio to enhance customer value and differentiation. By 2020, the company launched its largest marketing campaign for Compliments, highlighting product variety and affordability amid competitive pressures. Private labels now represent a significant portion of Sobeys' sales, with ongoing expansions into organic and ethnic segments to meet diverse consumer demands.[63][60]Fresh Produce and Specialty Items
Sobeys maintains an extensive fresh produce department featuring a diverse array of fruits and vegetables, including both conventional and organic varieties such as red seedless grapes, Pink Lady apples, blueberries, cilantro, hot house tomatoes, romaine lettuce, and specialty items like Indian bitter karela and rainbow chard.[64] These products are positioned as high-quality and reliable for everyday use, with availability varying by store location and seasonal factors.[65] Sourcing prioritizes local suppliers where feasible, such as Nova Scotia-based Country Magic for highbush blueberries, onions, potatoes, strawberries, and blackberries, supporting regional agriculture while ensuring freshness.[66] Organic produce falls under the Compliments Organic label, certified by Quality Assurance International, emphasizing simple ingredients and natural appeal.[60] Quality controls include supplier food safety checklists, certifications, and ongoing risk assessments to prevent issues before products reach shelves, contributing to Sobeys' receipt of the International Association for Food Protection's Black Pearl Award in 2025 for advancements in food safety and quality.[67][68] In select banner formats like FreshCo and Sobeys Extra, the produce section expands to include ready-to-eat options such as store-cut fruits, salads, pre-cut vegetables, and a broader organic selection tailored to health-conscious consumers.[69][70] Specialty fresh items extend to multicultural assortments, accommodating diverse preferences with items like fresh herbs and ethnic vegetables, alongside prepared offerings such as rotisserie chicken, wraps, flatbreads, and soups designed for convenience.[71] The Compliments brand further supports these categories with packaged fresh produce, including salad mixes, herbs, and organic mushrooms, often highlighting value through weekly promotions.[72][73]Customer and Loyalty Programs
Program Details and Evolution
Sobeys' primary customer loyalty program is Scene+, a coalition-based rewards initiative co-owned by Empire Company Limited (Sobeys' parent), Scotiabank, and Cineplex, which enables members to earn and redeem points across groceries, banking, entertainment, and other partners.[74] Launched for Sobeys banners in 2022, the program awards Scene+ points on eligible purchases—typically 10 points per $1 spent at grocery stores—with redemption options including discounts on future shopping, gift cards, travel, or partner services; points do not expire as long as the account remains active.[75] Membership is free via app, website, or in-store signup, with integration for personalized offers based on purchase history, though data privacy practices have drawn scrutiny from consumer advocates over data-sharing among partners.[76] The program's evolution traces to Sobeys' adoption of the AIR MILES rewards system in March 2015, marking the first nationwide implementation by a Canadian grocer, initially focused on eastern Canada and later expanded to western banners like IGA and Thrifty Foods.[77] AIR MILES allowed mileage accumulation on purchases redeemable for travel, merchandise, or cash rewards, but faced criticism for devaluation of rewards and limited redemption flexibility compared to competitors.[2] By June 2022, Empire announced its exit from AIR MILES to co-own and integrate Scene+, aiming for a "world-class" lifestyle program with enhanced earning potential through cross-partner synergies, such as combining grocery points with Scotia Scene+ credit card bonuses.[78] The Scene+ rollout commenced in Atlantic Canada on August 11, 2022, followed by western Canada in September 2022, Quebec (including IGA and Rachelle Béry) on March 23, 2023, and Ontario on November 3, 2023, achieving full national coverage across Sobeys, Safeway, FreshCo, Foodland, and Voilà delivery by early 2023.[79] This phased transition included a final AIR MILES redemption deadline of September 21, 2022, in some regions, with Empire citing Scene+'s scalability and data analytics as drivers for the shift, though early adopter feedback highlighted adjustment challenges like point conversion rates.[80] Subsequent updates, such as October 2022 earn rate enhancements for Scene+ Visa cards, reflect ongoing refinements to boost retention amid competitive pressures from programs like PC Optimum.[81]Integration Across Banners
