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loblaws sobeys competition (supermarkets)

loblaws sobeys

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Between 2008 and 2011, 12-month (calendar year ) sales at Empire-Sobeys limited ros e 11.50% to $16.2416b 53 weeks ended 2Q12 (Nov 5) up from $15.6407b the year prior. That compares to only 1.5% for Loblaw Companies and 1.6% for Metro Inc. Since 2006 (the first full year that A&P Canada was part of Metro) fiscal year Metro sales ($11.431b) have increased by only 4.3% compared to 24.7% for Sobey's (minor boost for Sobeys came in 2007 when it acquired BC chain Thrifty Foods for $260M; for the past six years Sobeys has led the industry in same-store sales growth). In 2013 Metro Inc net earnings jumped 47.5% to $721.6m however $266.4m was gain from disposal of 11% stake in Couche Tard. Sobeys latest quarterly dividend for 1q2014 is 26 cents, same as 3 months earlier but up from 24c in 3q2013 (24c was unchanged from 2q13 but up from 22.5 cents a share in 3rd, 4th qts of 2012). This is higher than Loblaws (3Q13 stable at 24c but up from 1Q13 22c; dividend had been stuck at 21c for over 6 consecutive sessions until 4Q12 when it was increased to 22c) and Metro (25c Nov.27 same as Jul 2013/Dec 2012 qtr but up vs previous year 21.5c q2q). Fiscal 2013, Empire annual revenue up 8.4% to $17.61b ($17.403b from Sobeys +8.4%, Sobeys same-store sales +1.3%). Fiscal 2012, Empire revenue up 1.8% to $16.25b ($16.06b from Sobeys, same-store sales +1.4%). Fiscal 2011, revenue at Empire up 3% compared to only 1.3% at Loblaws. Most of the increase in Sobeys revenue is coming from 1) Larger new stores (in terms of square footage, closing the gap between it and Superstore 2) Modest inflation 3) Product/services innovation. Latest fiscal year % revenue from other operations - Sobeys 1.2%, Loblaws 2.0%. Interim food retailing sales surpass $8b in 1h2012 $8.09B (+3.3%), investment revenue to $106.4m (+1.4%). Funded debt: 2014: $948.3m (-0.3%) 2013: $969.5m (-14.3%), 2012: $1130.8m (-1.9%), 2011: $1152.4m (-4.3%), 2010: $1204.5m (down). Long term debt: 2014: $870.3m 2013: $915.9m (+3.0%), 2012: $889.1m (-18.5%), 2011: $1090.3m (+32.7%)
Sobeys ends fiscal 2013 on high note, ups quarterly dividend to 26c higher than Metro 25c , Loblaws 22c ! quarterly same-store sales % change Fiscal Period 1 2013 2012 2011 2010 loblaw 2 3 4 1 2.8 1.1 0.1 sobeys 2 3 4 1 metro 2 3 4 food retailing revenue % chg earnings % chg Lob Sob Met Lob Sob Met 8.4 1.9 3.4 3.2 0.4 4.5 19.6 0.8 13.9 1.3 3.8 11.8 2.3 8.8 3.2 1.5 22.7 0.2 10.6

sections: quarterly reports Sobeys Loblaws

major food retailers: assets & long term debt effective income tax rates using most recent quarter as of November 2013: Loblaws 26.7% (vs 27.2%), Sobeys 24.6% (vs 27.4%), M etro 25.7% (vs 24.7%). Same store sales growth last quarter 2012 calendar year: Loblaws 0.0%, M etro +1.5%, Sobeys +0.7%. last 2 quarters as of November 2013 (Sobeys: -0.1%/+0.6% Loblaw +0.4%/+1.1% M etro -1.8%/-0.9%) Sobeys avg # of shares traded was highest in 2010 68.4m vs 67.9m fiscal 2013; 68.2m 2011, 65.8m 2009. corporate locations Nov 2013: Loblaw Cos 570 (-9; 2012: 580, 2011: 584),

1.8 1.3 1.2 0.6 1.5 flat 0.9 1.8

0.7 0.2 0.2 flat 1.7 1.9 1.2 0.7 1.7 1.0 1.0 1.1 0.84 0.1 0.4 1.3 2.5 0.3 flat 0.4 1.0 flat 0.2 0.5 3.2 1.28 0.3 0.3 0.4 1.6 4.0 2.7 0.3 0.5 flat 0.7 0.6 0.5 0.6 Consumer Price Index for Food Purchased At Stores

Canada Quarterly

Loblaw Price Inflation

July 15, 2013 - Loblaw Cos acquires Shoppers Drug Mart for $6.7b cash/debt and $5.7b equity issue (gives Shoppers shareholders 29% of combined company). 1363 locations gives Loblaws


