Retail Insider is streamlining its Canadian retail news from around the web to include a handful of top news stories that can be viewed quickly during the day. Here are the top stories from the past 24 hours.
Exterior of FreshCo grocery store. Photo: Supermarket News
Empire Company Limited, the parent company of Sobeys, has announced strong third-quarter results for fiscal 2025, marking a 3.1% increase in total sales and improved same-store food sales growth. The company reported net earnings of $146.1 million ($0.62 per share), an 8.9% increase from the previous year, despite ongoing economic pressures and shifts in consumer spending.
The continued expansion of its discount banner FreshCo, increased focus on digital transformation, and cost efficiency initiatives have contributed to the company’s stable financial performance.
“We are pleased to see our strong execution continue in Q3, highlighted by improving same-store sales and our ongoing discipline in managing margins,” said Michael Medline, President & CEO of Empire Company Limited.
Sales Growth and Profitability Trends
Empire’s Q3 sales totaled $7.73 billion, up from $7.49 billion in the same period last year. Same-store food sales grew 2.6%, while fuel sales saw a modest 0.8% increase. The company attributed the rise in food sales to its investments in store renovations, technology upgrades, and supply chain efficiencies.
Gross profit increased 4.8% year-over-year, reaching $2.08 billion, with a gross margin improvement to 27.0% from 26.5%. This was primarily driven by operational discipline aimed at reducing shrink, business expansion (including FreshCo and Farm Boy), and the continued rollout of private-label brands under its Own Brands program.
However, adjusted net earnings saw a slight decline, coming in at $146.1 million compared to $153.1 million in Q3 2024. The company attributed this to strategic investments in e-commerce, technology, and loyalty programs, including its growing Scene+ initiative.
Investments in Store Network and Sustainability
Empire continues to prioritize investments in its store network, with a goal to renovate 20% to 25% of its locations between fiscal 2024 and 2026. This includes capital allocated to store enhancements, refrigeration system upgrades, and other sustainability initiatives aimed at improving energy efficiency.
“Our investment in store renovations and sustainability initiatives will ensure we continue meeting evolving customer expectations,” said Medline. “By modernizing our stores and improving operational efficiencies, we are building a more resilient retail network.”
Additionally, the company remains committed to expanding its discount segment, with FreshCo now operating 48 locations in Western Canada, reinforcing its market presence in price-sensitive regions.
Image: Sobeys Orangeville
E-Commerce and Digital Expansion Fuel Growth
Empire’s digital strategy and e-commerce investments have started to pay off, with online sales increasing by 71.9% compared to last year.
While the company initially planned to open a fourth Customer Fulfillment Centre (CFC) in Vancouver, it has paused construction to focus on optimizing existing facilities in Toronto, Montreal, and Calgary. In a strategic shift, Empire ended its exclusive partnership with Ocado, allowing greater flexibility in its e-commerce expansion.
The company also expanded partnerships with Instacart and Uber Eats, completing a national rollout that enables same-day grocery delivery across its key banners, including Sobeys, Farm Boy, Longo’s, FreshCo, IGA, and Foodland.
“Our e-commerce strategy has been adjusted to ensure long-term profitability,” said Medline. “With a more flexible approach, we can better align our digital offerings with customer demand and the realities of the Canadian grocery market.”
Scene+ Loyalty Program Sees Major Growth
Empire’s co-ownership of the Scene+ loyalty program, alongside Scotiabank and Cineplex, has proven to be a key driver of customer engagement. Membership has grown from 10 million to over 15 million members since its launch, enhancing Empire’s ability to offer targeted promotions and personalized offers.
The company is leveraging machine learning and AI-driven analytics to tailor promotions, ensuring customers receive relevant deals based on their shopping habits. This data-driven approach is expected to further improve customer retention and spending.
Financial Stability and Share Repurchases
Empire maintained a stable financial position, with total assets of $16.75 billion. Free cash flow for the quarter, however, declined to $147.7 million from $349.0 million in the previous year, largely due to increased capital investments and lower operating cash flow.
In line with its commitment to returning value to shareholders, Empire repurchased 6.71 million Class A shares as part of its ongoing Normal Course Issuer Bid (NCIB) program.
The Board of Directors also declared a quarterly dividend of $0.20 per share, payable on April 30, 2025.
Outlook: Inflation, Tariffs, and Market Challenges
Looking ahead, Empire remains cautiously optimistic about its performance despite external economic challenges. The company anticipates that recent tariffs imposed by the U.S. and retaliatory tariffs from Canada could increase costs for imported goods, potentially contributing to higher inflation.
As a result, Empire is shifting focus toward increasing its Canadian-sourced products and securing alternative supply chains to mitigate cost increases.