The Scene+ loyalty program, launched across Empire Company Limited's banners in 2022, enables unified earning and redemption of points at participating grocery stores, replacing fragmented legacy programs such as Sobeys' More Rewards and certain Air Miles integrations.[74][75] Customers earn 2 Scene+ points for every eligible $1 spent at banners including Sobeys, Safeway, Foodland, participating IGA stores, FreshCo, Chalo! FreshCo, and Thrifty Foods, with points redeemable at 1,000 points equaling $10 toward purchases across these formats.[82][83] This cross-banner structure, facilitated by a single membership card or app, supports over 15 million members as of fiscal 2024, allowing seamless accumulation from diverse shopping experiences within Empire's network of more than 1,200 stores.[84] Rollout began in Atlantic Canada in August 2022 with Sobeys and affiliated banners, progressing westward to include Quebec's IGA and other regional formats by late 2022, British Columbia's Thrifty Foods in March 2023, and full national coverage by early 2023.[85][86] Empire's co-ownership stake in Scene+ with Scotiabank and Cineplex, acquired in June 2022, underpins this integration, extending points earning beyond groceries to financial services and entertainment while maintaining banner-specific earning rates.[74][78] Notably, certain acquired banners like Farm Boy and Longo's do not participate, preserving their independent loyalty systems to align with distinct market positioning.[87] Integration enhances customer retention by aggregating data across banners for personalized offers via the My Grocery Offers platform, which delivers targeted digital coupons redeemable at any participating store.[88] This approach leverages Empire's supply chain efficiencies to standardize point redemption on private-label and national brands, though redemption excludes certain items like tobacco and gift cards per program terms updated March 2025.[89] Empirical data from Empire's reports indicate sustained membership growth post-integration, with Scene+ contributing to a 5-10% uplift in comparable store sales in participating banners during fiscal 2023-2024, attributed to cross-promotional synergies.[90][91]Financial Performance
Historical Revenue Trends
Empire Company Limited, the parent of Sobeys Inc., has reported consistent growth in food retail sales—predominantly from Sobeys operations—over the past decade, driven by strategic acquisitions, store expansions, and organic same-store sales increases amid rising grocery demand.[92] From fiscal 2012 to fiscal 2025, annual sales expanded from over $16 billion CAD to $31.36 billion CAD, reflecting a compound annual growth rate of approximately 4.7%, with accelerations tied to key events like the October 2013 acquisition of Canada Safeway's operations, which added significant Western Canadian market share and boosted subsequent fiscal revenues.[93][94][95] The Safeway acquisition, cleared by Canadian competition authorities, integrated over 200 stores and elevated Empire's national footprint, contributing to a marked revenue uptick in fiscal 2014 and beyond, as partial-year contributions transitioned to full integration.[41] Post-acquisition growth stabilized around 3-5% annually in many years, supplemented by smaller deals such as the 2018 purchase of Farm Boy and organic gains from loyalty programs and e-commerce, though tempered by competitive pressures and inflationary cost pass-throughs.[96] The COVID-19 pandemic further propelled sales in fiscal 2020 and 2021, with essential grocery demand offsetting any temporary disruptions.[92]| Fiscal Year End | Revenue (CAD millions) |
|---|---|
| May 5, 2012 | >16,000 |
| May 4, 2013 | >17,000 |
| May 2, 2020 | 26,588 |
| May 1, 2021 | 28,268 |
| May 7, 2022 | 30,162 |
| May 4, 2024 | 30,700 |
| May 3, 2025 | 31,360 |
Fiscal 2024–2025 Results and Projections
Empire Company Limited, the parent company of Sobeys Inc., reported fiscal 2025 revenue of $31,277 million for the year ended May 3, 2025, representing a 3.0% increase from $30,733 million in the prior fiscal year.[43] This growth was driven primarily by food retailing operations under the Sobeys banner and affiliates, with same-store sales advancing 1.9% overall and 2.3% excluding fuel.[43] Net earnings attributable to owners totaled $700 million, a decline from $726 million the previous year, yielding diluted earnings per share of $2.93 compared to $2.92.[43] Adjusted net earnings per share, which exclude certain non-recurring items, rose 8.8% to $2.98, reflecting operational efficiencies and cost management amid inflationary pressures in the grocery sector.[43] In the fourth quarter alone, net earnings reached $173 million ($0.74 per share), up from $149 million ($0.61 per share) year-over-year.[43] Looking forward, Empire outlined plans for fiscal 2026 capital expenditures of approximately $850 million, allocating roughly 50% to store renovations and new builds, 25% to information technology and business development, and the balance to supply chain and sustainability initiatives.[43] The company also announced a 10% increase in its quarterly dividend, continuing a 30-year streak of annual raises, and renewed its normal course issuer bid to repurchase up to $400 million in shares, signaling confidence in sustained cash flow generation from its core Sobeys operations.[43] These measures aim to support network modernization and shareholder returns amid competitive dynamics in Canadian food retailing.[43]Digital and E-Commerce Initiatives
