Freshco Announces New Stores for Western Expansion

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FreshCo announces new stores for western expansion

July 26, 2019

Empire Co. Ltd. announced the next four locations for the expansion of its FreshCo discount banner into western Canada. With these four locations in Saskatchewan, the company has now confirmed 22 of approximately 65 locations in the west. In fiscal 2018, the company announced plans to convert approximately 25 percent of its underperforming Safeway and Sobeys locations over a five-year

period.

“We are one-third of the way selecting and opening our FreshCo stores in western Canada,” said Mike Venton, general manager of discount. “We continue to make smart investments and leverage our current real estate network to deliver exactly what our customers want. We are winning market share we simply couldn’t compete for in the past. The customer feedback so far has been strong and

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we’re moving full steam ahead with our rollout.”

Most recently, the company opened its first two Chalo! FreshCo stores in the west in Surrey, BC. Building on the traditional FreshCo discount offer of quality fresh products at industry-leading low prices, Chalo! FreshCo stores offer an expansive South Asian product assortment. The company plans to open four more FreshCo stores in BC in 2019 and seven in 2020.

“Our marketing leading up to each store opening has been very strong and focused on connecting with the local community in a meaningful way,” said Venton. “We will continue to push hard and win in this hyper-competitive discount space. So far, we’ve effectively differentiated ourselves as the discount grocery retailer of choice with exceptional quality, product assortment, fresh produce and price.”

The FreshCo stores in Saskatchewan are expected to open Summer 2020, depending on the timing of construction schedules and permits. The respective Safeway locations will all close in March 2020.

Store closure costs will be charged to earnings in the first quarter of fiscal 2020. The combined closure costs related to store conversions are estimated to be approximately $6 million. These costs, along with the costs from the June FreshCo announcement and two Farm Boy conversions, total $21 million, which will be charged to operating earnings in the first quarter of fiscal 2020.