Sobeys sales soar in Q4, Voilà launches
Higher private brand penetration played a part in Sobeys Inc.’s double-digit jumps in same-store sales and gross margin for its fourth quarter, ended May 2.
The Canadian retailer is owned by Empire Co., posting a fourth quarter same-store sales lift (excluding fuel) of 18%, year over year. The company recorded adjusted net earnings of $181.2 million ($0.67 per diluted share) compared to $126.5 million ($0.46 per diluted share) last year, an increase of 43.2%.
Gross margin for the quarter increased to 25.9% from 25.4% last year. The increase was primarily a result of category reset benefits, the effect of COVID-19 sales mix changes between banners, a less promotional environment and higher private label penetration, per the retailer’s reporting.
“This is one of our proudest quarters in Empire’s 113 year history,” said Michael Medline, president and CEO, Empire. “Our 127,000 teammates across the country gave their all to keep our customers safe and healthy and our grocery shelves stocked during the unprecedented coronavirus pandemic. Due to their herculean efforts, our company saw significant market share increases. Our team has also surpassed our Project Sunrise turnaround targets. This three-year transformation is one of the most significant turnarounds in Canadian retail history."
Particularly interesting for the quarter, the retailer noted that online grocery sales tripled during the coronavirus pandemic, and it just launched its e-commerce platform Voilà in June, which will further the capability.
Voilà is powered by Ocado Group’s industry-leading technology and fills orders through its state-of-the-art automated Customer Fulfillment Centre in Vaughan, Ontario. Robots assemble orders efficiently and safely, resulting in minimal product handling, while Voilà teammates safely deliver orders directly to the customer’s home.
“Voilà by Sobeys is the future of online grocery retail in Canada, and now it’s here,” said Medline. “Ocado’s technology gives us the best e-commerce platform in the country – there’s nothing like it in North America. We can’t wait to share Voilà with our customers in the GTA this summer and across Canada in the future."