Online Grocery Platforms
Sobeys operates Voilà as its primary dedicated online grocery platform, launched in June 2020 to provide home delivery services in the Greater Toronto Area (GTA) using an automated customer fulfillment center (CFC) in Vaughan, Ontario.[98] The service enables customers to order thousands of grocery items, including fresh produce guaranteed for quality, via a dedicated website and mobile app, with options for one-hour delivery windows and pricing equivalent to in-store rates.[99] [100] A subscription delivery pass, starting at $9.99 per month, waives additional delivery fees for frequent users.[100] The platform originated from a January 2018 partnership with Ocado Group, licensing proprietary technology for online ordering, robotic fulfillment, and last-mile delivery to support scalable e-commerce operations.[101] Initial plans announced in May 2019 targeted a 2020 launch with automated warehouses to differentiate from competitors relying on store-based picking.[102] By 2020, Voilà integrated products from Sobeys banners alongside third-party favorites like Farm Boy, emphasizing efficiency through Ocado's end-to-end solutions.[103] Beyond GTA home delivery, Voilà supports curbside pickup at select Sobeys, Safeway, and other affiliated stores in regions including Atlantic Canada, Alberta, and British Columbia, allowing customers to order online for in-store assembly and contactless retrieval at equivalent prices.[104] Expansion included additional CFCs, such as one in Rocky View, Alberta, equipped with sustainable CO2 refrigeration systems to handle growing demand.[55] However, in June 2024, Sobeys paused a planned Vancouver CFC opening and terminated mutual exclusivity terms with Ocado, citing unprofitability across its three operational centers amid softening e-commerce prospects.[105] [106] Despite this, Voilà reported 26.2% year-over-year sales growth in the first quarter of fiscal 2025, driven by volume and operational efficiencies.[46] To broaden reach, Sobeys supplemented Voilà in October 2024 with partnerships enabling Instacart and Uber Eats to offer home delivery from its stores, providing same-day options without building additional proprietary infrastructure.[107] These integrations complement core platforms while addressing varying customer preferences for speed and convenience across banners like FreshCo and IGA.[108]Technology and Innovation Investments
Sobeys has invested significantly in supply chain automation, operating four mostly automated distribution centers across Canada designed to enhance efficiency and reduce labor costs through advanced warehouse and picking technologies.[51] These facilities, including a key automated center in Ontario justified by high regional volume, incorporate robotics and automation systems to improve order accuracy and operational speed, representing an early adoption of Industry 4.0 principles in grocery logistics.[51] In fiscal 2025, parent company Empire Company allocated C$138 million in capital expenditures during the first quarter, with portions directed toward technology investments alongside store renovations and expansions.[109] This includes ongoing commitments to data analytics and automation, as Empire plans continued spending in these areas into 2025 to support broader operational improvements.[110] Sobeys has also deployed Samsara's fleet management solutions to automate processes, optimize fuel usage, and enhance supply chain communication, reducing manual interventions in transportation logistics.[111] The company is piloting artificial intelligence technologies for customer insights, partnering with Loop Insights to deploy AI-driven analytics in five stores for real-time data on shopper behavior and engagement.[112] In store operations, Sobeys is rolling out approximately 5 million electronic shelf labels (ESLs) across its Canadian network by April 2026, following an initial deployment in 50 stores via agreements with Pricer and JRTech Solutions to enable dynamic pricing and reduce manual labeling errors.[113] Additionally, in April 2024, Sobeys partnered with Verdant Technologies to integrate HarvestHold Fresh technology, eliminating ice from its broccoli supply chain to extend shelf life and minimize waste through innovative preservation methods.[114] These initiatives reflect a strategic focus on scalable tech adoption to drive cost efficiencies and competitive advantages in retail operations.Geographic Presence
