Market News

Sobeys Reports 4.1% Same-Store Sales Gain

Sobeys Inc. reported a slight hike in its profits in the first quarter thanks to a combination of new outlets, higher sales, effective merchandising strategies and investment in its stores. Specifically, the company enjoyed an overall sales gain of 9.6% and comparable-store increases of 4.1% during the fiscal first quarter ended August 6. Sobeys earned $48.2 million on sales of $3.3 billion during the quarter. In addition, Sobeys reported $0.74 of earnings, below its $0.79 forecast. Almost all of the difference was due to depreciation. Sales and EBITDA—with the exception of some M&A costs—were almost in line. In addition to cutting costs, the Stellarton, N.S.-based company added three new stores and renovated three outlets in the quarter. Sobeys Inc. announced an aggressive merchandising plan in a particularly competitive Ontario market. CEO Bill McEwan said he is "bullish" about the future. Source Canadian Grocer E-Newsletter, Sept. 23, 2005.