Additionally, the company expects total capital expenditures to reach $700 million for fiscal 2025, with investments directed toward store renovations, e-commerce expansion, and logistics improvements.
“Despite the uncertain economic environment, we are confident in our ability to drive long-term growth through continued investment in our retail network, digital capabilities, and operational efficiencies,” Medline concluded.
Empire’s ability to adapt to changing consumer trends, optimize its supply chain, and enhance its digital presence positions it well for long-term resilience in the Canadian grocery market. As the company progresses through fiscal 2025, its strategic priorities remain focused on expansion, efficiency, and customer engagement.
EXTERIOR OF SOBEYS GROCERY STORE. PHOTO: SUPERMARKET NEWS
The escalating trade dispute between Canada and the United States is having a significant impact on consumer purchasing habits, as sales of American products in Canadian grocery stores continue to decline. The shift comes as shoppers grow increasingly mindful of the origins of their food, according to Empire Company Ltd., the parent company of Sobeys.
“We have heard loud and clear from our customers that they want Canadian products,” said Empire CEO Michael Medline during a conference call discussing the company’s third-quarter earnings. “Sales of U.S. products as a percentage of total sales are rapidly dropping.”
The decline in American product sales comes in response to ongoing tariff disputes between the two countries. Last week, U.S. President Donald Trump imposed a 25% tariff on all Canadian imports, excluding energy and critical minerals. However, this was later revised to exempt goods that comply with the United States-Mexico-Canada Agreement (USMCA) until April 2. In retaliation, Canada has maintained countertariffs on approximately $30 billion worth of U.S. imports.
Michael Medline
Further exacerbating the situation, U.S. tariffs on Canadian steel and aluminum took effect this week, prompting Canada to implement additional retaliatory tariffs on American steel and other goods. These measures are expected to drive up prices for U.S.-sourced products on Canadian shelves, forcing retailers and suppliers to reevaluate their sourcing strategies.
Retailers and Suppliers Adapt to Avoid Price Increases
Empire, which operates grocery chains such as Sobeys, Safeway, FreshCo, and IGA, currently sources about 12% of its products from the U.S. Medline emphasized that the company has already identified alternative suppliers in nearly every product category. Additionally, Empire is pressuring suppliers to ensure that unnecessary price increases do not burden consumers.
Some suppliers are also taking steps to maintain their competitiveness in the Canadian market. Swiss chocolatier Lindt & Sprüngli, for example, has historically imported about half of its Canadian inventory from U.S. plants. In response to the tariffs, the company has decided to shift its Canadian supply chain to source products directly from Europe, bypassing American production facilities altogether.
Canadian-Made Products See Boost in Sales
Retailers have been proactive in guiding consumer behaviour by introducing store signage that highlights Canadian-made products. Grocery giant Loblaw Cos. Ltd., for instance, has rolled out a new “T” symbol on store signage to indicate which products have been affected by tariffs. This approach has contributed to the increasing preference for domestic goods, leading to a decline in sales of U.S. imports.
Empire has also reported a noticeable uptick in demand for Canadian-made products, a trend that Medline attributes to both the trade conflict and the company’s efforts to showcase local brands. “Customers are making a conscious effort to support Canadian businesses,” he said.
While the immediate effects of the trade war appear to be benefiting Canadian producers, Medline cautioned that the larger concern lies in the potential economic impact and consumer confidence. “The uncalled-for tariffs and retaliatory measures pose a real threat to the Canadian economy,” he warned. “While we have a strong plan to deal with the direct impacts, we can’t ignore the broader risks.”
At present, Empire has not observed a significant shift in consumer spending behaviour beyond product sourcing preferences. However, continued economic uncertainty could lead to cautious consumer spending, which may affect overall retail performance in the long run.
Despite the challenges posed by the trade war, Empire has reported strong financial results for the third quarter. The company posted a net profit of $146.1 million, or 62 cents per diluted share, in the 13 weeks ending February 1, compared to $134.2 million, or 54 cents per share, in the previous year.
Same-store sales, which track revenue growth excluding new store openings, rose by 2.6% (excluding fuel sales), while total revenue increased by 3.2% to reach $7.7 billion for the quarter.
Adapting to a Changing Trade Environment
As the trade dispute continues to unfold, Canadian grocery retailers and suppliers are positioning themselves to mitigate its effects. With a growing preference for local products, retailers are working to solidify their supply chains and support Canadian businesses. However, the uncertainty surrounding future trade negotiations means that businesses must remain agile and prepared for potential market disruptions.
“We are adapting quickly and working to ensure that reactionary or unnecessary costs do not reach our customers,” Medline concluded. “Our focus remains on delivering quality products at fair prices, regardless of the challenges we face.”
