Sobeys Keep Closing More Stores

Sobeys Keep Closing More Stores

Postby jon » Tue Sep 09, 2014 6:02 pm

Sobeys continues to quietly close more of its stores. Although the very recent, but completely unexpected, closure of a specialty one in downtown Edmonton got noticed by the media, the upcoming (Oct. 2nd) closure of my closest Sobeys seems to have gone unnoticed.

These are on top of the 50 or so "underperforming" Sobeys and Safeways formally announced for closure in June.

In this particular case, the store did well initially as an IGA Garden Market, when the only competition was a rundown Safeway that had been a cash cow because of its captive audience. That Safeway has since spruced itself up and really improved its service. A Save-On opened 10 years ago kiddy-korner from the Sobeys, literally buying their way into the market with 15% Tuesdays which coincided with both the major specials and the biggest points offerings of each month. Since then we have seen another Safeway, a Walmart Supercentre and, what I believe was the final nail in the coffin, a well-run Superstore that just opened at Christmas.
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Re: Sobeys Keep Closing More Stores

Postby Tom Jeffries » Tue Sep 09, 2014 8:52 pm

Safeway had it all their way on Davie Street, for many years - with their main competitor being a surly Super Valu.

Now The Loblaw folks have taken over the old Super Valu, and Safeway is deserted. Their service was alway sloppy and now, they are about to get a shot. I feel sorry for the staff at a lot of under performing retail stores.

Denman Street is a disaster.
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Re: Sobeys Keep Closing More Stores

Postby jon » Fri Sep 12, 2014 8:25 am

TD just updated their thoughts on Sobeys parent Empire this morning, including this tidbit:
Store closures of this magnitude are uncharacteristic of a company that has been the most aggressive of the traditional grocers in growing square footage, leading us to believe that management is finally reacting to the pressure of significant profit erosion.
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Re: Sobeys Keep Closing More Stores

Postby radiofan » Fri Sep 12, 2014 11:34 am

When I was in Camrose last week I noticed the Sobeys there was recently closed. Granted, it was only about a block away from the Safeway.

Also, in the Calgary Sobey's flyer it mentioned the Lakeview Sobeys (on Crowchild SW) would have a new name this week .. no idea what it's become, but it's no longer on the Sobeys website.
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Re: Sobeys Keep Closing More Stores

Postby drmusic » Fri Sep 12, 2014 12:14 pm

radiofan wrote:When I was in Camrose last week I noticed the Sobeys there was recently closed. Granted, it was only about a block away from the Safeway.

Also, in the Calgary Sobey's flyer it mentioned the Lakeview Sobeys (on Crowchild SW) would have a new name this week .. no idea what it's become, but it's no longer on the Sobeys website.


In Saskatchewan Sobeys locations have closed in Moose Jaw and Prince Albert, both smaller cities that also have Safeway.
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Re: Sobeys Keep Closing More Stores

Postby The Palliser Square » Fri Sep 12, 2014 4:17 pm

I guess like the folks at NewCap and their acquisitions from Bell, the Sobey's people are finding out real fast that they paid way too much and the return is small.

Also, the Sobeys name means squat in the West. There was nothing wrong with the IGA Marketplace branding in Alberta. No need for the name change.

They have kept the Thrifty Foods branding in BC, but have replaced all the Thrifty house brand items with crap with the Compliments name.

The Compliments stuff is now showing up in Safeway stores too. Bad move.
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Re: Sobeys Keep Closing More Stores

Postby Mike Cleaver » Fri Sep 12, 2014 6:20 pm

Selling groceries now is the most competitive business in Canada and the US and probably in many other countries as well.
Sobeys and the Westons pretty much have a lock on the business in this country but WalMart and Target are starting to expand their penetration.
Then there's the high end guys, Whole (paycheck) Foods and various other local spinoffs across the country including places such as Trader Joes in the US.
Best way to save and get good quality, check the on-line fliers and only buy the specials.
And shop at the local mom and pop food stores and the farmers markets.
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Re: Sobeys Keep Closing More Stores

Postby Tom Jeffries » Fri Sep 12, 2014 7:30 pm

Do you notice that at Supermarkets you are forced to walk through the flowers, and fruit and vegetables, as you enter the store?

Why?

Biggest profit margins.

You can't get rich selling Tide. (*I Loved working at Loblaws, as a High school kid. I learned a lot and made peanuts. Ottawa in the summer. Talk about steamy!)

The Grocery Wars are overdue - and now that California has had some rain - maybe the price pressure will ease up.
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