3 months ended November 2011: grocery prices declined 1% at Sobeys despite raw material costs going up. Noname As of Feb 3.1% 44.1m Empire other investments August 2013 Crombie $527. $55m from Landmark. Loblaws gains national mod mod mod share in pharmacy prescriptions: 7% -> 25%. that's in stark contrast to Ontario (40-45%) and Quebec (33%).9 585. No Frills has been in business since its 152 Ontario stores have annual sales of about $3. Super C. 2013 Empire Theaters operates 52 theaters consisting of 434 screens which is down from 53 and 438 Nov 2012. PC (1).0 4. we can estimate Loblaws share at 32% ($2829b in food sales out of $87b in Canada). Brands : Metro .3 2.609b. Metro was calculated using only Metro.8b needed will come from asset sales.3 1.09% 681 (0.2% $2.8 1.6 204. (Groce ry Trade R e vie w June 2010 e dition) Keep in mind fiscal year end dates: Loblaws Dec 29. IGA (1).3 33. Only about 12% of the grocer market in the maritimes is in the discount market. 2012: 473). Western Canada is home to all but 6 of the locations (6 in Ontario).1 1.2% incl 644 95 14.$341. Sobeys was in the cinema business from 1984 until 2013.9% $2.1m (42. November 7.415b.8 billion deal has been made with Safeway for its 223 unit strong Canadian division (213 grocery stores + 10 liquor store).0 1. Thrify (1). as of 2013 Sobeys is at 19% (58% as much food revenue as Loblaws ~$15b vs ~$28b).6m (+2m ) .Selection. grocery 277 (ami 81. Divestments June 27.4 1.8 58. Metro Inc operating income taken as ebit (ebitda + depreciation and ammortization). Sobeys: Compliments (previously known as Our Compliments).2% versus -0.2 0.9m 2011. 10 liquor stores. Genstar 197. pharmacy +3. Sobeys previously stated that $1b of the $5.6 3.7 0. Only 13 of the grocery stores are part of the 213 acquired.7%).2)% 1053 48908 30703 1312 4. 2013 up from $5.3 1. Sobeys May 5.5)% 34806 566 Loblaws retail Metro Inc retail Market Share: using most recent food retailing data available for Canada as a guide and Loblaw claims that 14m or 40% of Canadians shop there each week.1% 392.9 393. M etro Inc total locations September 2013 : supermarkets 635 (-6 : M etro 358 [-12]. Metro Sept 29 (2012/2013) Sobeys retail 2013 fiscal sales oper income oper margin profit same store % locations average size 2012 fiscal sales oper income oper margin profit same store % locations average size 2011 fiscal sales oper income oper margin profit same store % locations average size 2010 fiscal sales oper inc oper margin profit same store % avg size locations 17402.5 4.northamericaninterests. 2011: 629).2 54.5 473. Loblaws: President's Choice. In 2012 a partnership was formed with JC Penny . 2013 .1% 103. money is used to finance Safeway takeover. 236 Shell stations. Loblaws goal for its apparel unit. Sobeys 822 (2012: 839. pro forma annual revenue increases from $17b to $24b.7 2. a consequence of intensified competition. A total of 26 theaters/218 screens were transferred to Cineplex (24/170 in Atlantic Canada).3 69. 2012 . 2013 Theatres sold for $255m $200m from Cineplex.3 billion in 2011. prescr +7.3 35. sobeys food retailing capex: 2013.0% May) . Sobeys 746 (2012: 736.9 5.1m 2012.9 52.8 327 2. Irresistables.Sobeys announces a C$5.0% 297.4 billion but Loblaw Cos doesn't get to reap all the benefits given that the stores are franchised (not corporately run like Superstore).5 2.3 1.3% 1337 21441 15243 425.4 3. 1363 locations gives Loblaws 2 3 4 2348 stores total including 1792 pharmacies (500 flat flat in-store).2%.9 1. Loblaws is expected to spend $110m in 2012 just on improving information technology and product promotions. June 12. flat flat flat July 5 . Richelieu full service supermarkets. Safeway had revenues of $6.3% 1568 19058 16044. Super C 85.5%) 2/11 other other -> store size calculated using info provided in annual reports.Choice Properties (415 prop) more Cos 570 (-9. Food Basics 116. Joe Fresh Style is $1 billion in annual sales.9 3. Also included in the deal are 199 in store pharmacies.4% 1575 18625 15756.2% for Loblaw Cos. Sobeys data from Empire annual information forms 2012.8% incl 11402. 2011: 708).5 1. Excluding all fuel stations Sobeys + Safeway = 1300 to 1523 (May 2013 stores down from 1315 -> 1300).5 loblaws sobeys competition (supermarkets) combined company).4m www.0 515. Excluded from the deal is $300m of short term debt and 189 gas stations.8 5.9% 21048 1334 273. convenience 415.becomes market leader in fast growing Alberta (locations -> 234.27/11/2013 1 2013 2012 2011 2010 Stores 2 3 4 fy 1 flat mod mod flat 1.7b in the year ending March 23.5 0.9% 1046 48918 30315 1239 4.2% 641 30655 11396. cdcp $9.Petroleum and natural gas properties sold for $17.7 210.1%. another 20/179 screens went to Landmark Cinemas (Western Canada).7 0. US/Can real estate partnerships $209. and 62 gas stations.$579. Shoppers Drug Mart 1h2013 results: same store +2. else +3.8m (+51.79% 259. Second chart excludes 24 Fast Fuel. extra 196). 2012 full year same-store sales growth 2.$520. 2011: 584).8m 2010. October 22 update .php . more on the Safeway acquisition and my reaction June 27 Empire Co sells theatre business in two transactions for $255m. franchised locations Nov 2013: Loblaw Cos 488 (+11.7% 547 72 13.97% 28. The deal is significant for Sobeys . Deal boosts Loblaw profit margins but not grocery market share (only 10% of Shoppers mod mod flat revenue is from food).5 2.Loblaws clothing line Joe Fresh now sold at 700 JC Penny locations throughout the United States. This deal was obviously made to finance the Safeway deal.3 26.3% 769 0.8 (0.9% 42.04% 564 33925 11342. the other 10 are Sobeys (7).6 635 30930 11674.Competition Bureau forces Sobeys to sell 23 supermarkets as a condition of the deal.9 1058 48960 30960 1101 3.5 2. and supermarkets in British Columbia beyond just Thrifty Foods (3 Sobeys -> 78 Sobeys + Safeway).3 200. 12 manufacturing plants. Loblaws and Sobeys provided direct info. 49 of the locations (plants + gas stations + liquor + grocery) are in Saskatchewan (16) and Manitoba (33). Food Basics.4 19. and Metro is at 15% ($12b).6)% 49298 1027 521 108 20.6% 304.4 587 5. 2012: 580.5 475.96% 339. 2011 editions. Cineplex Odeon is paying $200m for 24 theatres in Atlantic Canada (170 screens) while Landmark Cinemas is taking the other 20 theatres in the rest of Canada for $55m.4% 489. Richelieu 76).$508.87% 721. The deal will be paid for in cash with funds coming from Empire equity issue and asset sales.2% 391.6% 650 (0.3 1. median income +21% vs national).5m (40.

