Can I assume we will lose either Safeway or Sobeys in the east end of Regina.
http://www.leaderpost.com/business/comme...jority+Western+Canada/9976530/story.html
CALGARY - Sobeys will close about 50 “underperforming” stores, the majority of them in Western Canada.
The national grocer announced Thursday that the company completed a detailed full review of its retail store network during the fourth quarter of its fiscal year 2014.
“This review aligns with management’s ongoing focus of enhancing the productivity and performance of the network and logically follows the acquisition of Canada Safeway which was completed in the third quarter of fiscal 2014,” it said in a news release.
“Based on this detailed review, Sobeys has determined that consistently underperforming retail stores, representing approximately 50 stores (1.5 million of total gross square footage) and 3.8 percent of the total retail network gross square footage, will close. Approximately sixty percent of the affected stores are located in Western Canada.”
The company said the move will strengthen the quality of Sobeys’ store network and is expected to improve net earnings as a result of cost savings. But, it will also result in a reduction in future sales of about $400 million or 1.9 percent of total sales.
“The rationalization and restructuring costs associated with these store closures amount to $169.8 million and are included in selling and administrative expenses for the fourth quarter ended May 3, 2014,” it said. “This expense consists of $137.1 million for severance, site closing and other costs, $35.8 million associated with the write-down of property, equipment and intangible assets, and a $3.1 million reversal of straight-line lease provisions.”
Earlier this year, it was announced that Sobeys is selling 30 stores in Western Canada for about $430 million, including 15 locations to Overwaitea and 14 to Federated Co-operatives Ltd., under deals approved as part of a larger agreement with the Competition Bureau after Sobeys’ purchase of Canada Safeway last year.
Sobeys is based in Stellarton, N.S. along with parent company Empire Co. It owns or franchises more than 1,500 stores in all 10 provinces under retail banners that include Sobeys, Safeway, IGA, Foodland, FreshCo, Thrifty Foods, and Lawton’s Drug Stores as well as more than 330 retail fuel locations.
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