Empire plans dozens of new discount stores as price-conscious shoppers drive sales in market segment

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Sobeys parent company Empire Co. Ltd.
EMP-A-T -0.28%decrease

announced on Thursday a plan to accelerate investments in its retail network, opening more new stores and renovating others, as competition for price-sensitive Canadian shoppers continues to be intense.
The news came as the Stellarton, N.S.-based grocer reported higher sales and profits in its fourth quarter and increased its quarterly dividend paid to shareholders.
Empire opened five new stores in its fourth quarter, four of which were discount FreshCo locations. The company plans to open 20 more new stores in the current fiscal year, and 70 total over the next three years, president and chief executive officer Pierre St-Laurent said on a conference call Thursday to discuss the fourth-quarter results. Its plans include expanding the FreshCo banner in Atlantic Canada.
Including renovations and store conversions, Empire plans to complete 90 real estate projects annually, an increase of 25 per cent compared to fiscal 2025 and 2026, Mr. St-Laurent said.
Empire, which owns chains including Sobeys, Safeway, IGA, Farm Boy and FreshCo, reported sales increases in both its discount and conventional grocery banners in the fourth quarter ended May 2. Profits jumped by 22.5 per cent, as the stores continued to make progress on preventing food waste, offering a better mix of promotions, and other efficiencies.
The company reported net earnings of $212-million or 94 cents per share, compared to $173-million or 74 cents per share in the same period last year.
Sales grew to $7.8-billion in the quarter, up 2.2 per cent compared to the same period last year.
The company announced it will raise its quarterly dividend to 24.25 cents per share, up from 22 cents per share.
Empire is continuing to fight cost-increase requests from its suppliers, who have been asking retailers across the industry to help them offset the effect of higher fuel prices caused by the Middle East conflict.
“Consistent with our approach on tariffs, we are pushing back on fuel related surcharges. We know many consumers remain stretched,” Mr. St-Laurent said during the call, referring to similar cost-increase requests that came last year after Canadian counter-tariffs on U.S. imports, applied in reaction to the Trump administration’s tariffs on Canadian goods, also put pressure on the cost of food.
The pushback has helped to keep Empire’s price increases lower than overall food inflation in Canada, according to the company.

Earlier this year, the company shut down its Voilà e-commerce facilities in Alberta and took a $746-million writedown on the business after the financial results from its e-commerce strategy fell short of expectations.
Since ending its exclusive relationship with e-commerce technology partner Ocado, Empire has struck new partnerships with third-party delivery services Instacart, Uber Eats and Door Dash, which contributed to 6-per-cent e-commerce sales growth in the fourth quarter. Empire is expecting the economics of its e-commerce business to improve in the year ahead, Mr. St-Laurent said.
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Behold the economic expansion of the Carney 2026 definitely-not-in-recession Canadian economy!
 
Upvote 8
Nigga yo value-add ain't shit nigga! I'm eatin' beans and rice out a thermos and you niggas talkin' 'bout hot meals ready to eat what the fuck I gon' do wit dat? How I gon' feed muh keeds?! Sobeys nigga? Read between the S's dat some real shit nigga. Gimme dat government peanut butter rip my fuckin' bread to shit.
 
I wonder if most people understand how markets work they keep bitching and moaning that the grocery stores are making more profit than ever but that doesn't tell you the whole story. If their profit margins are 10% on an item and their costs go up they raise the price but they still make that same 10% if you have more people buying food in Canada what you do with all the immigration yes their profits are going to go up without them themselves actually making any more percentage on a particular item.
 
I can guarantee most people don't. Every business that isn't failing should see record profits every single year due to inflation, but that's the quote retards use to say Loblaws is screwing them all.
 
I mean, competition is always good.
 
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