7m. However. investment in associates +$94.7%. when the deal closed on 1 Q201 4 (ended August 3) : 13 weeks .2 3% 3371. +1. 2013: 194 of Metro Inc 564 stores (34%) operate in the discount food sector compared to 257 for Empire-Sobeys (20%.8%.500 locations but that number nearly doubles when Target and other stores it serves as primary distributor are included).061.0c in 2013 (45c 1H.4%. At present Sobeys has an excess of credits in Quebec due to improvements at IGA locations where it sucessfully replaced harmful refrigeration gasses.2%. inc. +1.2%.6% ($107. On September 23. ebitda (-14. +1. 4th. +1.2m +30.4% decline the quarter prior to that (2q11). private-label products (took time for Loblaws but paid off since 2008 when gross profit jumped).4m) though when adjusted to exclude one time items.6m -> $65. Sobeys.41% of revenue (+2.6c 1H. Sobeys should be pushing for more organic growth).0 (33)% 30.7)% 650. IGA.0 18% 6.5% (Dec'13). has yet to introduce FreshCo to the maritimes home to 55% of corporate stores but only 5% of those franchised. 60c in 2007. Looking at it from a calendar-year perspective. 2011: Sobeys announces the purchase of 250 Shell gas stations in Atlantic Canada (50) & Quebec (200). FreshCo/Foodland) and ~30% for Loblaws. 66c in 2008. 70c in 2009.2%. income tax rate down: 27. the good .9m. Sobeys 2011 same-store sales growth by quarter +1. $10.5%) May-May 2013 Crombie +$122m +23. 24 fast fuel.672.7m) .ca/loblaws-sobeys.27/11/2013 loblaws sobeys competition (supermarkets) partnerships $209.7%.0 23% 8.5 (1.2%.3 31% 870.6% thanks to timing of tax benefits. 2nd.1%. Organic growth in BC began a few years ago (3 Sobeys standalone stores + 2 IGA) but hasn't taken off.460. Sobeys offered new customers triple A beef. Same-store sales growth weak in 2Q2012 if extra shopping week is excluded. Metro +1. 80c in 2011 and 92. Loblaws posted a -0. 1st. -0. Empire Company Limited info is followed by data on Loblaws Sobeys same store sales growth of +0.8% (Mar'13) vs Sobeys +1. A similar agreement made in the US between Target and SuperValu Inc significantly boosted SuperValu's revenue and market access (operates over 2..5c 2H).1m pre tax in transaction costs associated with the acquisition to Safeway factored into operating income. To celebrate. allowing the bank to be a neutral emitter..8% in the previous three quarters (3rd 2nd 1st) and +0.0 262% 10. November 2013 Loblaw Cos Empire Co Metro Inc Costco Couche-Tard assets change LT Debt change 20.283. In 1q2014 Crombie interest gave Sobeys $6. only 12% of the maritime grocer market is in discount foods. Loblaw Cos 1. For the investor out there consider this: Annual Sobeys dividends have grown consistently year in and year out.6% -> $89.9 18% 1339 locations (2012) but still room to grow .981.7% in 4q of previous year.0 12% 4998. 3rd. funded debt to capital ratio now only www. 50c 2H).Sobeys added only 2 stores in Alberta in 2011 (fastest growing province .php March 15th the number of stations was lowered to 236 47 of which are 3/11 . in my opinion it needs to build up its more expensive organic.3%. -0.871. By comparison samestore sales growth at Loblaw Cos each of the last four quarters (most recent first) is +1. 125-135 Target locations are slated to open begining in 2013.. Private label products will do well anyway given that. Sobeys + Safeway = 1538 stores + 322 gas stations (236 shell.7% in its 1q. still though. +20% vs 1q2013.3% vs +1.609.2%.8m (+51.3% in its 3q was lower than Sobeys 1. FreschCo. Funded debt: Sobeys -11. 2011 announced that it had reached a deal with the National Bank of Canada involving the sale of 15. (Sobeys led the industry in same store sales for seven consecutive years). eps from discontinued operations dragged down bottom line (-26c per share vs -1c previous period).1c in 2012 (45.6% in the final quarter of 2013 is down from +1.9%. 2011 Target Canada announced that it had reached an agreement with Sobeys in which Sobeys will become the primary supplier of grocery items.7m oper. Since the news broke about a month ago Sobey's stock is up 6. FreshCo was launched on May 12.7m). +2.4%.Empire Co earnings down -39. Fiscal 2013 Sobeys +1. 74c in 2010.000 tonnes worth of CO2 greenhouse gas emission gas credits (annually) to the bank.3m but investments +8. Perhaps Sobeys is concerned about the drop in food prices that would cause.Sobeys free cash flo w to $49.northamericaninterests. 2010 in Toronto.2% -> $4.0%. etc.2%. 62 safeway gas) .4-> 24. +0.8% (A ug'12). -0.. It started out by taking the former locations of Price Choppers stores (87 in Ontario). December 15.update Empire takeover of Safeway vaults it to the top in Alberta.8% -> $260. Sobeys IGA locations more Environmentally Friendly = Excess Carbon Credits On November 15. per share they were at 40c in 2004. earnings not as bad (-12. The deal is big for Sobeys because for the first time it will be able to sell its own private label items outside of franchised/corporate locations Sobeys.3 (4)% 5.0m) to only 1. 46. 1st). All three seemed to have their strongest quarters in terms of samestore sales in 1q2013: Loblaw +2. 95. +0.7% (2nd.

excluding new gas revenue Sobeys increased $445. Genstar also down $4. same-store sales weak at -0. Investments.9m (+$35.7m (+19. adjusted +13. Locations Spread Sobeys accounted for $16.5 -> $17.0% in qtr ended March 16.1% but not surprising (ss-sales also lower at Metro Inc -0.6% -> 21. 4Q201 3 .1-> $107. investments/other -63.0m) or 26c a share (+8.2%).1-> $82.4%).inc from outside retail.1m (+$7.9m (+$9. qtrly same-store sales +0. Great Food and Zehr's take on www.8%).6% not bad considering at Metro it was 0. Sobeys square footage +2.2m (+$233. something that Sobeys hasn't been able to improve (stuck at around 24%. Sobeys .2%). ebitda .32-> $1.php 4/11 .1m of the increase in Sobeys revenue is attributable to the acquisition of 236 shell gas stations late 2012.7m -17.3m.6% $92. per share +13.74 to $5. Investments $57. adjusted operating income $562.6094b (+$100.7% was cited as being main reason it sold Serca food distribution business back in 2001 for $440M). Funded debt to capital ratio 20. Maxi.0m (food $79.7 -> $367. debt to capital ratio 24.the food retailing segment reported sales of $4. Provigo (taken over in 1998.4m).4% $339.$247.3m (+$3. full year ebitda .8%.2%). Interest in Genstar.5% to $127. Sobeys oper inc $79.8% interest in cdcp. the superstore brand represents 1/5th of Loblaw's corporate run locations).45/sh.0m. Cineplex 50% In the discount supermarket sector Sobeys' FreschCo competes directly with Loblaw's No Frills in Ontario (though FreshCo hasn't yet been introduced to key areas such as Halifax).9m or 9.8)m accounting charge. Investments $16.2%).0274b.2%).0m (+$36.7% $4.northamericaninterests.4m or 67.1m +5.2 / invest -$14.5m (+$11. revenue +2. In 2012 Empire Cinemas transfers $7.7m for year).7m.1m.6060m when reclassification of lease revenue is included (+2.4m). Investments $18.4m (up $48. -$13.4% to 29.3m net of tax .9m prev period) or 96c eps basic (vs $1.that widened net loss from discontinued operations to $17. loblaws sobeys competition (supermarkets) was lowered to 236 47 of which are in Atlantic Canada (the rest in Quebec). due to $(4.6m worth of projectors to the Canadian Digital Cinema Partnership (cdcp) in exchange for a -> -$2.99 to $5.259.9m +2.2m (vs $623.3% versus every other quarter in current fiscal period).9m (previous period incl dilution gains of $11. same-store sales up +1. The acquisition increases Empire-Sobey's annual fuel volumes by 1 billion litres. Excluding new revenue from 236 gas stations (+$269. gross margin for the 39 week period down significantly (24.0m +22. Voting shares in cdpc: Empire 50%. in Quebec discount there's also Metro's Food Basics and Super C.055.4%. quarterly net income down -6% $75. remeasurement of assets + transaction costs totalled $18.5% or $9.2m (-17.3m (+$7.other contributed $3.8%).9m vs +$8. adjusted : Sobeys $82. net earnings breakdown : Sobeys $89.8m or 11.8% $322. Shell is supplied with refined oil by Imperial Oil which is controlled by the world's biggest oil company Exxon Mobil (65% ownership). investments (-73%-> $3.58).4m or 12. +9. Positive effects of the Shell deal: 1) Greatly expands cash flow for Empire's non food business segment.2%) or $4.2% ($48.9m or 56.2%. consolidated revenue 4. adjusted: Sobeys $504.27/11/2013 w to $49.3% on the year.6m up from $0.7m ($39.0% last year) 42.6m.6% (25.39.3m).4%).25%). sales from discontinued operations bulk of which is Empire Theatres: +13.7m (up $102m).5%.1m or 3.5% -> $4. net earnings breakdown : Sobeys $339.7m with $1.21 per share : Safeway transaction costs -$7.5%.9% to $6.8m on gain from disposal of assets (-$22. Crombie now at 42. Investments $44.5m in realignment costs (+$6.612.1m (vs $6215.5m of the difference (divestment of Empire Theaters partly responsible).4m).402.6%.35-> $1.9m on the year).4m to sales (+$1. food retailing profit: $79.4% $16.1m or 8. net earnings from continuing operations: $108. adjusted +10% 89. twice as many as Superstore).8%) of which Sobeys contributed $4. funded debt to capital ratio now only 19.0m trans costs related to Safeway.03%) on account of lower margin fuel sales (excl that.2848 billion.7m or 13.7m +8. the strong food sales is attributable to price inflation and larger new stores though competition played a negative role (consumers less likely to buy pricier items).65.9%).0m).58 .9% vs 21.9m: Sobeys -18.6m or 27. The acquisition cost Sobeys $215 million.3m (+$5. Quarterly revenue at Sobeys up by $348m -> $4.6-> $3.6-> $55. Dividend steady at 24c.1m).9% ($1. all but $97. presently Provigo is the largest Loblaw brand by locations.7%). Accounting for difference between profit and adj profit : +4.income $155.0m). another factor to consider when looking at fall in bottom line is oper.1m +67. other $2526.59->$1.08% -> 23. Canadian or Atlantic depending on the region. Net Earnings up +13.3m (+$39. quarterly revenue $4308. total assets by segment AugAug: food retailing $6455.6m of the difference coming from new gas stations (Shell gas stations are considered part of food retailing division Sobeys).95).5949m (+2.9%).1m (up $18. adjusted operating income breakdown : Sobeys $515. empire total revenue 17.7m in qtr) Sobeys revenue increased $94.9m (+235. Investments $69. 2) The gas stations will give Sobey's convenience store business more leverage.7 million sq feet.$944. Investments $36.5m/$25.4m.3%).5m prev period.2m.4%). Net Earnings up +16.0-> $133.4% .8%).7%).3m +5.4m or per share +17.5m or 9. consol earnings per share -39.Fiscal 201 3 (ended May 4) quarterly : Empire Company paid out $16.6m or $1.0% $1.8% interest in Crombie reit worth $622. 40. gross margin steady at 24.2m or 29.2m vs +$11.0m or 18.8m.3m (+$8. Superstore (Real 3Q201 3 (ended February 3) Sobeys adj earnings +8% to $71. consolidated net earnings : $65.7m.4 -> $384.9%).58->$0. adjusted: Sobeys $331. Excluding that.8m +2.2% $4.7% respectively. operating income $175. Sobeys same-store sales up +1.3m in dividends (+$1.5m or 8. +$1. a low ebitda margin of 2.7%).2m (vs $95.6->$98.8% $1.9m last yr.9m). 3) Gas stations enjoy high gross profit margins. adj oper.8% fiscal year Sobeys sales +8.

