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Sobeys unveils more Safeway-to-FreshCo conversions

Chalo! FreshCo South Asian-focused stores debut in Western Canada

Russell Redman

July 26, 2019

2 Min Read
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Sobeys Inc. parent Empire Company Ltd. plans to switch four more Safeway supermarkets in Saskatchewan to its FreshCo discount grocery format, marking 22 planned conversions to date.

The Canadian grocer said this week it plans to close its Regent Park, Confederation Suburban Centre, 33rd Street Saskatoon and Market Mall Saskatoon Safeway locations in March 2020, with the stores slated to reopen under the FreshCo banner in summer 2020, depending on the timing of construction schedules and permits.

In December 2017, Empire said it aims to convert about 25% of underperforming Safeway and Sobeys full-service stores in Western Canada — 65 locations — to FreshCo outlets over the next five years.

So far under the company’s expansion plan, seven FreshCo stores have opened in British Columbia and Manitoba. Another five are due to open in British Columbia later in 2019 and early 2020, and six Safeways in the province are expected to reopen as FreshCo locations next spring.

"We are one-third of the way selecting and opening our FreshCo stores in Western Canada," Mike Venton, general manager for FreshCo, said in a statement. "We continue to make smart investments and leverage our current real estate network to deliver exactly what our customers want. We are winning market share we simply couldn't compete for in the past. The customer feedback so far has been strong, and we're moving full steam ahead with our rollout."

Related:Farm Boy helps lift sales at Sobeys

Most recently, Empire opened its first two Chalo! FreshCo stores in the west in Surrey, British Columbia. Along with FreshCo’s traditional offer of high-quality fresh products at low prices, the Chalo! FreshCo stores offer a wide assortment of South Asian products, such as rice, spices, lentils, snacks, fresh produce and seafood, and halal meat. The concept made its debut in 2015 in Ontario.

In British Columbia, the retailer plans to open four more FreshCo stores this year and seven in 2020.

"Our marketing leading up to each store opening has been very strong and focused on connecting with the local community in a meaningful way," according to Venton. "We will continue to push hard and win in this hyper-competitive discount space. So far, we've effectively differentiated ourselves as the discount grocery retailer of choice with exceptional quality, product assortment, fresh produce and price."

Empire added that store closure costs will be charged to earnings in the fiscal 2020 first quarter of fiscal 2020. The combined closure expenses related to store conversions are estimated at $6 million. These costs, along with those from the recent FreshCo and Farm Boy conversions, total $21 million, the company said.

Related:FreshCo comes to western Canada

Overall, Sobeys owns, affiliates or franchises more than 1,500 food and drug stores in all 10 provinces under such banners as Sobeys, Safeway, IGA, Foodland, FreshCo, Thrifty Foods, Farm Boy and Lawtons Drugs.

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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