Business
Sobeys Parent Empire Posts Massive $942.6-million Loss Amid Safeway Struggles
TORONTO — The parent company of grocery retailer Sobeys Inc. has a lingering, severe case of indigestion in the wake of its acquisition of the Western Canadian Safeway chain three years ago, posting a huge quarterly loss Wednesday, taking a $1.3-billion impairment charge and sending its stock into a tailspin.
At the end of the day, Empire Co. Ltd. shares plunged nearly 10 per cent as executives admitted there is much work to be done in order to remedy problems in its supply chain, tweak its house-branded private label products and find the right pricing mix at its stores.
“It’s not simple promotional fixes that will get the job done,” said Empire’s CEO Marc Poulin on a morning conference call with analysts. “It’s more fundamental changes that will adapt the business for our customers.”
Canada’s second largest grocer has suffered amid stiff competition from lower-priced discount chains, such as No Frills and Walmart, particularly in areas of the country where consumers are feeling the oil industry downturn.
To help the situation Sobeys has been running aggressive price promotions at its full-line stores, but it only operates its discount banner FreshCo in Ontario, where discount retailers have been driving the bulk of the growth in Canada’s grocery sector for the last year.
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“We know the overall market continues to experience significant shifts in consumer mindset,” Poulin said.
“People are looking at pricing even more than usually,” he added, citing “an overall customer that is changing the way they are shopping.”
Weakness in the Western Canadian business has weighed on Sobeys’ results for the past three quarters and that got even worse in the fourth quarter, and sales appear to be softening in other regions of the country, Poulin said.
The company will be revamping its distribution and supply chain in Western Canada over the next year, and has lowered prices on produce, meat and in broader groceries. It has renegotiated the allowances it receives from its suppliers, allowing Sobeys to lower its shelf prices and overall costs and improve the chain’s so-called “price perception” among consumers.
But on the pricing front, “a significant amount of heavy lifting remains to achieve traction with our customers over the long term,” Poulin said.
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Meanwhile, industry observers say the initiatives do not appear to have helped Sobeys much thus far.
“They announced an aggressive discount program in Quebec and elsewhere, transferring rebates (on packaged goods sold) in the centre of the store over to the consumer, and I am just not convinced it is benefiting the company,” said Sylvain Charlebois, agriculture expert and dean of management at Dalhousie University in Halifax.
Charlebois added that the acquisition of Safeway seems to have been more challenging for Sobeys than it had initially imagined. “And today is a bit of an admission that they are not really getting the traction they were expecting, and more needs to be done. The situation in Alberta is not helping,” he said.
Charlebois said the problems might have been exacerbated by how the companies operated before the takeover.
“You are looking at two very distinctive cultures and they managed their businesses quite differently. Safeway’s private label strategy was a little stronger and more committed, whereas at Sobeys it seemed like a bit of an enigma, and it felt like they didn’t know what to do with it. That is really different from Loblaw, where you really feel a strong commitment towards the brands.”
Kevin Grier, a food industry analyst based in Guelph, Ont., said price competition in consumer packaged goods has become more intense in recent quarters, leaving Sobeys as a weaker player in the industry.
“When the environment turns competitive, what does Sobeys bring to the table? They don’t have a great discount banner, and conventional banners are the most vulnerable and easy to pick off when times turn tough in terms of competition,” he said. “And Walmart and Costco continue to eat away at grocery retailers’ market share in every quarter.”
In the period ended May 7, Empire reported a loss of $942.6 million, amounting to a loss of $3.47 per diluted share, net of non-controlling interest. That compares with net profit of $55.4 million (20 cents per share) in the fourth quarter of last year.
The woes led to the company taking a $1.3 billion impairment charge in the fourth quarter, coming just months after having to take a third-quarter writedown of $1.59 billion related to the value of Canada Safeway, which it acquired in November 2013.
Empire’s annual fiscal loss amounted to $2.13 billion, or $7.78 per diluted share, compared with net income of $419 million ($1.51) in fiscal 2015.