101 Yorkville Avenue in Toronto, including CityLux Boutique. Photo: Craig Patterson
Retail crime is reaching crisis levels in Canadian cities, with retailers struggling to protect their businesses against increasingly brazen thefts. While mainstream media has reported on some high-profile incidents, the true extent of retail crime remains largely unspoken—many retailers opt not to report incidents, either due to lack of faith in the police response or concerns about escalating the situation. The growing problem is putting immense pressure on independent business owners, who are often left to fend for themselves.
One retailer taking a stand is Sunan Spriggs, owner of CityLux Boutique, a women’s fashion retailer with locations in Toronto’s upscale Yorkville area at 101 Yorkville Avenue and in downtown Vancouver at 1015 Howe Street. Frustrated with the rising tide of thefts at her stores and the lack of meaningful action from law enforcement, Spriggs has begun posting photos of shoplifters online in an attempt to deter crime and recover stolen goods.
Sunan Spriggs
Retail Crime: A Growing but Underreported Crisis
According to Spriggs, theft has become a daily occurrence at both of her locations, but the nature of retail crime varies between the two cities. In Toronto, her store is frequently targeted by well-organized shoplifting rings that scout items in advance and then send in highly skilled thieves to execute the theft. “These people are professionals,” she explains. “They come in, they stand around talking, looking like regular shoppers. They wait for the perfect moment and, within seconds, an item is gone without a trace.”
In Vancouver, she faces a different challenge. “There, it’s more of an issue with addicts and street crime,” she says. “It’s harder to deal with because you don’t know what they’re capable of. You don’t know if they have a weapon or if they’re going to become aggressive.”
Spriggs is not alone in her concerns. In Toronto’s Bloor-Yorkville area, retailers have formed a private WhatsApp group to share information on crime in real time. Members post descriptions and images of shoplifters to alert others about individuals targeting stores. “Every single day, someone in the group is reporting another theft,” Spriggs says. “We’re doing what we can, but the police aren’t helping.”
CityLux at 1015 Howe St. in Vancouver. Image: Apple Maps
Lack of Police Response and Government Roadblocks
Despite the surge in retail crime, Spriggs says police have offered little assistance. “I’ve filed reports, sent in video evidence, and at the end of the day, nothing happens,” she says. “The police have even told me directly that they don’t have time for retail theft.”
The situation is even more frustrating in British Columbia, where the provincial government is considering whether posting images of shoplifters could constitute a breach of privacy. “Instead of cracking down on crime, they’re talking about protecting criminals’ privacy,” Spriggs says. “It’s outrageous. Where’s the protection for us business owners?”
As small retailers struggle with theft and security costs, they face additional barriers that large corporations do not. Many small businesses lack the budget for professional security, and with high insurance deductibles, it often doesn’t make financial sense to file claims for stolen goods. “Our hands are tied,” Spriggs says. “We can’t chase them, we can’t detain them, we can’t post their pictures. So what are we supposed to do—just let them steal?”
Video posted by CityLux Boutique of thefts
Retailers Fighting Back
With few other options, Spriggs has taken matters into her own hands by posting surveillance footage and images of shoplifters on social media. “It works,” she says. “In Vancouver, I had $3,000 worth of merchandise returned after posting photos online. Sometimes they don’t come back, but someone recognizes them and reaches out. In some cases, we’ve even gotten the money back after they sold the product.”
The approach has sparked debate, with some arguing that it could lead to potential lawsuits. “Legally, it’s a grey area,” Spriggs admits. “Some say it could be considered a privacy violation, others say it could be seen as extortion. But I’d love to see anyone try to argue in court that a retailer should be sued for exposing a thief.”
Yorkville Avenue in Toronto. Photo: Craig Patterson
Escalating Crime and the Economic Impact
The financial impact of retail crime is devastating. Many small businesses already operate on thin margins, and the additional costs of theft—along with vandalism and security measures—are becoming unsustainable. “People don’t realize that losing a few thousand dollars in merchandise can be the difference between making payroll and having to let someone go,” Spriggs says. “And when small businesses shut down, the whole community suffers.”
Retail crime also contributes to rising prices, as stores increase costs to offset losses. Meanwhile, consumers who prioritize finding the cheapest deals online—often from overseas companies—further strain local businesses. “If people keep chasing the lowest price from giant retailers or international brands, they’re going to wake up one day and realize that all the small businesses in their community are gone,” Spriggs warns.
Calls for Reform
Retailers like Spriggs are calling for legislative changes to hold repeat offenders accountable. “Right now, if you steal under $5,000, you’re basically given a slap on the wrist,” she says. “That has to change. There need to be real consequences, or people will just keep stealing.”
She also believes the government should step in to support small businesses in combating retail crime. “If they won’t change the laws, at least give us some kind of financial relief,” she says. “Subsidies for security, tax breaks, something. Because right now, we’re on our own.”
