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Conversion of Safeway, Sobeys stores to FreshCo on track

Russell Redman

February 1, 2019

2 Min Read
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Empire Co. Ltd. is making strides in its plan to expand its FreshCo discount grocery banner in western Canada.

The Sobeys Inc. parent company expects to open 12 FreshCo locations during calendar 2019 in British Columbia and Manitoba. In December 2017, Sobeys had unveiled plans to convert up to 25% of its 255 Safeway and Sobeys full-service stores in the region — amounting to more than 60 locations — to the FreshCo banner over the next five years.

This week, Empire said 10 stores in British Columbia will be reopened as FreshCo locations, adding to two store conversions in Winnipeg, Manitoba, announced in July 2018.

The first five FreshCo stores are slated to open this spring, including the two Winnipeg-area stores and three stores in British Columbia. Another seven stores are to be reopened under the FreshCo banner in British Columbia during the first half of fiscal 2020 (ending in June 2019), depending on timing of construction schedules and permits, Empire said.

The new FreshCo locations confirmed to date are in the Kildonan and Jefferson sections of Winnipeg; Abbotsford, Aldergrove, Ladner, Maple Ridge and Mission, B.C.; and the downtown Chilliwack, Broadmoor and Blundell neighborhoods in Richmond, and Strawberry Hills and Newton sections of Surrey, B.C.

Related:Sobeys reports earnings jump in second quarter

Stellarton, Nova Scotia-based Empire said a labor-related decision by the British Columbia government will help the company level the competitive playing field in the province. Announced Tuesday, the decision will enable Empire to offer voluntary buyouts to long-service Safeway employees in British Columbia, providing more flexibility and stability in managing labor and operational costs, according to the company.

"We are in the midst of turning around our western Canadian stores. We have improved our standards, execution and marketing," Empire President and CEO Michael Medline said in a statement. "We are extremely proud of the progress our teammates in the region are making. This decision in B.C. is a major building block in improving our customer service, employee relations, profitability and flexibility in the West."

In addition to expanding FreshCo, Empire aims to boost the presence of fresh grocery chain Farm Boy, acquired in an $800 million (Canadian) deal that closed in December. Plans call for Sobeys to ramp up the rollout of the Farm Boy concept in greater Toronto and southwestern Ontario through new construction and conversions of some current Sobeys stores.

Ottawa-based Farm Boy now has 28 stores in southeastern Ontario. The chain’s newest store, a 20,038-square-foot unit, opened its doors yesterday at Leslie Street and Lake Shore Boulevard in Toronto.

Related:Empire closes acquisition of Farm Boy chain

Overall, Empire’s Sobeys subsidiary owns, affiliates or franchises more than 1,500 stores in all 10 provinces under such banners as Sobeys, Safeway, IGA, Foodland, FreshCo, Thrifty Foods, Farm Boy and Lawtons Drugs. Its retail network also includes over 350 fuel locations.

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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