Empire Company Limited and its subsidiary Sobeys Inc. have announced a restructuring of their grocery e-commerce operations, including the closure of Alberta facilities and an expansion of third-party delivery partnerships, as part of a strategy to improve profitability and better serve online customers.
The company said the changes are expected to deliver roughly $95 million in annualized operating income by fiscal 2027, though they will also result in non-cash impairment and related charges of approximately $750 million in the third quarter of fiscal 2026.
Restructuring to boost profitability
“We remain highly committed to grocery e-commerce in Canada and on continuing to make online shopping more convenient for our customers, while delivering immediate bottom-line improvements to our e-commerce business,” said Pierre St-Laurent, president and CEO of Empire.
Empire is immediately winding down its Alberta e-commerce operations, including a customer fulfillment centre in the Calgary area and a smaller support facility in Edmonton. The company will also continue its pause on development of a planned CFC in Vancouver.
The Alberta facilities did not meet the company’s financial expectations, which Empire attributed to the region’s smaller-than-anticipated e-commerce market. The company said it will continue to support Western Canadian customers through third-party delivery partnerships. The closures are not expected to materially affect same-store sales growth.
Focus on Ontario and Quebec
Empire will maintain operations in Ontario and Quebec through its Voilà banner, using existing CFCs in the Greater Toronto and Montreal areas. The company described these operations as growing steadily and forming a key part of its overall offering.
“Customers in Ontario and Quebec love Voilà and, while difficult, the decisions we have made related to our CFC network in Western Canada will help ensure the long-term growth and profitability of our e-commerce business,” St-Laurent said.
“Our focus remains on thrilling our customers while giving them even more reasons to shop our banners through Voilà and third-party marketplaces across the country. This is just the beginning of the next chapter in reshaping our e-commerce strategy as we respond to the evolving needs and expectations of our customers.”
Empire highlighted its strong partnership with Ocado as a foundation for increasing customer engagement and improving productivity and profitability in these markets.
Expanding third-party delivery
The company plans to broaden its e-commerce reach by partnering with DoorDash, with the rollout expected in the coming months. Empire said the collaboration will expand home delivery options for customers nationwide and complements existing third-party partnerships.
“These actions reflect the Company’s commitment to provide customers a variety of e-commerce options, while improving profitability in all of its e-commerce channels,” the company said.
About Empire
Empire Company Limited is a Canadian company based in Stellarton, Nova Scotia. Its primary businesses include food retailing through Sobeys Inc. and related real estate. The company reported approximately $31 billion in annual sales, $17 billion in assets, and employs about 129,000 people across its subsidiaries, franchisees, and affiliates.
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Empire was a late arrival to e-commerce in Western Canada, and it shows. Loblaw’s e-commerce operation in the West is miles ahead and a factor that Empire doesn’t have to contend with in the east is Save-on-Foods, which is very strong online and has a large physical presence across much of Western Canada.