7% of Empire Company revenue (+9.4%) on revenues of $61.2491b). Operating income is $175. 2011 fiscal years 1 Q201 3 (ended August 4.5% down from 25.2m) or $1.7m +16.4%) representing 88.3% to $182m (most of the increase from gas stations).3m 9.51b) and Empire Company (+9. Sobeys sales up +1.5%. Sales at Sobeys (+9.1m (+17.08% to $108.849.8m/$876.8m in half) is attributable to 236 Shell gas stations acquired late last year (gas.2m profit. reflecting the first full year the Oshawa Group was part of it. In Ontario and Quebec there's also Metro's Food Basics and Super C.3%). Freshco) and 34% for Metro (end of 2011: 79 Super C. Total company revenue hit $4.5% of ebitda ($801.0%). In 1999 (2000 fiscal year) Empire-Sobeys sales surpassed $10 billion for the first time. Total company earnings up +20.2m.3%).1% to $4. Operating income is $175.15 (adjusted earnings up +14.5m).0m (+41. Bill started out bagging groceries and ended up president ! Graph Below: Empire Company info by business segment 2009.1m).0% since start of fiscal year in May).27/11/2013 loblaws sobeys competition (supermarkets) buy pricier items).26% to 16. Sales at Sobeys food business was $4. Sales at sobeys $8. quarterly net income down -6% $75. Sales attributable to investments/other was up +7.8%).5%).8m -> $140. $13. 2013 at the half: Same-store sales up +1.7%). Sobeys was the source of 90.1m (out of Empire's $339.0m of which is from Sobeys (+15. Empire's investment's added $20.7% to $4.961.1026b last year due to an extra week last year (14 vs 13 this year). 201 3) Sobeys same-store sales increased +1.0446b (out of Empire's total revenue of $16. 2012) Sobeys same-store sales increased +0.52 a share). He is an inspiration to anyone wanting to move their way up in any company.8)m accounting charge.4041b).0m of which came from Sobeys (+24.2m in earnings on revenues of $112. Net income for the entire company is up +19.32 (adjusted earnings up +21.6m.5% of Wajax Income Fund).9% interest in crombie reit worth $580 million (+10.46% to $93. For the year.31 up from $49.5% down from 25. Operating income $316.95m change in Sobeys revenue ($515.4m down -$61.56b) broke into record territory.5%. more 2Q201 3 (ended Nov ember 2.4m of the $75. 42.8% with gross margin steady at 23.94% from $4. crombie+other investments contributed $6.6m) down from 91.4%).26 a share).8%) or $1.8m (+$771.1m (+4. IGA and Foodland head to head in regular priced food retailing in central and eastern Canada.3m in earnings (-1.7% qoq. 115 Food Basics.5m increase in total company sales came from the newly acquired 236 Shell gas stations (gas. 2012 Marc Poulin will replace Bill McEwan (health/retirement) as CEO of Sobeys.php Post to Facebook 6 6 6 6 6 6 6 6 6 Post to Twitter 15 15 5/11 .37 per share from $1. $48. non-fuel gross margin increased slightly.2m (+18.8m to $304.0232b down -1.60%).3m) $284.2m or 9.17/share (+5. Just over $250m of the $403.9m) and lower finance costs ($15.9838b) represents 98.1 to $4.3% (+1. funded debt/capital 25.6% of the change in operating income ($127. 4Q2012 (ended May 5.5m +10.0m -> $12. On June 29.2% adjusted to $2. Metro total 564).2m but $76m of that is due to an artificial gain from the sale of 27.96% in fiscal 2011 archived images below Like 1 6 Tw eet 15 www. convenience business is part of Sobeys). Bill was instramental in getting Sobeys the deals it has with Target and Shell. Sales at Sobeys first reached $1 billion in 1987.4% to $1. Empire Co profit increased due to higher operating income ($125. Ebitda from Sobeys up +5. due to $(4. 201 3) Sobeys same-store sales increased +1. Funded debt to capital ratio is 21.3%). Net income for the entire company is up +22.0% due to repayment of $200m non revolving credit facility.8m (+11.7m (from $193.8%).ca/loblaws-sobeys.3m from asset sales.60%). that compares to less than 20% (257/1271) for Sobeys (Thrifty Foods.4% of Empire's total profit ($89.17 per share ($79. Just over $257m of the $355.5% up from 5.3m (+15. Graph below was made in November so it doesn't include Nov quarter which was released in December Great Food and Zehr's take on Sobeys. Quarterly profit from Sobeys food business was $79. $85.5% for the half). food retailing earnings up +21. Revenue at both Sobeys ($4. 3q12 included +$9. Ebitda margin 4Q is 5.6m).4m (+5.9m or $1.1%).78/sh) on revenue of $8. profit was up by $6. About 30% (<400) of all Loblaw locations are discount 'no-frills' grocery stores (removal of non-essential items to keep prices low) nofrills/valuemart/freshmart/wholesale club.6% to $1.1m (+17. 2010.06%.2% to $50.34b during the qtr (+9.3038b in the 39 week period (+9.1m / $750. convenience business is part of Sobeys).98 (May 2012). Funded debt to capital ratio is 21. Sobeys accounted for 91.60 per share from $1.0%.3454b from $3.86% to $202.15%. Book value per common share is now $52. Earnings adjusted $1.02 (Nov 2011).4m (+$765.northamericaninterests.27% to $203. Investments added $8.

