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Sobeys Reports Sales, Earnings Gain in Q3

Despite encountering challenges of rapid price deflation and price competition, Sobeys eked out small gains in same-store sales and operating income during the fiscal third quarter.

Jon Springer, Executive Editor

March 10, 2010

1 Min Read
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JON SPRINGER

STELLARTON, Nova Scotia — Despite encountering challenges of rapid price deflation and price competition, Sobeys eked out small gains in same-store sales and operating income during the fiscal third quarter.

The results came despite Sobeys cycling a year-ago period with 4% inflation and the benefit of a labor strike affecting one of its competitors, noted Bill McEwan, chief executive officer of Sobeys, speaking in a conference call Wednesday reviewing financial results of Empire Co., Sobeys’ parent company.

Food retail sales for the quarter, which ended Jan. 30, were $3.7 billion (U.S.), an increase of 0.9%, with same-store sales increasing by 0.3%. Price deflation during the quarter was about 1.5%, McEwan said vs. 4% inflation last year. Operating income of $97.7 million increased 0.7% compared with the same period last year, and net earnings improved 18% to $61.9 million.

McEwan credited Sobeys momentum to “a series of strategic, management and operational improvements we have made over the last several years,” including more effective labor management, more efficient distribution and nimble pricing and promotional programs.

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About the Author

Jon Springer

Executive Editor

Jon Springer is executive editor of Winsight Grocery Business with responsibility for leading its digital news team. Jon has more than 20 years of experience covering consumer business and retail in New York, including more than 14 years at the Retail/Financial desk at Supermarket News. His previous experience includes covering consumer markets for KPMG’s Insiders; the U.S. beverage industry for Beverage Spectrum; and he was a Senior Editor covering commercial real estate and retail for the International Council of Shopping Centers. Jon began his career as a sports reporter and features editor for the Cecil Whig, a daily newspaper in Elkton, Md. Jon is also the author of two books on baseball. He has a Bachelor of Arts degree in English-Journalism from the University of Delaware. He lives in Brooklyn, N.Y. with his family.

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