Empire Company Limited is making a strategic move into Quebec’s value grocery segment with an agreement to acquire Mayrand Food Group Inc., marking the company’s first meaningful entry into discount and warehouse-style food retail in the province.
The transaction, announced through its subsidiary Sobeys Inc., follows a court-supervised sale process after Mayrand entered creditor protection, positioning the deal as both a strategic expansion and an opportunistic acquisition.
The deal remains subject to customary closing conditions, including court and regulatory approvals, and is expected to close in the first quarter of fiscal 2027.
A Strategic Entry into Quebec’s Value Segment
Empire has long operated in Quebec through full-service banners such as IGA, though it has not had a meaningful presence in the discount segment. That space has largely been dominated by entrenched competitors, leaving a gap in Empire’s provincial portfolio.
By acquiring Mayrand, Empire effectively bypasses the challenges of launching a new discount banner in a highly localized and competitive market. Instead, it gains an established Quebec brand with more than a century of operating history and strong regional loyalty.
“Mayrand is a respected Québec institution with deep local roots and a loyal customer base,” said Luc L’Archevêque, Chief Customer Officer, Empire. “This transaction allows the Mayrand brand to continue serving customers and communities while benefiting from Empire’s scale, operational expertise, and long-term commitment to food retail in Québec.”
Distressed Sale Creates Opportunity
Mayrand entered creditor protection in 2025, leading to a court-supervised sale process that allowed potential buyers to acquire the business as a going concern. The company continued operating its stores throughout the process, maintaining service for both retail and foodservice customers.
For Empire, the timing creates a relatively low-risk entry into a new segment, with existing infrastructure, real estate, and customer relationships already in place. It also reflects a broader trend in Canadian retail, where large operators are using acquisitions to expand into new formats rather than building from scratch.
A Hybrid Model That Extends Beyond Traditional Grocery
Mayrand’s format differs from conventional discount grocery banners. Its large-format “food depot” stores operate without membership requirements and serve both households and professional foodservice customers.
This hybrid model allows Empire to access a broader customer base, including restaurants and small businesses, while also appealing to value-focused consumers seeking bulk purchasing options.
The model also reintroduces Empire to a segment it has had limited exposure to in Quebec in recent years, particularly on the foodservice side, which remains a significant and resilient market.
Strategic Real Estate in Key Montreal Markets
The acquisition includes four large-format stores in Anjou, Laval, Brossard, and Saint-Jérôme. These locations provide immediate scale in the Greater Montréal Area, where suitable large-format retail space is increasingly difficult to secure.
Rather than pursuing a greenfield expansion strategy, Empire is acquiring a ready-made network of high-traffic locations that can serve as a platform for future growth in the warehouse and value segment.
Empire said it intends to maintain the Mayrand banner as a distinct brand, preserving its identity and positioning within Quebec. At the same time, the business will benefit from Empire’s national capabilities in merchandising, procurement, logistics, and real estate.
Founded in 1914, Mayrand has built a reputation for its broad assortment of local and international products and its strong ties to both retail consumers and foodservice operators. The company employs approximately 300 people across its four stores.
As part of the transaction, Empire said it will ensure continuity for employees while maintaining stability for customers, suppliers, and business partners.
Positioning for a More Price-Sensitive Consumer
The acquisition comes at a time when Canadian consumers are increasingly focused on value, with many shifting toward bulk purchasing and alternative retail formats in response to sustained food price pressures.
Mayrand’s open-access warehouse model positions it differently from both traditional discount grocers and membership-based warehouse clubs, offering flexibility that may resonate with a broad range of customers.
For Empire, the move represents both a defensive and growth-oriented strategy. It strengthens the company’s competitive position in Quebec while adding a new format that aligns with evolving consumer behaviour.
Yet another independent grocer gets eaten by the same few giant companies that control food sales in Canada. Less competition, prices go up. Not sure how this can be presented as good news.
The only way that Mayrand survives as a brand and as a chain is as part of a larger retail group. The company was already in creditor protection so there was 0% chance they would make it on their own. So yes, jobs saved and stores remaining in operation is a good news story.