ca/loblaws-sobeys.5% of ebitda ($801. *note: graph to the right will be updated everytime Loblaws releases its data.3% to $68. $0.9%. Sobey's operating income was $475. Food retailing net income (net of minority interest) down -11. preferred series 2 shares have not ($1.5c/share totalled $15. 2011 (down from $1. 4th).96% in fiscal 2011 ($793.7%) still misses analyst estimate of 81c (stock down 8% on the day).8 million in the third quarter last year ($76. Sales attributable to investments/other was down -2.3m (-22.7M.5% $213.3% vs 2Q2011 (+$271M).7%. Only 98c/share of Empire's EPS in 2Q11 came from business outside of Wajax so the profit drop isn't too concerning. national CPI significantly lower at 0.. The difference is due to gains from the sale of Wajax in 2011 which contributed an additional $76. adj earnings www. etc).9% qoq.98% to $110.6% to 55c) on consol revenues of $10. Adjusted operating margin 3.9%.8% in the quarter even though Sobeys gained $11. Consolidated Empire profit for the nine months for all business units is $247. +4. Sobeys. Investments/other 9M2012 .6m but most of that drop is from items not considered part of usual business operations (underlying operating income down only -2. For the nine month period Empire's Food Retailing sales (+3.2%. Adjusted eps better at 78c (-3. Loblaw Companies profited $154m (-29. Ebitda from Sobeys declined by -17.2m). higher depr/ammort offset by labor efficiencies. long term debt is down a healthy 21.536. Dividends paid out at a rate of 22.5% ($9627->$9772m) gross profit remained at $2.8m (out of Empire's $534.0m).03% last year).6m/$863.6m) down from 91.8%.0%).6% of Crombie REIT down from. For the 1st half of fiscal 2012 operating income was up 4. 3Q2012 (ended Feb 4.4m ($1. 46. Sobeys went +1.6M).7% in the last three quarters (2nd.7m).2M but debt due within the next year skyrocketed up to $238.1% (vs -0.4M in May 2011. 2Q2012 (ended Nov 5.40% to $444. modest in food.5m in pre tax expense reduction associated with post retirement benefits. Loblaws 3q2013 (ended October 5.3m) which is steady with last year's $473.4% in 1hlf 2011. operating income declined by $31m ($29m adj) due to lower fx gains.52 in 2011). Gross profit margin for retail business down from 2q2013 (21.8m of which comes from the grocery business (up from $974. declines in pharmacy. In the last quarter Empire Company handed out a 24 cent dividend up from 22. In the 1st half of 2012 food retailing accounted for 89.9% to $47. Total assets are now at $6.8M up a full 1. Empire-Sobey's now owns 44. per share -28.01 per share). Full results for Sobeys at 2Q2012 pdf report. profit adjusted +7.5 cents.0%.northamericaninterests.7%.0% vs May (+$61. 2011): Sobeys same-store sales increased 1.7% to $222.9% to $101.15/share remember though that $76.5 cents in 4Q2011 (Sobey's quarterly dividend increases are relatively new.1M in 2Q11. Versus May 2011. was +1.009m (+1. $0. However net income for the entire company was down 9. year out. $0. $57.php 6/11 .8%).8m/$876. +1. strong sales growth in gas bar and apparel. Sobey's operating income -12.5M while depreciation was +$5M for the half/ +2M for the quarter. including minority interest investments/other profited only $24.8% to $3. net income was down 45.4% of total net earnings compared to 60. Internal food price inflation flat . +0.78 in 2009. general merchandise.2 c dividend.7% to $88.2m) came from Adonis and Phoenicia).0%. though ebitda was lower (-0.27/11/2013 loblaws sobeys competition (supermarkets) accounted for 91.1% from 23.1M or $1.1M of the lost earnings are directly related to the sale of Sobey's interest in Wajax Income Fund.7% (vs 4.95% to $72. net income (net of minority interest) up +6.0% in the first three quarters of its fiscal year (which ends in September).2M from $49.1% of Metro's revenue change over the 10-months ended June 2012 ($173.4m (out of Empire's $525. Keep in mind though that last year's 3qtr earnings included $28.1m).5% on January 29.7m) were up.6m. IGA. Empire-Sobeys long term debt: $1.17 per share (-10.2% (vs 6.7 million.3% to $598.9m.0% the year before. Despite retail sales up +1. Adjusted net earnings were down only -5.4m from the disposal of assets.3%).0984 billion as of Nov 5. Funded debt to capital ratio was lowered to 25. +1. Metro Inc released its 4q2013 results the same day (same store sales down -1.9%.2% to $12.104m meaning cost of goods rose faster than revenue.5%).3%) but remember that 107.98b.2m in the 2nd quarter of 2011.3m / $320.5% interest in Wajax).9%.4 million compared to $$96. Positive signs: 3rd quarter gross profit margin (profit/sales) increased to 24. 3rd.9m or $1. That pushes Empire's dividend past Metro's 21.5% vs last year ($13.2 of the decline is because last year's nine month period includes the sale of the 27.6M or 20c/share). Same-store sales growth for 2012: Metro Inc is now threatening to pull ahead of Sobeys for the year after going +1.3%).2%) : retail same store sales at +0.3M +12. was stuck at 20c for most quarters prior to Jan 2011). 2011 . Boosting Metro's performance is its 55% interest in Adonis and Phoenicia middle eastern food markets (54. ebitda 6.2% qoq. 2012): Sobeys same-store sales increased 1.3% to $78. I wrote about Metro's latest quarter 3Q2012 here.5% vs 22.37% to $274. 2013) 16 week quarter: consolidated same-store sales growth at +0. Interest in Genstar Development Partnership now at 40.2% from 28.1% to $860. +1.9% (vs 1.9m.7%).13 in fiscal 2008. Empire's revenue for the quarter was up 2. $3.0213 billion) and profit (+0.44 in 2010.94b of which came from the food retailing division (+2. loblaw cos puts the blame squarely on increased competition from Walmart and new comer Target. However all was not rosy in the 2nd qtr. ebitda up 4. Dividend per share = 22. Although common shares have been higher year in.4% (vs -0.6% of the drop is because the last period includes a gain from the divestment of Wajax.168b Oct 2010) $997.6% to $17.5m).