Hudson's Bay at Southgate Centre in Edmonton. Photo: Mike Friel
Hudson’s Bay, Canada’s oldest department store chain, is at a pivotal moment as it restructures under the Companies’ Creditors Arrangement Act (CCAA). For loyal shoppers like Edmonton-based Christopher Lui, the decline of Hudson’s Bay has been both frustrating and heartbreaking. Having shopped at the retailer for decades, Lui has witnessed first-hand the store’s transformation, missteps, and eventual financial struggles.
Christopher Lui
Early Signs
Lui recalls the early signs that Hudson’s Bay was losing its grip on Canadian retail. “They actually did a good job trying to maintain things even through the pandemic. They relaunched the rewards program, but the algorithm was off. I would buy something, and instead of getting an offer for something complementary, I would get a discount on the same thing the following week. It just didn’t make sense.”
Another major issue was the deterioration of Hudson’s Bay’s delivery system for online shopping. “They used to rely on Canada Post, then they switched to FedEx or UPS. But suddenly, they moved to Intelcom, which doesn’t even have its own fleet. Deliveries were subcontracted, and packages arrived in minivans,” Lui said. “Tracking was unreliable, and getting updates was nearly impossible.”
The Marketplace Disaster and Website Issues
Hudson’s Bay also attempted to modernize with an online marketplace, allowing third-party vendors to sell through theBay.com. “It was awful. It wasn’t clear if you were buying from Hudson’s Bay or a third-party retailer. The return policies were all over the place, and often, you couldn’t return items at all. Complaints flooded in, and they quietly shut the marketplace down.”
Website functionality was another concern. “Stock locator tools were unreliable. I’d check online, and it would say ‘out of stock,’ but then I’d visit the store and find the item sitting on the shelf. Product descriptions and images were sometimes mismatched, which made shopping confusing.”
On Monday of this week, all escalators and elevators were down at the Hudson’s Bay flagship floor in downtown Vancouver. Shoppers had to walk up a set of fire stairs to get to the 6th floor men’s store. Photo: Lee Rivett
Store Experience: A Rapid Decline in Quality and Maintenance
Lui continued shopping at Hudson’s Bay’s Southgate location in Edmonton, which he considered a flagship store. “It used to have all the big brands—Hugo Boss, Weekend Max Mara, Polo Ralph Lauren, Strellson. But over time, some brands left, and replacements weren’t as strong. They once tried to introduce a new high-priced women’s brand, but it failed after just one season.”
Store maintenance also suffered significantly, affecting the overall shopping experience. “Escalators were broken, elevators stopped working, and water damage became evident. At West Edmonton Mall, I saw buckets catching water leaks. That’s never a good sign.”
Beyond infrastructure, the store environment itself deteriorated. “Carpets were worn out, lighting was dim in some sections, and fitting rooms often looked neglected. The once-elegant atmosphere of Hudson’s Bay had been replaced with something that felt neglected and outdated,” Lui explained.
Customer service also became a pain point. “It used to be that you could find well-trained, helpful sales associates, but in the last few years, that changed. Staff seemed to be stretched thin, making it difficult to get assistance. And when you did, they didn’t always have the product knowledge they once had.”
Hudson’s Bay also scaled back in-store services that once differentiated it from competitors. “They used to have more personalized services, whether it was tailoring, beauty consultations, or personal shoppers. But those have either disappeared or been scaled back to the point where they don’t provide the same value anymore.”
Lui also lamented the lack of innovation in the in-store shopping experience. “Retailers like Holt Renfrew and Simons have updated their store layouts to feel more modern and inviting, while Hudson’s Bay stores feel stuck in the past. Instead of creating an inviting atmosphere where customers want to linger, it feels like they’ve just let everything age.”
An empty Hugo by Hugo Boss designer area at Hudson’s Bay Queen Street.
A Mishandled Credit Card Transition
A critical misstep was the transition of the Hudson’s Bay credit card to Neo Financial. “With the old system, you could pay your bill in-store, which kept customers coming back. But Neo Financial moved everything online, which alienated older customers who struggled with digital banking. There was no real incentive to sign up for the new card, and the rewards weren’t competitive.”
Lui noted that the transition process itself was also problematic. “When they switched over, there was confusion about existing accounts, payments, and how customers could access their statements. Many people, especially seniors who relied on in-person banking, struggled to set up their online accounts. Customer service wait times increased, and the lack of a physical payment option meant fewer trips to the store.”
Beyond accessibility, the perks of the Neo Financial card failed to attract shoppers. “The previous credit card programs had better rewards and a more straightforward redemption system. The Neo card had limited in-store benefits, and compared to other rewards programs, it just wasn’t competitive. If I can earn better rewards on another card, why would I use Hudson’s Bay’s credit card?” Lui said. “It felt like they launched this with minimal thought to their loyal customers.”
