Sobeys
From Wikipedia, the free encyclopedia
| Sobeys Inc. | |
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| Type | Public TSX: SBY |
|---|---|
| Founded | Stellarton, Nova Scotia (1907) |
| Headquarters | Stellarton, Nova Scotia |
| Key people | William G. (Bill) McEwan, President & CEO |
| Industry | Retail (Grocery) [1] |
| Products | Grocery |
| Revenue |  $12.189 billion CAD (2005) |
| Net income | $186.7 million CAD (2005) |
| Employees | 75,000 (2005) |
| Website | www.sobeys.com www.sobeys.ca (Retail site) |
Sobeys TSX: SBY is a Canadian supermarket chain headquartered in Stellarton, Nova Scotia.
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[edit] History
- The company was founded by J.W. Sobey in 1907 as a meat delivery business in Stellarton.
- In 1924 his son Frank convinced him to expand into a full grocery business, serving the industrial Pictou County region. From that point until his death, Frank was the driving force behind the business.
- Sobeys opened its first self-serve supermarket in 1949.
- The chain expanded throughout Atlantic Canada. During most of the second half of the 20th century it was the region's dominant grocer.
- Sobeys had significant stakes in New England grocer Hannaford and Quebec grocer Provigo until the 1990s.
- During the 1980s, Sobeys expanded into southern Ontario, challenging Loblaws on its "home turf", thereby igniting what came to be a nationwide supermarket battle for market supremacy.
- In 1998, Sobeys became the second-largest grocer in the country after purchasing the Oshawa Group, owners of the IGA franchise across Canada, along with several regional chains in Ontario, in addition to various food service and wholesale companies.
- The company currently operates more than 1,300 stores in ten provinces and distributes goods to thousands of wholesale customers.
In 2005, Sobeys lost a bidding war with Metro to acquire A&P Canada, including Dominion Stores in Ontario. Sobeys had actually made a higher all-cash offer, according to The Globe and Mail, but A&P U.S. ultimately accepted Metro's cash-and-stock offer instead; the Sobey family was apparently unwilling to cede any control to the Tengelmann-owned chain. [1] Though Sobeys remained the second largest grocery chain in Canada, it was in third place in most of the provinces outside the Atlantic, and the successful purchase of A&P Canada would have helped to bolster its position in Ontario.
[edit] "Ready to serve" initiative
In 2002, Sobeys stores undertook major changes in its appeal, attitude, and feel, reportedly an attempt to emulate the successful moves of the Publix chain in the southern U.S. - which serves at least one member of the Sobey family when at his Florida vacation home. [2] This was the introduction of "Ready to serve". It was highly stressed upon introduction that was not simply a new slogan or catch-phrase, but a new operating strategy; focusing on superior customer service. Loblaws, its major competitor, has much larger stores and puts an emphasis on low prices. Sobeys decided to de-emphasize the price/size war in favour of a customer service upgrade. Even with a larger focus on service, Sobeys' prices still remain competitive.
- Uniforms, previously very formal, were changed to more casual attire (green Sobeys jacket or t-shirt over black t-shirt and black jeans with black sneakers or shoes). As with Loblaws, this may occasionally be exchanged for a different T-shirt tying in with an ongoing promotion, e.g. the semi-annual Inspired by Compliments flyer.
- All signs and advertising were drastically changed to encompass the new superior customer service.
- The Front-End Manager, who did the majority of customer service, was retitled "Customer Experience Manager".
- Wireless headsets and phones were introduced and every employee is trained to be very customer-oriented. Cashiers are required to greet, converse with, and help out customers to the extent of their ability. Other departments are also required to provide the customer with excellent and friendly service.
- The logo for Sobeys itself was also changed. The four green circles were dropped and the logo simply consists of the word "Sobeys" (The S in the logo was altered slightly to curve around the o). "Ready to Serve" stood as part of the logo itself. (It should be noted that the four green circles were retained in the corporate logo of Sobeys Inc.)
In September 2006, Sobeys introduced a new slogan "Just add Sobeys," as well as a revamped website, and a new advertising campaign with "quick and simple food tips." The "Ready to serve" slogan is no longer added to the signage of new stores, which simply read "Sobeys".
* Some details may vary in different parts of Canada. Information is based on store designs and policies of stores in Newfoundland and Labrador and Ontario.
[edit] Company
[edit] Compliments brand
Sobeys' private label products are branded Compliments.