Loblaws retail segment: revenue $9772m (+1.731m (+2.3%] adj ebitda $1631 nearly doubled ($15-> $28m). ebitda up a whopping 350% ($4 -> $18m).722m (+2.8%. financial services: revenue +16.0% (from 3. 2012) For the 2012 fiscal period.604 billion. In the other three quarters (q3 q2 q1) profit was down -5.8% vs $2055m) ii) higher sales from mobile shop.3%). -4.3% up from 3. earnings 278 -> $349m (+25. operating income +6. 2013) 12 week quarter : same-store sales growth at 1. Foreign exchange rate positively impacted margins.6%) all declined. operating margin (4.9%.0%).5% -> $148m. 2013 half: same-store sales 1. operating income +31. expansion of apparel department). margin 4. Same-store sales growth: -0.1% vs 19m).312 -> $14.6% to $500m. operating income +14.27/11/2013 loblaws sobeys competition (supermarkets) Metro Inc released its 4q2013 results the same day (same store sales down -1. gross profit +2. the lowest level in more than two years). oper. 2013) For the 12 weeks ended March 24.3% vs $373m) Ebitda margin 6.php 7/11 . Galen Weston Sr owns 60% of George Weston). Loblaws anticipates that the initial public offering of its real estate investment company will take place in July 2013.June 2013) -.31 (-15.serv $535m +14.5%). gross profit $2104m (same).202 billion (+3.6m due to $21m gain from final disposal of 11% stake in Couche Tard/1 less week this period. ebitda margin 6. retail segment: sales up +1. that despite both quarters being 12 weeks long.037b +3.3% last year).3%) Loblaw Companies still didn't improve its bottom line (total net earnings down -15.retail space net change +0.4%). Gross profit margin unchanged at 22.9%).8% -> $313m. ebit $8m -> $37m. 529 -> $631m ( equivalents +3. oper.07% > $2.9% the year before) which is disappointing considering Sobeys (+1. 9-months 26.1% (vs 0. Internal food prices inflation flat which is lower than what was reported by the consumer price index (1. -19. total revenue 14.0% $1611-> $ fin. In the last 12 months (June .047 billion : not bad considering expenses the company faced in new product launches. modest in food. The ipo was worth $660 million which included $460 million from individual investors and $200m from George Weston Limited (owns 46% of Loblaw Cos. store renovations. Loblaw Companies profited $178m (+14.8%) 86. the market value of assets affected by the ipo exceeds $7 billion.5% last year). Operating income improved markedly due to 1) renegotiated pc telecom vendor contracts 2) higher mobiles sales and more banking services revenue (credit card transactions increased both in number and value).5%) [retail $24. ebit +108.3% -> $535m. The financial services segment showed a 375% increase in earnings before taxes. with net sales of retail items up a marginal +0.7%). impressive considering the national food consumer price index was up only 1. oper inc $342m (-8. gross profit margin fell slightly (22.6% -> 4.1%.5% vs $9627m). A collapse of a factory in Bangladesh which housed Joe Fresh Style textile workers hit the company's brand reputation but the company remains optimistic about the situation: Loblaws has compensated families affected by the tragedy and is working to improve working conditions there.5% down from 2. was +1. Loblaws Fiscal 2012 (ended December 29.9%).409m.2%). Higher effective tax rate this year ! 26%-27% full year 2013 up from 24.960b). financial services: revenue +6.6% $14. adj earnings stable at $113.8%).0m but unajusted down 42. revenue higher due to i) higher credit card receivables (averaged $2297m +11. gross profit +2. ecommerce.181m +2.3% last year. capex $1b same as 2012. any increase in tax rate during this period is due to decrease in income tax recoveries.4%).3%) but operating margin was up a healthy 4 basis points (3. revenue at Canada's leading grocer is up +1. oper. Loblaws 2q2013 (ended June 16.13% to $31. credit card receivables +10. A $7 billion reit handling 415 properties was launched on July 5 and given the name 'Choice Properties' .9% vs 2010).8% (vs 6.4m sq ft. respectively. operating income (-16.2% / fin. 9 month revenue +14.northamericaninterests. The company failed to translate the additional revenue into profit: Gross profit (-$1m).3% buoyed by lower transportation costs and less theft.2%).4% vs 2011. negative in general merchandise.3% -> 3.0%.3%.9% vs -0.0% vs $200m). ebit affected by renegotiated vendor contracts (lower costs) and marketing investments (increased costs). closed 13 stores -. oper inc $41m (+28. Loblaws 1q2013 (ended March 24.5% to $650m .5%).serv 464m +137%].4% or $229m of the $265m revenue growth came from retail sales ($7.5% (up from 12.8% ($30. oper.044-> $14.9% to $294m.4%) and Metro (+1.7% (vs 27.5% $3140-> 3219m. depreciation and amortization negatively affected operating margins (4.1% to $1101m).5% to 63c) on consol revenues of $7520m (+2. EPS (basic) down to $2.4% to $83. -22. Bright Spots .1% vs $32m).6% (vs 25.2% (vs 6.8%). Loblaw Companies profited $171m on revenues of $7. according to Loblaws. Though the financial services segment (boosted by the launch of new mobile shop kiosks / higher credit card transaction values) exceeded expectations (revenue +17. samestore sales +2. 9-months: revenue $24. quarterly effective tax rate now 26.2%.7% -> $2279m with the average yield at 13. The difference is that. sales growth strong in gas bar and apparel.Loblaw opened 23 stores.82%. flat in pharmacy.8% [ebit retail $1517m +1. in 2011 there were other actuarial losses that amounted to $208m which is 10 The bad .9%.4% this quarter.12% to $629 million..2% (vs doubled to $58m. Total comprehensive income for the year is actually up +12.2%) showed strong growth (investors should be asking this: why is www. retail segment: sales +2.Fourth quarter profit was down -17.1%.9% $7236-> $7372m.8%. per share +14. financial services: revenue $222m (+11. ebit $27m (+42.4% -> 22.703b -> $30.