The Decline of the Gift Registry and Changing Consumer Habits
Hudson’s Bay’s gift registry, once a major draw for engaged couples, has also fallen out of favour. “They outsourced it to MyRegistry, and it’s just not the same. People used to gift fine china and housewares, but younger generations don’t want those items. Weddings have changed, and so has demand. Hudson’s Bay failed to adapt.”
Lui noted that in past decades, the Hudson’s Bay gift registry was a key part of wedding planning for many Canadians. “It was seamless. Couples would go to a Hudson’s Bay store, select items in person, and guests could purchase them either online or in-store, knowing the couple would receive exactly what they wanted. It was well-integrated into Hudson’s Bay’s retail experience, and it helped build long-term customers.”
However, as lifestyles changed, so did consumer needs. “Millennials and Gen Z don’t register for formal dinnerware anymore. They want experiences, travel, and cash gifts instead. Hudson’s Bay didn’t update their registry model to reflect this shift, and outsourcing it just made it feel like an afterthought,” Lui explained.
Several brands pulled product from Hudson’s Bay’s Vancouver store this week. Photo is of the 6th floor men’s store, by Lee Rivett
Is There Hope for Hudson’s Bay?
Lui still believes Hudson’s Bay could have a future, but only if it adapts. “They should focus on smaller, more curated stores and strengthen their online presence. They need to make cross-shopping between in-store and online seamless. Instead of home delivery, let customers pick up and try items in-store, reducing returns.” “The online presence could be strengthened by utilizing Augmented Reality (AR) for virtual try-ons (e.g., fashion, makeup, or furniture placement).”
Experiential retail could also be a solution. “Department stores overseas have restaurants, wine bars, and experiences that make people want to visit. Hudson’s Bay used to have in-store cafes, but those disappeared. Nordstrom did this well before closing in Canada.”
Additionally, Hudson’s Bay must rethink its product assortment. “They need to bring in brands that resonate with younger shoppers and balance affordable fashion with high-end options. Stores like Simons have successfully blended trend-driven styles with accessible price points. Hudson’s Bay should take note.”
Another crucial element is customer service. “Hudson’s Bay used to be known for its service, but that has diminished over time. If they improve staffing levels, train employees properly, and provide personalized shopping experiences, they might regain customer trust.” “Using Artificial Intelligence could help with personalizing customer service. An AI-powered chat or video calls with a virtual shopping assistant could offer suggestions and personalized recommendations from the entire store and even across categories.”
Lui also suggests better leveraging loyalty programs. “Their rewards system could be improved by expanding partnerships beyond Hudson’s Bay stores. Allowing customers to earn and redeem points at other retailers, airlines, or even restaurants could boost engagement and keep shoppers invested.”
As Hudson’s Bay moves through restructuring, its future remains uncertain. For Lui, Hudson’s Bay’s story is a cautionary tale of how a once-dominant retailer lost its way. “The consumer changed, and Hudson’s Bay didn’t keep up. But if they rethink their strategy, there’s still a chance to survive. The question is: will they?”
Dax Dasilva, Founder of Age of Union and Wes Sechrest, Chair and CEO of Re:wild (CNW Group/Age of Union Alliance)
Canadian non-profit environmental organization Age of Union, led by Emmy award-winning executive producer and Lightspeed Commerce Inc. CEO Dax Dasilva, has announced a strategic partnership with global conservation organization Re:wild. The collaboration, revealed at the South by Southwest (SXSW) Convention in Austin, Texas, will merge Age of Union’s expertise in storytelling and grassroots conservation with Re:wild’s extensive scientific and environmental initiatives.
Re:wild, co-founded by a team of conservation scientists alongside Leonardo DiCaprio, has made significant strides in protecting wildlife and ecosystems worldwide. Through this new partnership, both organizations aim to expand their impact, mobilizing resources, amplifying conservation efforts, and inspiring action through immersive storytelling.
Commitment to Protect Madagascar’s Biodiversity
The first major initiative under the Age of Union and Re:wild collaboration is a USD 1 million investment dedicated to protecting Madagascar’s fragile ecosystems. Madagascar, home to some of the world’s most unique yet endangered species, has lost over 90% of its original forest cover due to deforestation and unsustainable land use. To counteract this, Age of Union and Re:wild will support conservation programs focused on forest restoration, species protection, and local economic development.
The investment will be allocated over five years, with an initial USD 200,000 set for 2025. This funding will help:
Strengthen the management of key biodiversity sites in Madagascar’s eastern rainforests.