- Compliments was formerly known as Our Compliments, a brand acquired from Oshawa Group. In Sobeys stores, it succeeded the Our Best brand, which itself succeeded the Sobeys brand.
- Compliments Value, lower-price goods. Until March 2005, branded under the Smart Choice label, which was obtained by Sobeys in the Oshawa Group acquisition.
- Compliments Sensations, a premium-tier expansion to the Compliments brand, introduced in November 2005.
- Compliments Balance, a health-conscious brand, introduced in May 2006. These products are evaluated by the Heart and Stroke Foundation, based on Canada's Food Guide. All bear the Health Check symbol.
- Compliments Organic, also introduced in 2006, is an expansion of organic foods certified by Quality Assurance International.
- Compliments Seasonal Collection, special products only available during the Christmas season from November to early January. Introduced in late 2005.
- Private-label soft drinks in Atlantic Canada are branded Big 8. Elsewhere, they are part of the Compliments family.
[edit] Other supermarket banners
In addition to the Sobeys banner, Sobeys Inc. also operates supermarkets under the following banners:
- IGA is Sobeys' main brand in Quebec. There are also 90 IGA stores in Western Canada and 115 IGA stores in Ontario. Sobeys have announced they plan to convert most of the remaining Ontario IGA stores to one of their other banners. [2]
- (At the time of the Sobeys takeover of the Oshawa Group, all IGA locations in Atlantic Canada were purchased separately by Loblaws for competition reasons. Loblaws has converted these Atlantic Canadian IGA locations to one of their own banners. The Sobeys location in the mainly French-speaking Edmundston, New Brunswick was subsequently branded IGA and reports to Sobeys Quebec division.)
- IGA Extra, in Quebec
- Tradition Markets, small food market in Quebec
- Price Chopper, a smaller, discount grocery store.
- Foodland, small markets, located in Atlantic Canada and Ontario
- TRA, a chain of wholesale outles in Atlantic Canada, as well as a distribution company (which delivers to retail outlets throughout the maritimes (Corner Stores, and gas stations)
- Food Town, in Western Canada
MarketPlace IGA stores in British Columbia, despite carrying Compliments products, are independently owned by H.Y. Louie. [3]
[edit] Retired banners
- Commisso's Food Markets in Ontario, stores are currently being rebranded as Sobeys and Price Chopper.
- Garden Market IGA in Western Canada, stores were rebranded as Sobeys
- Knechtel, a small-market grocery store chain under Oshawa Group, folded into the Foodland banner. Locations were in Southern Ontario towns and cities, such as Windsor, Woodstock, London, Chatham, Ridgetown, Blenheim, Amherstburg, Leamington, Kingsville, Ingersoll, Tillsonburg, and St. Thomas.
- Lofood, a smaller discount grocery store rebranded as Price Chopper.
- Green Gables, convenience store chain, stores became part of the Needs Convenience banner.
[edit] Other Sobeys-owned banners
Sobeys Incorporated also owns the Needs Convenience, Kwik-Way, and BoniChoix convenience store chains as well as the Lawtons drug store chain in Atlantic Canada.
[edit] Griffins
Also, in areas where tobacco sales are more restricted, such as New Brunswick , Newfoundland and Labrador and Prince Edward Island cigarettes and other tobacco products are sold in a separate store, owned and operated by Sobeys Inc., called Griffins. These stores are a part of the Sobeys store but are only accessible from the outside due to laws in these provinces which prevent any store that has a pharmacy to also sell tobacco products.
[edit] Fast Fuels
A number of stores in Nova Scotia and New Brunswick have a gas bar, Sobeys Fast Fuels, which offers a Sobeys coupon of 3.5 cents for each litre purchased.
[edit] Empire Group of Companies
The Sobeys conglomerate is owned by Empire Company Limited, which is controlled by the Sobey family. In addition to Sobeys, the Empire Company also owns Empire Theatres, Canada's second-largest movie theatre chain, as well as many commercial retail properties through subsidiary Crombie REIT.
[edit] Sobeys Express
Sobeys also owns and operates another convenience store called Sobeys Express. The stores carry items commonly found in a convenience store but also include a mini deli, mini bakery, as well as produce. The first trial locations opened in early 2004 in Truro, Nova Scotia and Moncton, New Brunswick but the chain has since expanded nationally. The trial locations were converted Needs Convenience stores.
