Market News

Sobeys to Convert Ontario IGA Outlets

Under a new corporate restructuring plan, Sobeys Inc. is about to convert most IGA outlets in Ontario to either the Sobeys, Foodland or Price Chopper banners. According to a CBC report, citing a confidential letter from Sobeys to Ontario IGA franchisees, Sobeys is offering to buy out any of the IGA independent franchisees that do not wish to convert their stores. Reports say Sobeys is planning to see all of its stores fall into one of five formats: full service (Sobeys), community service (Foodland), fresh service (Sobeys), price service (Price Chopper) or convenience (Sobeys Express). The conversions are to take place over the next few months. IGA\'s advisory committee says its lawyers are reviewing the situation and will monitor to ensure Sobeys respects its contractual obligations under the IGA franchise agreements. Source: Canadian Grocer E-Newsletter, September 8, 2006.