Support species conservation initiatives through the newly established “Madagascar Biodiversity Action Fund.”
Expand community-led conservation programs that balance environmental protection with sustainable economic growth.
Dasilva, who personally visited Madagascar in 2024 alongside Re:wild’s Chief Conservation Officer Russell Mittermeier, emphasized the urgency of action. “Madagascar is one of the most biodiverse places on Earth, yet it faces severe environmental threats. Our partnership with Re:wild is about scaling solutions that work and empowering local communities to protect their own ecosystems,” he stated.
Strengthening Global Conservation Efforts
Through this partnership, Age of Union and Re:wild will integrate their conservation models to maximize effectiveness. Key areas of collaboration include:
Scaling Conservation Funding – Re:wild will oversee financial and technical aspects to unify donor efforts and streamline project execution.
Enhancing Scientific Impact – Age of Union’s initiatives will align with Re:wild’s conservation frameworks to ensure measurable outcomes.
Expanding Storytelling and Advocacy – Age of Union will continue its emphasis on conservation-focused storytelling through films, immersive art installations, and global awareness campaigns.
Re:wild CEO and Chair Wes Sechrest highlighted the synergy between the two organizations: “Under Dax Dasilva’s leadership, Age of Union has developed an incredible network of conservation initiatives that complement Re:wild’s global strategy. By working together, we can amplify our impact and drive meaningful change for the planet.”
Launch Celebration and Future Outlook
To celebrate the partnership, Age of Union and Re:wild will co-host an exclusive event on March 14, 2025, in downtown Austin, Texas. The evening will feature Age of Union’s immersive art exhibit The Black Hole Experience (BHX) Season 2, a live discussion panel, an auction, and a performance by renowned DJ Tiga.
Looking ahead, the two organizations plan to expand their collaborative efforts beyond Madagascar, targeting critical biodiversity regions across Canada, Indonesia, the Democratic Republic of Congo, Peru, Haiti, Trinidad, and West African waters. With Age of Union’s mission to unite humanity with nature and Re:wild’s focus on large-scale ecological restoration, the partnership aims to reshape the global conservation landscape.
EXTERIOR OF SOBEYS GROCERY STORE. PHOTO: SUPERMARKET NEWS
Empire Company Limited (TSX: EMP.A) announced on Thursday its financial results for the third quarter ended February 1, 2025. For the quarter, the company recorded net earnings of $146.1 million ($0.62 per share) compared to $134.2 million ($0.54 per share) last year. For the quarter, the company recorded adjusted net earnings of $146.1 million ($0.62 per share) compared to $153.1 million ($0.62 per share) last year.
Michael Medline
“We are pleased to see our strong execution continue in Q3, highlighted by improving same-stores sales and our ongoing discipline in managing margins,” said Michael Medline, President & CEO, Empire.
Empire is a Canadian company headquartered in Stellarton, Nova Scotia. Empire’s key businesses are food retailing, through wholly-owned subsidiary Sobeys Inc., and related real estate. With approximately $31.1 billion in annual sales and $16.8 billion in assets, Empire and its subsidiaries, franchisees and affiliates employ approximately 128,000 people.
The company said it is continuing to enhance data capabilities and deepen the understanding of customers, allowing it to effectively capture emerging trends. It said it aims to grow total adjusted EPS over the long-term through net earnings growth and share repurchases.
“Over recent years, the Company has accelerated investments in renovations, conversions, and new stores along with store processes, communications, training, technology and tools. Investing in the store network will remain a priority, demonstrated by a sustained emphasis on renovations and continued new store expansion. The Own Brands program enhancement will remain a priority through increased distribution, shelf placement and product innovation,” Empire said in a news release.
“The Company intends to invest capital in its store network and is on track with its plan to renovate approximately 20% to 25% of the network between fiscal 2024 and fiscal 2026. This capital investment includes important sustainability initiatives such as refrigeration system upgrades and other energy efficiency initiatives.
“For fiscal 2025, capital spend is expected to be approximately $700 million, with approximately half of this investment allocated to renovations and new store expansion, 25% allocated to IT and business development projects and the remainder allocated to central kitchens, logistics, sustainability and e-commerce. The Company is on track with its plan to renovate approximately 20% to 25% of the network between fiscal 2024 and fiscal 2026.”
Regarding its financial results, Empire said food sales for the quarter increased by 3.1% primarily driven by positive growth across the business, particularly in Full-Service and FreshCo. Fuel sales for the quarter increased by 2.7% driven by higher fuel prices and higher volume compared to the prior year.
Gross profit for the quarter increased by 4.8%, primarily driven by higher sales, strong performance and operational discipline aimed at reducing shrink, and business expansion (Farm Boy, FreshCo and Voilà). Gross margin for the quarter increased to 27.0% from 26.5% in the prior year primarily as a result of disciplined execution and targeted efficiencies in our stores aimed at reducing shrink. Excluding the mix impact of fuel sales, gross margin for the quarter was 43 basis points higher than the prior year.