Canadian Market Coverage
Sobeys Inc. operates in all ten Canadian provinces, positioning it as one of only two national grocery retailers alongside Loblaw Companies Limited.[1] The company oversees approximately 1,600 stores under multiple banners, including full-service supermarkets, discount formats, and convenience outlets, enabling broad market coverage from densely populated urban areas to remote rural regions.[3] This nationwide footprint supports Empire Company Limited's food retailing segment, which generated significant revenue through diverse provincial operations as of fiscal 2025.[46] Originating in Atlantic Canada with its first store in Stellarton, Nova Scotia, in 1907, Sobeys maintains a dominant presence in the region, operating numerous stores under the core Sobeys banner and formats like Needs convenience stores with extended hours.[4] Expansion into central and western Canada accelerated in the mid-20th century, beginning with Ontario in the 1950s via stores like the one opened in Guelph, followed by Quebec through the IGA network and western provinces via acquisitions such as Safeway in 2013 and Thrifty Foods.[115] These moves established regional strongholds: IGA predominates in Quebec with adapted product lines for local tastes; Ontario features a blend of Sobeys supermarkets, FreshCo discount stores, and Foodland independents; while Safeway and Thrifty Foods anchor operations in British Columbia, Alberta, Saskatchewan, and Manitoba.[46] Regional offices in Atlantic Canada, Quebec, Ontario, and Western Canada facilitate customized supply chains, merchandising, and community engagement tailored to provincial demographics and regulations.[116] For instance, western banners emphasize fresh produce and pharmacy services suited to sprawling geographies, whereas Atlantic operations leverage historical brand loyalty for higher market penetration. This decentralized yet integrated structure allows Sobeys to navigate varying competitive landscapes, including rivalry from provincial independents and discounters, while achieving national scale efficiencies.[3] As of September 2025, the Sobeys-branded subset alone numbered 235 locations, with Ontario hosting the largest share at 75 stores.[117]Store Count and Regional Focus
Sobeys Inc. operates approximately 1,600 stores across all ten Canadian provinces, encompassing a mix of owned, franchised, and affiliated locations under diverse banners tailored to local markets.[1] This network positions the company as one of Canada's two primary national grocers, with a focus on full-service supermarkets, discount outlets, convenience formats, and pharmacies.[3] As of recent corporate disclosures, the portfolio includes over 1,500 stores, supplemented by more than 350 retail fuel sites.[118] The company's regional strategy emphasizes adaptation through banner-specific operations, reflecting historical roots in Atlantic Canada while leveraging acquisitions for broader coverage. In Atlantic Canada, Sobeys maintains a concentrated presence via Needs convenience stores (89 locations) and Lawtons pharmacies, serving community-oriented needs in its foundational markets.[4] Quebec features the heaviest reliance on IGA-affiliated banners, including IGA (194 stores), IGA Extra (133 stores), Marché Bonichoix (60 stores), and Marchés Tradition (75 stores), which align with francophone consumer preferences and independent grocer traditions.[4] Ontario and Western Canada host complementary formats for competitive differentiation. Foodland (217 stores) and FreshCo (101 stores) dominate in Ontario, emphasizing value and local sourcing, while Safeway (171 stores) and Thrifty Foods (26 stores in British Columbia) support upscale and regional fresh offerings in the West.[4] The core Sobeys banner comprises 255 stores, with significant density in Ontario (75 locations as of September 2025), alongside national distribution.[4] [117] Rachelle-Béry (15 stores) adds a niche health-focused element, primarily in Quebec.[4] Empire Company, Sobeys' parent, plans accelerated openings in fiscal 2026, targeting Quebec and other growth areas to enhance regional penetration.[119]| Banner | Approximate Stores | Primary Regional Focus |
|---|---|---|
| Sobeys | 255 | Ontario and national |
| Foodland | 217 | Ontario and Atlantic |
| IGA | 194 | Quebec |
| Safeway | 171 | Western Canada and Ontario |
| IGA Extra | 133 | Quebec |
| FreshCo | 101 | Ontario |
| Needs Convenience | 89 | Atlantic Canada |
| Marchés Tradition | 75 | Quebec |
| Marché Bonichoix | 60 | Quebec |
| Thrifty Foods | 26 | British Columbia |
| Rachelle-Béry | 15 | Quebec |