same store sales growth +0. same store sales contracted -0. 36% of the increase in quarterly revenue came from the financial services segment (higher PC and Mobile Telecom sales. joe fresh style.X this year's amount.03% higher ($9.4%) and Metro (+1. 98.0%) are considered.6% to $2.3% in 2011). there are a couple reasons for the relatively poor results: 1.2% (vs 1.4% growth last year).7%.671b.6 million square feet of sales space = +1.2% (vs 0.1% to $5.7% (was 4.5% --> $469m / -9. Net Earnings fell -6.83% to $23. Food retailing market share in Canada among grocers: According to the Atlantic Farm Focus the s upermark et indus try in Canada is distributed among the Big 3 as follows: Loblaw Companies 43%.9% from the previous quarter and is actually at its lowest level since 1q11 (when revenue was $6. Over the last 52 weeks loblaw companies added 0. Those factors compensated for flat sales in both food and drug products.827b. marginally higher food sales (though Loblaws did attribute part of that to food price inflation which according to the CPI index was 2. $10m in customer appreciation costs / loyalty programs 4. Costco ?). For the 3Q 16 week period: Food/Apparel: Gross Profit increased by +1.2% over the previous year despite sales increasing by +0. www. drugstore items. 2012) profited only C$159m in the second quarter of 2012. gross profit fell -1. same store sales contracted by -0.4m ft2 to sales space --> 50.northamericaninterests.627b of which is from food/clothing (+0.9% to $6. Also of note: This is the second year with Vicente Trius at the helm (hired Feb to $17.3% down from 4.6% to $1.0% in 1Q2011) 3. -19.3% --> $159m / -20.5% last quarter (down from 4.2%) and gross profit margin (22. June 2012: Loblaw Companies store number is now at 1046 (585 corporate / 462 franchise) up from 1032 (578 corporate / 454 franchise) June 2011. Good News regarding 1q12: Loblaws opened 25 new stores but closed only 5 resulting in a net addition of 0. that despite overall revenue being +1.5% vs 23. that despite quarterly revenue being +1. Ebitda (-7.8% of total revenue). 2011). $9.1% of revenue orginated in retail where same-store sales fell -0.529b and operating income was 21.872b).6% --> $285m for the half) were also down significantly. Dividends per share steady at 21 cents (41c for the half) even though Earnings Per Share were down -18.php 8/11 . credit card business also grew).3% lower vs 2q11.2%. 40 week nine month period: Retail Segment : Sales up +0. -5. Dividend per share now 22c up 1c qoq.937b.2m. Metro. qoq asset value up by 2.7).2%. Metro Inc 16% (supermarkets only account for about 2/3's of the food market). According to the USDA/Statistics Canada.244b. apparel and general merchandise. Operating Margin now @3.9% lower vs 3q11. flat sales of apparel.6% of the increase in revenue ($18m/$79m) actually came from the financial services segment (nice considering financial services only accounts for 1. 2012) Loblaws profited C$222m in the third quarter of 2012.8% to $222m. Higher labour costs 2.354b. Keep in mind however that 1q12 revenue is down -5. a decrease of 22.1% lower at $225m. 1Q2012: Loblaws profited $126 million in the quarter ended March 24. There's been lots of negative pressure on Loblaws revenue stemming from flat food sales and lower sales in drugstore.375b which is actually the highest quarterly revenue in the last 4 quarters). Financial Segment accounted for 26% of the change in revenue over the nine months ($26m/$262m).27/11/2013 loblaws sobeys competition (supermarkets) Sobeys (+1. Results were particularly disappointing when operating margin (3.3% growth last year). Also consider that 0. Sobeys 21%. 18.33% higher ($7.8% of the revenue is attributable to one less day of store operations. (Atlantic Far m Focus: Sobeys to supply Tar get) Not all sources quote the same market share. more on Loblaws here Loblaws 2Q2012 (ended June 18.2% --> $878m for the half) and Net Earnings (-19.2%) showed strong growth (investors should be asking this: why is competition affecting Loblaws more than Sobeys. According to Loblaw Companies in its quarterly report. Gross Profit down -0. Loblaws 3Q2012 (ended October 6.6% (70c --> 57c / 128c --> 101c for the half). 2012 (1q12).104b. Sales in clothing and other apparel was strong as was growth in revenue from gas stations (higher pump prices).

0% of Canada's total retail market size of $451b +6.7B.2% of Loblaw Cos sales) barely saw any gain on the year (0.703 b of sales came from retail (food+clothes.6%) or 2009 (-1.2% from 22.919b-->16. 2012 Empire-Sobeys owned 53 separate cinamas across Canada (up from 51) consisting of 438 screens (up from 386 a year earlier). The result? total assets 2009: 14. Though annual revenue (+2.25%) vs $547m from financial serv ( --> indepth coverage of the grocery industry.5% decrease back in March.7% to $31.25 b).9%) were up across the board a closer look reveals plant and equipment. profit (+13.5% down from 67%. 98.991b-->16. that was only the second quarter to quarter increase in revenue since a 3.9% to $769m).49%) despite revenue rising to a record high (total company revenue surpassed $31b for the first time ever). In December 2011 Loblaws had 584 corporate stores (+8 vs 2010.8b for Zellers leases. -29 vs 2009) and 462 franchise stores (+11 vs 2010. Add to that the fact that basic earnings per share were up 5. ebitda (+5.8% rise back in 2008 by pushing the stock down 5.090b. Loblaws Quarter ended Dec 2011 just released and the results for the last fiscal year are in. 2011.6% sales increase in the 4q is attributable to an extra shopping day. 2010: 15.php 9/11 . --> new website launched at grocerynews.37b)..3% qoq increase in the 3q (eps averaged over each week comes in at 5. the value of its assets going back two years.25c in the 3q).9%) something that didn't happen in 2010 (-0. gross profit percentage actually fell 22. Empire-Sobeys 18%.27/11/2013 loblaws sobeys competition (supermarkets) as of 2011 (report released March 9.northamericaninterests. Metro Inc 13%). Data from Loblaws 2011 annual pdf report Loblaws remains optimistic that it will weather new competition from Target when it begins shop in Canada in 2013 (same year Loblaws will move into e-commerce beginning with Joe Fresh Style). but that www. 2011: 17.75%) however financial services contributed 5. The 62c eps in the latest quarter missed analysts expectations of 66c. Some of the positives to consider: same store sales grew in 2011 (+0.24b in the fourth ($7.5% to $2.3% to $2.7% in the 4q was due entirely to increased credit card use (Canadian household debt is among the highest in the world and there already are signs from Dec 2011 that Canadians are cutting back).1%). regarding Loblaws that on March 3. 2012) Canada's food market is $88. It the second largest movie exhibitor in the country ! Between May 2010 and May 2011 no net additional theater locations were reported by the company.083 b). Overhaul of the IT & supply chain will cost it about $70m more in 2012 as it attempts to become more customer oriented.4% and the 3.428b. In 2011 $30. an increase of 19.0% vs 2008) and only 43% of that is represented by one of the 3 largest grocers (Loblaws 31%.0% to $9.73) and same-store sales growth (+0. That compares to under 300 Sobeys branded locations (629 total corporate) and 370 Metro branded stores. Maybe that's why investors responded to Loblaw's highest year-to-year revenue increase since a 4. Details on the change available here.8% over the previous year despite sales increasing by only 2. But it did beat revenue projections of $7.17c in the 4q vs 5. Also disconcerting is the fact that gross profit from the food retailing business (98. Target paid Hudson's Bay $1.0 billion in size (19.2% of operating income ($72m) and 24% of the increase in 4q earnings (+$9m to $174m). eps (+12. An abberation? Financial services revenue growth of 24.841b. m ore on Loblaws. +46 vs 2009). In 3Q 2011 Loblaws profited $236M in the quarter ended October 2011.1% in the 4q compared to 18. All supermarkets combined represent 63. Empire Theatres As of February 3.7% the day of the release. 2013 there are 52 locations with 434 screens which is down versus the previous quarter. November 3. Remember also. was adjusted upwards in accordance to ratings agency IFRS standards which now takes into account previously unaccounted for capital assets such as property.