Voilà by Sobeys and Voilà par IGA promises to help Canadians stay one step ahead of their busy lives, underscored by a new tag line “Your groceries delivered. Just like that.” (CNW Group/Empire Company Limited)
“Voilà, the Company’s online delivery business, has three active CFCs located in Toronto, Montreal and Calgary. In the fourth quarter of fiscal 2024, the Company decided to pause the opening of its fourth CFC in Vancouver, British Columbia to focus efforts on driving volume and performance in its three active CFCs. Construction of the external building for the fourth CFC has been substantially completed with the internal work related to the grid build and robot commissioning not yet started. Once e-commerce penetration rates in Canada increase, the Company will be in a position to make a decision quickly on when it will proceed with the opening of its fourth CFC,” said Empire.
“Since fiscal 2018, the Company has been expanding its FreshCo discount format to Western Canada and its significant growth has been driven by store conversions and regional expansion. The value proposition and strong multicultural assortment, along with the addition of the Scene+ loyalty program, has supported the growth and expansion of the discount format. As at March 12, 2025, FreshCo has 48 stores operating in Western Canada and the Company expects to achieve its original targeted growth of converting up to 25% of 255 Safeway and Sobeys Full-Service format stores in Western Canada over the next several years.
“Recent imposition of tariffs by the United States government and retaliatory tariffs by the Canadian government are expected to create volatility in the Canadian economy, including higher future costs for importing goods, potentially contributing to higher inflation if increased costs are passed to Canadian consumers. The timing and duration of increased tariffs create financial uncertainty for Canadian companies, and may lead to potential job losses, reduced economic activity, and weakening confidence in the future, and could disrupt supplier relationships and the supply chain, and this may increase the volatility in the Company’s operational results. Currently, approximately 12% of the Company’s annual sales are related to goods sourced from the United States. The Company continues to focus on reducing this percentage by promoting local and Canadian products or by seeking alternate sources of supply outside the United States.”
Founded in 1963, Empire Company Limited has grown into a major player in Canadian retail through a series of strategic acquisitions and investments. The company owns, affiliates, or franchises more than 1,500 stores across Canada, operating under various banners including Sobeys, Safeway, IGA, Foodland, Farm Boy, FreshCo, Thrifty Foods, and Lawtons Drug.
Photo Credit: Olivier Blouin - Birks’ Royalmount store facade. (CNW Group/Birks Group Inc.)
Birks has become the latest of a number of retailers to shout out its proud Canadian heritage.
Nearly 50 years ago, Birks, Canada’s leading designer of fine jewellery, bridal jewellery and gifts, took out full page advertisements in Canadian newspapers across the country to mark Canada Day, celebrating national pride and the company’s Canadian heritage, said the company in a recent news release.
“Birks, which was founded in 1879, has been a part of celebrating Canadians’ special moments for over 145 years. Last week, on March 5th, Birks felt it was the right moment to reprint this message of Canadian pride, hope and unity,” it said.
“The copy from the original advertisement stated, “We are too young not to be enchanted with what’s ahead. Not naïve enough to be unaware of growing pains. And certainly not so old that we consider every setback a mortal blow. Our future is exciting because it is built on the kind of dialogue which must inevitably become constructive and progressive. Let us all look upon his moment as a gift to widen our ability to understand…. and broaden our capacity to think as big as the country in which we live.” A new tag line was added, “Together with you, proudly Canadian, now and always”.
Birks said it also developed a companion video which was posted on their social media platforms, focusing on Canadian heritage – Hockey, Expo ’67, Canadian Olympic athletes, Canada’s 150th birthday and the beauty of the Canadian landscape, which has always served as the inspiration for Birks’ jewellery designs.
Katie Reusch
“As a proud Canadian company, we feel it is important to state our values and stand with all Canadians,” said Katie Reusch, Birks Senior Director, Marketing and Communications. The campaign has tapped into a wellspring of national pride, receiving nearly 1 million views on social media so far. “It is so inspiring to read the comments people have shared that reflect an inspired and unified Canada. That as a country, we believe in a strong future.”
“When my mother was graduating university in the 1930s, her parents wanted to give her a special piece of jewellery. They lived in rural Manitoba, but they had a catalogue from Birks. The store in Winnipeg sent them two sets to choose from! All on an honour system. They chose an absolutely stunning necklace and bracelet with green and blue stones that she wore on every special occasion, and multiple generations since have worn on our wedding days.”
