Empire Co. Ltd., the entity behind the renowned Sobeys grocery banner, has reported a second-quarter profit of $159-million, marking a decrease from the profit generated during the same period a year ago. The new CEO of Empire, Pierre St-Laurent, has shed light on his future plans for the company, stating his intent to fully leverage the company’s investments and enhance customer relevance.
New CEO Shares Vision for Empire Co. Ltd.
Pierre St-Laurent, who stepped into the role of CEO last month, stated that his primary focus would be to exploit the full potential of the investments Empire has made in recent years. He further emphasized his long-term vision to focus on customer relevance. “Longer-term, we will focus on where I believe it matters the most – focusing on being relevant for customers,” he shared during an earnings call.
Key Opportunities in Cost Reduction
When questioned about significant opportunities in cutting costs, St-Laurent mentioned that the company could enhance customer experience and stimulate growth by being more agile. However, he stressed that discipline would be crucial in executing this strategy.
Profit Decline in Second Quarter
The newly appointed CEO’s comments surfaced as Empire announced a drop in its profits for the latest quarter. The grocer earned $159-million for the quarter ending on November 1, marking a decrease from the $173-million profit it made during the corresponding quarter last year. The company’s stock value also experienced an 8% decrease, trading at $46.79 on the Toronto Stock Exchange.
Grocer’s Margins Affected by Labour Action
St-Laurent indicated that a labour dispute at the Sobeys distribution centre in Alberta partially impacted the company’s margins. Despite this, RBC analyst Irene Nattel stated that the operating results were consistent with the forecast. She attributed this to robust merchandising strategies designed to address the ongoing value-seeking behaviour of consumers.
Empire’s Strategy Moving Forward
St-Laurent acknowledged that Empire’s discount segment is “underdeveloped”. He stated, “We have a lot of white space in discount, but we won’t just focus on discount because there are other markets where it’s not a discount market and there’s more opportunity to grow our Farm Boy, our Longo’s, our Food Land.”
The company’s second-quarter sales totalled $8-billion, up from $7.8-billion in the same quarter last year. Same-store sales rose by two per cent, while food same-store sales increased by 2.5 per cent. St-Laurent added that several small initiatives are in progress that will deliver better overall margins as the company focuses on realizing the full value of its investments.
Future Investment and Board Appointments
According to Empire’s 2025 annual report, the company plans to invest about $850 million during fiscal 2026. This investment will be divided between new store openings and renovations, IT and business development projects, as well as logistics and sustainability.
In further news, Empire announced the appointment of Jo Mark Zurel to the company’s board of directors. Zurel currently serves as the Chair of the board at Fortis Inc., and also sits on the boards of Major Drilling Group International Inc. and Highland Copper Co. Inc.