Sales were $6.28 billion, up 8.9 per cent from $5.77 billion a year ago, helped by an extra week in the quarter compared with 2015.
Same-store sales, a key metric in retail tallying volume at stores open for more than a year, fell 1.8 per cent. At its western Canadian stores, same-store sales, excluding fuel, tumbled 3.6 per cent.
Adjusted net earnings for the quarter were $95.3 million, or 35 cents per diluted share, down from $136.7 million, (49 cents) a year ago.
Full-year sales, covering a 53-week period, versus 52 weeks in fiscal 2015, were $24.6 billion, up 2.9 per cent.
Beauty enthusiasts rejoice! Beauty Week at Hudson’s Bay is back in Toronto for another year. It’s time to stock up on all of your fall essentials and, maybe discover some new ones.
From Friday, August 18 to Sunday, August 27, you can expect a truly elevated beauty experience in-store with incredible special offers, limited-time gifts, and exciting activations.
If you’re a diehard beauty lover, you’ll already know that Hudson’s Bay is the place to shop thanks to its extensive range of over 195 skin and makeup brands from both luxury labels and masstige brands — including Tata Harper, Estée Lauder, YSL, Nars Cosmetics, Bobbi Brown, and so much more.
Throughout The Bay’s Beauty Week, visitors can take in some at-counter activations and interactive expert-led tutorials, where there will be chances to get makeup touch-ups from top-tier brands, try a spritz of the most alluring fragrances, and sample tons of new products.
This year’s Beauty Week highlight is the ‘Best in Beauty’ tote, a meticulously-curated selection of 30 deluxe samples from an array of top-tier brands like Dr. Barbara Sturm and Shiseido spanning skincare, fragrance, and makeup — all in a super sleek bag.
The tote, which is valued at over $300, is retailing for just $39 and is a fantastic way to explore new products (without breaking the bank). However, there is a limited quantity, so if you want to get your hands on one, you’ll need to be fast.
Wondering exactly what Beauty Week’s free gifts with purchases entail? If you spend over $95 at Lancôme, you will receive a six-piece set valued at $130. Or, you can get an Estée Lauder gift valued at $170 with purchases over $80. (And that’s just to name a few.)
If you’re a Hudson’s Bay Rewards member, you’ll also get $20 in Hudson’s Bay rewards when you spend over $100 on beauty.
The Canadian Armed Forces (CAF) have several non-combat jobs, some of which do not require a college degree or past work experience.
Life in the forces has several benefits, such as paid education plans (college, university and graduate-level programs), 20 paid vacation days, health and dental coverage for you and your family, maternity and paternal leave, and pension plans. You can learn more about the benefits in detail here.
And to make it easier to gauge if you qualify, the listings also include related civilian jobs to see if it’s your ideal role.
Financial services administrator
Related civilian jobs: Financial records entry clerk, financial manager, accounting technician, bookkeeper, budget officer, cashier clerk, business planner technician, and verification manager.
Description: You’ll help budget resources for all military activities besides providing financial assistance.
Education: You need to have completed Grade 10.
Duties: As a financial services administrator, you’ll be responsible for bookkeeping and managing budgets. You’ll also provide support in accounts payable and accounts receivable.
Work environment: Those in this role work at CAF bases, on ships or overseas. You might also be expected to help special operation units, recruiting offices, schools, and medical organizations.
Postal clerk
Related civilian jobs: Mail clerk, mail sorter.
Description: You’ll provide postal services to members and their families at bases and establishments.
Education: Grade 10. No previous work experience or related career skills are required.
Duties: As the postal clerk, you’ll handle mail duties.
Work environment: Besides a postal office, you may work on a ship or a mobile postal van. You might be expected to serve with Royal Canadian Navy, the Army, and the Royal Canadian Air Force in Canada and abroad.
Dental technician
Related civilian jobs: Dental assistant, dental hygienist.