“Thank-you for reposting. My late uncle’s 1928 signet ring, my late mother’s 1946 diamond ring and wedding band, my 1980 wedding band-all Birks. Thank-you. I wear them with pride.”
“We have a deep affection for Canada, a country that fills us with pride and joy. The beautiful landscapes, diverse cultures, and welcoming communities make us proud to call ourselves Canadian. With its iconic maple leaf and rich heritage, Canada holds a special place in our hearts.”
In response to the outpouring of national pride, Birks said it is planning on relaunching their iconic maple leaf collection, with a broach expected to launch in the spring.
Retail Insider is streamlining its Canadian retail news from around the web to include a handful of top news stories that can be viewed quickly during the day. Here are the top stories from the past 24 hours.
Residents and businesses in Jasper and Jasper National Park are committed to rebuilding and welcoming visitors to Canada’s Rocky Mountains after the devastating 2024 wildfires. The federal government is responding to the needs of the community by providing significant support to restore the town and strengthen its economy, particularly its vital tourism sector.
Terry Duguid
Terry Duguid, Minister for PrairiesCan and Ministerial Lead for Jasper, announced additional federal funding exceeding $2 million for new initiatives aimed at helping local businesses, improving construction efforts, and boosting the tourism economy. Minister Duguid also unveiled a new land lease agreement to facilitate the development of affordable housing in Jasper.
Retail Pop-Up Business Village to Aid Recovery
Jasper businesses have faced severe challenges due to the 2024 wildfires, including revenue loss, reduced foot traffic, and the destruction of storefronts. To support local businesses in their recovery, PrairiesCan is helping the Municipality of Jasper establish a retail pop-up business village in the downtown core. This temporary space will provide businesses that lost their physical locations the opportunity to resume operations and generate revenue during the peak tourism season.
“The pop-up business village will ensure that Jasper remains open and ready to welcome visitors. It will provide essential services and experiences that both locals and tourists have come to expect,” Minister Duguid said. The site is expected to be operational before the summer tourism season, with approval already granted by Parks Canada and the Municipality of Jasper.
Efficient Construction Initiatives to Support Rebuilding
The destruction of over 30% of Jasper’s structures has created a need for extensive construction efforts. To address challenges related to limited storage for construction materials and prefabrication spaces, PrairiesCan is contributing to the establishment of an interim industrial park. This park will provide businesses and tradespeople with essential storage and workspace for rebuilding operations within the town. Additionally, the Municipality of Jasper will collaborate with Parks Canada to set up staging areas for construction materials and provide temporary accommodations for workers.
Enhancing and Marketing Jasper’s Visitor Experiences
Tyler Riopel
With tourism being a critical driver of Jasper’s economy, the federal government is investing in marketing and promotional efforts to ensure visitors know that Jasper is open for business. PrairiesCan is providing additional funds to Tourism Jasper to enhance its capacity to develop and promote travel packages that will attract regional and international visitors to the area.
Tyler Riopel, CEO of Tourism Jasper, expressed his gratitude: “This funding represents another critical investment in Jasper’s ongoing recovery and long-term economic resilience. The challenges from last summer’s wildfires are still being felt, and continued support like this ensures that our businesses can rebuild, our tourism economy can grow, and our community remains strong.”
Affordable Housing Development to Support the Community
Recognizing the need for long-term housing solutions, Parks Canada and the Municipality of Jasper are working together to rebuild the community with higher density housing. To facilitate this, Parks Canada has leased a parcel of land on Connaught Drive to the Municipality of Jasper for a nominal fee of $1. This land will be used to build a 40-unit affordable housing complex, marking the first stage of a broader strategy to provide long-term housing in the town.
“We are grateful for the Government of Canada’s investment in Jasper’s recovery and growth,” said Richard Ireland, Mayor of the Municipality of Jasper. “This funding will provide vital support to our local businesses, enhance our tourism offerings, and aid in the critical rebuilding efforts following the 2024 wildfires.”
Federal Investment and Future Support
The total funding announced today includes $1,823,678 for the pop-up business village and construction initiatives, and $250,000 for tourism-related projects. This investment builds on previous federal support for Jasper’s recovery, which includes over $160 million for housing, wildfire response, and recovery efforts, as well as $15.2 million for rent relief and $3 million for tourism initiatives.
Paul Butler
Paul Butler, Executive Director of the Jasper Park Chamber of Commerce, emphasized the importance of the continued support: “As Jasper moves from the emergency phase into the recovery phase, initiatives like the pop-up business village and support for enhanced visitor experiences will be invaluable in fueling our local economy so our community can recover and build back better than ever.”
Jasper is now poised to recover and emerge stronger than ever, thanks to the collaboration between the federal government, local businesses, and community leaders. The support provided today marks a critical step in rebuilding this resilient community and ensuring its future economic success.