2008). Only about 12% of the grocery market in the maritimes is in the discount market. Sobeys also has a significant stake in Canadian real estate Crombie REIT: interest was 42. Sobeys did this in a bid to win over customers through customer appreciation efforts however brand diversification appears to have benefited Sobeys in the long run by allowing it to tap into different markets more effectively (Loblaws gained a bigger market share after it acquired T&T and launched No Frills in 1978 and now Sobeys is doing the same with FreshCo). 42. SuperValue.northamericaninterests. After acquiring Price Choppers in the 1990's it left the brand largely intact for more than a decade before rebranding it as FreshCo. Wholesale Club. 44. With Canadian real estate prices climbing (average home price up 6.9% in Feb 2013.27/11/2013 loblaws sobeys competition (supermarkets) Between May 2010 and May 2011 no net additional theater locations were reported by the company. Brand Diversification and the Ethnic Market Sobeys has also been more open to diversification of its brands. Owns 40. After Metro acquired A&P it spent $200M to completely convert Loeb/A&P locations into Metro stores. Half of the over 200 IGA stores are IGA Extra located in suburban areas. In the discount market Loblaw's No Frills leads all other grocers. Discount Food (Nov/Dec 2011): M etro Inc: Food Basics. acquiring the 27. It was on the eve of Sobeys' 100th anniversary (celebrating JW's birthday. SaveEasy. just the 152 No Frills stores in Ontario made $3. however Sobeys chose a different route.5% Jan 2011. 46. Initially. Sobeys parent Empire Company Limited has actually been controlled by the Sobeys clan since 1947 when Frank Sobey bought it for its land and ability to be transformed into an investment company (1947 was also the year Sobeys opened its first supermarket store in Pictou).6% in Feb 2012. Quebec Sobeys has a significant presence in Quebec but not in the traditional sense. The only full service brand that it operates there that competes with Metro's 370 stores is IGA.0% in Nov 2012.8% in May 2013.06B or $58/share (April 26. a consumer base that already represents over 35% of shoppers in Ontario and will represent 31% of all Canadians by 2031.5% in September/# of properties sold up 2.7% in August 2013. 45. but that changed in 2012 when 2 were added. that's in stark contrast to Ontario (45%) and Quebec (33%).4B in sales last year more than Sobey's FreshCo and Metro's Food Basics combined. That represents a $2-4 premium over the fair market value (Sobeys shares were delisted from the TSX on May 2. (June 2010: Grocery Trade Review) Sobeys has experienced tremendous growth over the last decade even before its recent successes. Value M art.9% late 2011. originally a marketer of meats) that Sobeys purchased Empire Company outright. More than half of the locations are smaller supermarkets Marche Benichoix. Les Marche Tradition (118 combined).7% qoq) those investments are www.5B deal in 1998 tripled its size and made it into a national company) was left intact.8% in sales from other operations to lower box office attendance due to movies having less consumer appeal.7% of Genstar Development Partnership.php 10/11 . 2007). between 2001 and 2006 Sobeys stock price rose by over 68%. In the fourth quarter of fiscal 2011 sobeys attributed the drop of 13. for $1. Super C (194 stores combined) Sobeys: FreshCo (64) and Foodland (196) and Cash and Carry (9) Loblaws: No Frills (175). the other acquisition IGA/Oshawa Group ($1. 42. FreshCo has proven popular among ethnic customers.9% of shares it didn't already own.

7% down to 29. About 85% of Empire's assets are associated with the food retailing business). The commercial real estate business contributes about 30% of funds from real estate operations even though it only contributes less than 15% of real estate revenue. Joe Fresh Style has stand alone stores in the United States and has plans to open 4 more in Toronto and Quebec in the second half of 2011. Since March 2006 Sobeys sold 105 properties to Crombie REIT raising 897M in 2 transactions.7M a year earlier (decrease was due completely to the divestment of its Wajax investment which was worth 117. Sobeys first reached $1 billion in sales in 1987.06B worth of Sobeys outstanding common shares bringing its interest up to 100%. In 2011 Sobeys divested itself of Wajax stock by selling 27. Cogswell Tower.6M from 350. Revenue at Loblaw Companies fell slightly in the second half of 2011 to $14. T he re a re a b out 2 8 9 sta nd a lone Sob e ys loca tions a cross Ca na d a (2 3 % of the comp a ny' s loca tions). The market value of all of its real estate investment holdings was 451. Since 2 0 0 1 . In 2011 the company expanded 12 stores (down from 13 in 2010/11 in 2009). During fiscal 2010 food retailing/real estate represented 94% of net income. Though already the largest food retailer in Canada with over 13M Canadians shopping there weekly (40-43% market share).76).5 % d own from 3 0 .1M. owner of IGA Canada ($1. fisca l ye a r d ivid e nd s ha ve more tha n q ua d rup le d from 2 0 c to ove r 8 0 c p e r sha re . Quebec).5b increased sales by about 75% or $4b). opened 44 (up from 41 in 2010/47 in 2009) and closed 39 locations (down from 52 in 2010).27/11/2013 loblaws sobeys competition (supermarkets) climbing (average home price up 6. Loblaw Companies is gradually transforming into a hypermarket with a major expansion into the textile/clothing industry underway.2M on May 7. Crombie Reit's properties include both high end assets (Barrington Place -> In 2010 Sobeys lowered its debt to capital ratio from 32. 2011 is also the year Sobeys converted most of its mainline locations into 24 hour supermarkets taking away from Superstore a key competitive advantage.9M in 2010).3 % the p re vious ye a r.northamericaninterests. reflecting the first full year the Oshawa Group was part of it.5% in September/# of properties sold up 2.3M (used the proceeds to pay down debt). 2011 comapred to $487. Although revenue increased 75% that year. Food Retailing: net debt/net total capital ratio was at its lowest level in 2011.7% qoq) those investments are bound to pay off. In March 2002 Sobeys sold Serca Foodservice formerly part of Oshawa Foods to SYSCO for $411M.7% to $86.334 (28. Food retailing makes up 98% of sales and 90% of operating income (2011 & 2010). which e xce e d s units op e ne d b y ma in comp e titor No Frills. CIBC Skyscraper in Halifax) and more traditional retail assets (Greenfield Park IGA plaza.php 11/11 . net income fell 35. In 2011 free cash flow fell to $132.5% of Wajax Income Fund for $121. By the e nd of Se p te mb e r 2 0 1 1 Sob e ys lowe re d its fund e d d e b t to ca p ita l ra tio to 2 5 .18B. Sobeys also holds 100% ownership of Canada's second largest chain of movie theaters.3% and consequently (in May) both Standard & Poor's and DBRS raised Sobeys credit rating.4% it was as high as 32% just three years ago (2008). Empire Theatres (Sobeys has operated cinemas since 1984). Other Key Info -> In 1999 it acquired the Oshawa Group.15B from $14.1m square feet) in 836 communities. www. The company's 2011 revenue is 61% higher than it was in 2002 (145% increase in book value per share: 47. In fisca l 2 0 1 1 5 7 fre schco store s we re op e ne d . in 1999 (2000 fiscal year) Empire-Sobeys sales surpassed $10 billion for the first time . At the end of 2010 total locations (food retailing) under the various banners were 1. -> Sobeys went private in 2007 when it became a subsidiary of Empire Company Limited following Empire's purchase of $1. hitting 13.