Cape Breton Post

Sobeys’ parent company plans ahead for grocery war

- BY TARA DESCHAMPS

As the grocery wars heat up with companies across the country ramping up their delivery and e-commerce efforts, Sobeys’ parent company is looking to play the long game.

Empire Co. Ltd. is waiting for the spring of 2020 to roll out its online grocery business that will be run in partnershi­p with British firm Ocado, said CEO Michael Medline on an earnings call Wednesday.

“I’d rather be up and running with our system today, but I don’t want to put mediocre systems across the country when there’s much more modern ways to win over the customer.

“I see this as a marathon, and we’re in the first 100 meters.”

Empire’s chief financial officer Michael Vels further tempered

expectatio­ns by saying “the ecommerce online offering will not be immediatel­y profitable,”

but that the company anticipate­s it will become a “growing and vibrant channel.”

The company’s e-commerce efforts will initially be concentrat­ed on the Greater Toronto Area because Medline indicated “that’s a market we need to and will win,” but he acknowledg­ed “there are three or four other markets in the country that we need to look at.”

He wouldn’t say how fast Empire will launch in other markets, but revealed that the company has secured its first customer fulfillmen­t centre in Vaughan, Ont., a few hundred meters from its existing automated distributi­on centre.

The fulfillmen­t centre will be kitted out with Ocado’s signature robotics, which U.K. reports say can put together an order of more than 50 items within five minutes.

“The issue for e-commerce in this country, in Canada, is that no one has given the customers a fantastic option,” said Medline.

 ?? CP PHOTO ?? Empire Co. Ltd. reported better-than-expected results for its third quarter as its revenue and profits improved compared with a year ago. The parent company of the Sobeys grocery chain says it earned $58.1 million or 21 cents per diluted share for the...
CP PHOTO Empire Co. Ltd. reported better-than-expected results for its third quarter as its revenue and profits improved compared with a year ago. The parent company of the Sobeys grocery chain says it earned $58.1 million or 21 cents per diluted share for the...

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