Description: You’ll be helping dental officers provide dental services to CAF members, their families, and dependents.
Education: Level II dental assisting diploma from an accredited college or a National Dental Assisting Examining Board (NDAEB) certificate.
Duties: Those in this role will be responsible for various responsibilities, including disinfection and sterilization of dental equipment, applying rubber dams, placing cavity liners, and controlling bleeding. In addition, you’ll assist in laboratory procedures like creating casts, custom trays, and mouthguards.
Work environment: This role will require you to work in a military dental clinic, a Mobile Dental Clinic, an Air Transportable Dental System, or onboard a ship. You might be expected to work on a base in Canada or other operations in other parts of the world.
Human resources administrator
Related civilian jobs: Records administrator, data entry supervisor, receptionist, office manager, executive assistant, payroll clerk, and information management technician.
Description: Provide administrative and general human resources support.
Education: Grade 10. No previous work experience or related career skills are required.
Duties: In addition to human resources administration and services, you’ll be handling pay and allowances, managing automated pay systems, and maintaining personnel records.
Work environment: HR administrators work at all CAF bases in Canada. They also work on ships and overseas to support the Canadian Army, Royal Canadian Navy, or Royal Canadian Air Force operations.
Medical assistant
Related civilian jobs: Emergency medical responder, ambulance and first aid attendant, registered nursing assistant, licensed practical nurse, and hospital orderly.
Description: Successful candidates will help treat the sick and injured in CAF units. You’ll be assisting and supporting nursing and medical officers.
Education: Minimum of Grade 11 biology, Grade 10 physics or chemistry, and Grade 10 math.
Duties: You’ll provide initial care and essential life support treatments in trauma cases. You’ll help with health assessments (hearing and vision tests, perform basic lab procedures, etc.) and initiate and manage medical records and reports. You’ll also be expected to provide support and first aid during training exercises.
Work environment: Medical assistants may serve with the Royal Canadian Navy, the Royal Canadian Air Force or the Canadian Army as part of the Canadian Forces Health Services Group. Those in this role are exposed to the same risks as the forces they support.
Porter Airlines is once again stirring the pot among Canadian airline rivals, now going after Air Canada’s Aeroplan members by offering to match their loyalty status to an equivalent of their own.
The beloved airline, which recently ranked as having the best cabin service in North America, challenged the competition for the second time this year, after previously deploying a similar tactic against WestJet in the spring.
Earlier in April, Porter presented customers with a limited-time offer to match the loyalty status of WestJet’s patrons with VIPorter levels.
Now, they’re offering Aeroplan members to seamlessly transition to an equivalent VIPorter Avid Traveller status based on their existing membership tier.
Members can then take advantage of an array of travel perks that come with flying Porter, including seat selection, baggage, and flight changes.
For those currently holding an Aeroplan membership, there are two ways to acquire the Avid Traveller status for the rest of 2023:
Status-Based Match:
- Aeroplan 25K members = VIPorter Venture
- Aeroplan 35K members = VIPorter Ascent
- Aeroplan 50K, 75K, and Super Elite = VIPorter First
Flight Segments-Based Match:
- 5 flight segments = VIPorter Passport
- 8 segments = VIPorter Venture
- 17 segments = VIPorter Ascent
- 28 or more segments = VIPorter First
Members will have to first submit their applications on Porter’s website. Registration will remain open until September 6, 2023.
In order to maintain their membership level through 2024, customers will have until the end of 2023 to reach the following reduced qualifying spend (QS) targets:
- Passport = $500 in QS
- Venture = $750 in QS
- Ascent = $1500 in QS
- First = $2500 in QS
Over the past year, Porter has launched an aggressive expansion strategy, including everything from introducing longer flights on newly-purchased jet planes flying out of Toronto Pearson, free WiFi, and a new all-inclusive economy experience.
With Canadians losing both Swoop and Sunwing as WestJet incorporates both into their mainline business, Porter’s direct competition is welcome to keep prices competitive.
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