Market News

Sobeys Doesn't Blink

Its loss to Metro Inc. of A&P Canada notwithstanding, Sobeys Inc. is in good shape. So said Sobeys chief executive Bill McEwan at a recent Scotia-Capital-funded conference. His company, he said, hasn't "lost any momentum in Ontario." He went on to concede that Canada's biggest province "has been, and will be for the foreseeable future, our biggest challenge and our biggest opportunity." McEwan added: "It would be inappropriate to leave any impression that we are disappointed in any way." Indeed, McEwan said Sobeys will benefit from a business that is poised for rejuvenation, now that the competition has ceased. He noted that the retailer has converted 72 stores to the Sobeys banner in western Canada, refocused the grocery business around groceries and shaved retail prices by 15% across the board in order to make the business more competitive. In the first quarter ended August 6, profit at Sobeys rose 3.4% to $48.2 million, or 74 cents a share, from $46.6 million (71 cents) a year ago. Sales rose 9.6% to $3.3 billion. Source: Canadian Grocer E-Newsletter, October 13, 2005.