Sobeys Ads Feature Celebrity Chef Oliver
Oct 08, 2013
by Hollie Shaw
Sobeys Inc. is aiming to carve out a more distinct image for itself in Canada’s relentless grocery war by touting a new healthy food platform and partnering with U.K. chef Jamie Oliver to market the initiative and develop food products for the No. 2 grocer.
But will it be enough to increase the chain’s flat sales in a market driven by low consumer prices, where average grocery square footage has been growing at more than twice the historical rate?
“Clearly the market is extremely competitive and everybody plays the promotional game on a weekly basis to try to get customers into the store and it translates into aggressive promotions and very fickle behaviour from the consumer – they are shopping in more places,” said Marc Poulin, chief executive of Nova Scotia based Empire Co.’s grocery subsidiary, said in an interview.
“It has had an impact on our margins. But at the end of the day, we strongly believe that this company has more to deliver to the Canadian public than a weekly special.”
Sobeys has launched a new marketing campaign with the tagline “Better Food For All” with signature fresh products, Certified Humane® chicken, pork and beef, goods highlighted with “Sobeys better ingredients” in the grocery department and a bigger section of products free from artificial flavours and preservatives. The first ad spot features Oliver dashing through a suburban neighbourhood, tossing produce to residents and urging them to “not take out, cook in – it’s faster and it costs less.”
Sobeys’ drive comes in one of the toughest years yet for the Canadian grocery sector, as companies grapple with trying to maintain or boost sales in an environment of flat to deflating food prices and added square footage from Walmart and Costco.
Sobeys’ acquisition of Western Canada’s Safeway stores this summer was aimed at shoring up its national footprint and buying power, but the pricing battle with discount players and rivals Loblaw and Metro has dragged on results.
Last month, parent company Empire Co. reported earnings of $1.32 per share, sharply lower than analyst mean estimates $1.55. “About 13 cents of the miss was due to lower-thanexpected operating results at Sobeys,” analyst Peter Sklar of BMO wrote in a note to clients, noting the retailer had experienced two consecutive quarters of negative gross margin trend. And first-quarter same-store sales at Sobeys, an important industry benchmark, fell 0.1 per cent after a flat prior fiscal year.
Sobeys has always maintained a core focus on food retailing compared with Loblaw, which has also marketed healthier food options to consumers over the years.
Source: http://www.windsorstar.com/business/Sobeys+feature+celebrity+chef+Oliver/9009717/story.html
The Windsor Star
Posted: October 22, 2013 by Certified Humane
Sobeys Ads Feature Celebrity Chef Oliver
Oct 08, 2013
by Hollie Shaw
Sobeys Inc. is aiming to carve out a more distinct image for itself in Canada’s relentless grocery war by touting a new healthy food platform and partnering with U.K. chef Jamie Oliver to market the initiative and develop food products for the No. 2 grocer.
But will it be enough to increase the chain’s flat sales in a market driven by low consumer prices, where average grocery square footage has been growing at more than twice the historical rate?
“Clearly the market is extremely competitive and everybody plays the promotional game on a weekly basis to try to get customers into the store and it translates into aggressive promotions and very fickle behaviour from the consumer – they are shopping in more places,” said Marc Poulin, chief executive of Nova Scotia based Empire Co.’s grocery subsidiary, said in an interview.
“It has had an impact on our margins. But at the end of the day, we strongly believe that this company has more to deliver to the Canadian public than a weekly special.”
Sobeys has launched a new marketing campaign with the tagline “Better Food For All” with signature fresh products, Certified Humane® chicken, pork and beef, goods highlighted with “Sobeys better ingredients” in the grocery department and a bigger section of products free from artificial flavours and preservatives. The first ad spot features Oliver dashing through a suburban neighbourhood, tossing produce to residents and urging them to “not take out, cook in – it’s faster and it costs less.”
Sobeys’ drive comes in one of the toughest years yet for the Canadian grocery sector, as companies grapple with trying to maintain or boost sales in an environment of flat to deflating food prices and added square footage from Walmart and Costco.
Sobeys’ acquisition of Western Canada’s Safeway stores this summer was aimed at shoring up its national footprint and buying power, but the pricing battle with discount players and rivals Loblaw and Metro has dragged on results.
Last month, parent company Empire Co. reported earnings of $1.32 per share, sharply lower than analyst mean estimates $1.55. “About 13 cents of the miss was due to lower-thanexpected operating results at Sobeys,” analyst Peter Sklar of BMO wrote in a note to clients, noting the retailer had experienced two consecutive quarters of negative gross margin trend. And first-quarter same-store sales at Sobeys, an important industry benchmark, fell 0.1 per cent after a flat prior fiscal year.
Sobeys has always maintained a core focus on food retailing compared with Loblaw, which has also marketed healthier food options to consumers over the years.
Source: http://www.windsorstar.com/business/Sobeys+feature+celebrity+chef+Oliver/9009717/story.html
Category: news