Sobeys, Canada’s second-largest supermarket chain, reports first-quarter sales increased by eight-tenths of one per cent which is less than the rate of food-prices inflation.
Profit slipped from $261 million to $207.8 million.
The company sold its Western Canada gas stations to Shell Canada and slimmed its executive ranks by offering buyouts.
It took a financial hit to end a partnership with Ocado Group PLC which provided electronic services for Sobeys’ Viola home-delivery service.
When those one-time deals are excluded, profits from ongoing operations amounted to $218.7 million, the company said.
Sales in Sobeys stores increased by one per cent, but Viola on-line shopping and home delivery sales increased by 26.2 per cent.
It said shoppers are shifting to its Freshco stores which feature less selection at lower prices.
