Market News

Sales, profits up at Sobeys

Sales at Sobeys rose $32.6 million to $3.77 billion in the three-month period ending January 30, an increase of 0.9% compared to the same period a year earlier. Same-store sales rose 0.3% in the third quarter, during which retail food prices deflated, according to the supermarket chain\'s parent, Empire Company Limited. Sobeys\' net earnings rose $9.7 million to $63.5 million, a jump of 18%. In a conference call with analysts, Sobeys CEO Bill McEwan said retail deflation is impacting revenues. Consumers also continue to trade down in transactions. But he added that Sobeys has seen a pickup in sales of private-label brands. Source: Canadian Grocer E-Newsletter, March 15, 2010