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Sobeys talks tough on Ontario
Thursday, September 8, 2005 Page B9
Canadian Press
STELLARTON, N.S. -- Sobeys Inc., Canada's second-largest supermarket chain, says it's ready to take a bite out of the competition -- particularly in the cutthroat Ontario market -- with an aggressive merchandising plan that helped it ring up a higher first-quarter profit.
CEO Bill McEwan, addressing shareholders at the company's annual meeting yesterday, said he's "bullish" about the future in that key market despite sharpened competition -- a veiled reference to rival Metro Inc.'s recent acquisition of 236 A&P Canada stores.
"Irrespective of the recent changes in the competitive landscape," Mr. McEwan said, "we remain committed to executing our food-focused strategy while continuing to invest aggressively in the growth of our business in Ontario."
Industry observers say Sobeys lost out in bidding for A&P Canada as Metro shelled out $1.7-billion and solidified its standing as the country's No. 3 player.
But Toronto retailing analyst John Winter said it could take Metro years to fully absorb its acquisition, giving Sobeys and Loblaw Cos. time to improve efficiencies.
In the meantime, he said, Sobeys and Loblaw will likely look to expand their respective holdings in key markets with small tuck-in acquisitions. Prospective targets include Highland Farms and Safeway.
Earlier yesterday, Sobeys reported its profit rose to $48.2-million or 74 cents a share from $46.6-million or 71 cents a share during the year-ago quarter. Sales jumped nearly 10 per cent to $3.3-billion from $3.01-billion on company-wide merchandising efforts. Three new stores were opened and three expanded.
Thursday, September 8, 2005 Page B9
Canadian Press
STELLARTON, N.S. -- Sobeys Inc., Canada's second-largest supermarket chain, says it's ready to take a bite out of the competition -- particularly in the cutthroat Ontario market -- with an aggressive merchandising plan that helped it ring up a higher first-quarter profit.
CEO Bill McEwan, addressing shareholders at the company's annual meeting yesterday, said he's "bullish" about the future in that key market despite sharpened competition -- a veiled reference to rival Metro Inc.'s recent acquisition of 236 A&P Canada stores.
"Irrespective of the recent changes in the competitive landscape," Mr. McEwan said, "we remain committed to executing our food-focused strategy while continuing to invest aggressively in the growth of our business in Ontario."
Industry observers say Sobeys lost out in bidding for A&P Canada as Metro shelled out $1.7-billion and solidified its standing as the country's No. 3 player.
But Toronto retailing analyst John Winter said it could take Metro years to fully absorb its acquisition, giving Sobeys and Loblaw Cos. time to improve efficiencies.
In the meantime, he said, Sobeys and Loblaw will likely look to expand their respective holdings in key markets with small tuck-in acquisitions. Prospective targets include Highland Farms and Safeway.
Earlier yesterday, Sobeys reported its profit rose to $48.2-million or 74 cents a share from $46.6-million or 71 cents a share during the year-ago quarter. Sales jumped nearly 10 per cent to $3.3-billion from $3.01-billion on company-wide merchandising efforts. Three new stores were opened and three expanded.