Sobeys
A Canadian supermarket brand operating nationwide through multiple grocery, discount, convenience and specialty-food banners.
Last updated August 21, 2026
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Overview
Sobeys is one of Canada's largest grocery retailers and the flagship supermarket banner of Empire Company Limited. The business began in 1907 in Stellarton, Nova Scotia, when John W. Sobey established a meat-delivery operation. His son Frank joined in 1921, helping the enterprise develop from a local food business into a regional chain. Sobeys opened its first supermarket in New Glasgow in 1946 and expanded throughout Atlantic Canada during the second half of the twentieth century. The company later pursued national growth through organic expansion, acquisitions and a portfolio of differentiated banners. Its 1998 acquisition of the Oshawa Group was a major turning point, bringing the IGA franchise system and several Ontario retail and wholesale operations into the business. Sobeys subsequently developed or acquired banners serving distinct customer segments, including Foodland for smaller communities, Thrifty Foods in British Columbia, FreshCo for discount grocery, Lawtons Drugs in Atlantic Canada, and convenience formats such as Needs and Sobeys Express. Empire's 2013 acquisition of Safeway Canada substantially increased Sobeys' presence in Western Canada, although the integration caused operational and financial difficulties, including store closures, divestitures and a large loss reported by Empire in 2016. The Sobeys banner generally serves mainstream supermarket customers with full-line groceries, fresh produce, meat, seafood, bakery, deli, prepared foods, household products and health-related merchandise. Its wider corporate portfolio allows Empire to cover conventional, discount, rural, urban, specialty and convenience formats. Other associated banners include IGA and IGA Extra, Foodland, FreshCo and Chalo! FreshCo, Thrifty Foods, Safeway Canada, Sobeys Extra, Sobeys Urban Fresh, Sobeys Express and selected regional convenience businesses. Empire also owns Farm Boy, which operates as a separate Ontario grocery business. Sobeys has invested in private-label products, store refurbishment, prepared foods, loyalty programs and digital grocery. Its private-label history includes Our Best, Our Compliments, Compliments, Compliments Value and related value ranges; the current private-label architecture is associated primarily with Compliments and other Empire labels. In 2018, Empire announced a partnership with Ocado to develop automated online-grocery fulfilment capability in the Toronto area. Sobeys and related banners have also expanded delivery and pickup services through store-based fulfilment. The chain operates in all ten Canadian provinces, with regional banner choices reflecting local language, demographics and shopping patterns. Sobeys participates in Canada's voluntary Scanner Price Accuracy Code. Its customer proposition combines a broad supermarket assortment, fresh-food merchandising, prepared meals and a national procurement platform with local and regional operating identities. The brand remains active under Empire Company Limited, while its exact store count, banner composition and loyalty arrangements change over time.
History
Sobeys traces its origins to 1907, when John W. Sobey began delivering meat in Stellarton, Nova Scotia. In 1921, his son Frank joined the enterprise and expanded it with six grocery stores serving communities in Pictou and Antigonish counties. The business entered supermarket retail in 1946 after acquiring the operations of Barker Store and opening its first supermarket in New Glasgow. By the late 1970s, the chain had grown to 65 locations. During the following decades Sobeys became a dominant Atlantic Canadian grocer and expanded beyond its original region. Its move into southern Ontario in the 1980s placed it in direct competition with Loblaws and formed part of a broader national contest among Canadian supermarket groups. The company also held interests in food businesses outside its core Atlantic network, including investments connected with Hannaford, Provigo, Petrini's and Nash Finch during earlier periods. The 1998 purchase of the Oshawa Group transformed Sobeys' national position. The transaction brought the Canadian IGA franchise system, Ontario regional chains and wholesale and food-service operations into Empire's grocery platform. Some Atlantic IGA stores were separately sold to Loblaws for competition reasons. Sobeys continued to rationalize inherited banners, converting several smaller chains into Sobeys, Price Chopper or Foodland locations. In 2002 the company introduced a broad store-design and service initiative called Ready to Serve. It also expanded its private-label strategy, moving from the Sobeys name to Our Best, then adopting Our Compliments after the Oshawa transaction. The private-label family was later shortened to Compliments, with value-oriented and child-focused sub-ranges appearing at different times. Sobeys lost the 2005 auction for A&P Canada to Metro. In 2007 it announced a C$253 million offer for British Columbia's Thrifty Foods, adding a regional banner with a strong presence on Vancouver Island. In 2010 it launched FreshCo as a discount format, initially converting selected Price Chopper stores in Ontario. Sobeys also operated smaller Foodland stores, urban experiments, convenience formats and pharmacy-related businesses. The most consequential expansion came in 2013, when Empire agreed to buy Safeway's Canadian operations for about C$5.8 billion. The purchase added more than 200 stores, principally in Western Canada, but regulatory approval required the sale of locations to competing operators. Sobeys later closed numerous underperforming stores, particularly in the West. Integration problems were associated with changes to Safeway's loyalty program, private labels and merchandise execution. In 2016, Empire CEO Marc Poulin departed abruptly after the company reported a C$942.6 million loss attributed in significant part to Safeway integration challenges. Empire continued to reposition the network. FreshCo expanded westward in 2019, including Chalo! FreshCo stores designed for communities with large South Asian Canadian populations. Empire also acquired selected assets and liabilities of Co-op Atlantic in 2015 and agreed to acquire Farm Boy in 2018, leaving Farm Boy to operate separately while supporting its Ontario expansion. Sobeys announced a move toward paper grocery bags and invested in digital shopping, including an Ocado partnership announced in 2018 for automated online-order fulfilment in the Toronto area. Loyalty arrangements evolved from Club Sobeys and Club Thrifty Foods to Air Miles in several regions. Empire later moved its principal grocery loyalty proposition to Scene+, announced in 2022. Today, Sobeys is the flagship of a national Empire grocery network operating across all ten provinces. The business combines conventional supermarkets with IGA, discount, rural, specialty, pharmacy and convenience formats, and continues to adapt its physical stores and online services to regional demand and changing grocery habits.
- 2022
Scene+ becomes the loyalty platform
[1]Empire announces the transition of its grocery loyalty proposition to Scene+.
- 2019
Western FreshCo expansion
[1]FreshCo opens in Western Canada, including Chalo! FreshCo locations in British Columbia.
- 2018
Ocado partnership announced
[1]Empire selects Ocado technology for an automated online-grocery fulfilment centre in the Toronto area.
- 2018
Farm Boy acquisition agreed
[1]Empire agrees to acquire Farm Boy for C$800 million and maintain it as a separate business.
- 2016
Safeway integration crisis
[1]Empire reports a substantial loss linked to integration difficulties and its CEO Marc Poulin leaves the company.
- 2013
Safeway Canada acquisition announced
[1]Empire announces the acquisition of Safeway's Canadian operations for approximately C$5.8 billion.
- 2010
FreshCo launched
[1]Sobeys introduces FreshCo as a discount grocery banner, initially in Ontario.
- 2007
Thrifty Foods transaction announced
[1]Sobeys announces a C$253 million offer for British Columbia grocer Thrifty Foods.
- 1998
Oshawa Group acquired
[1]The acquisition brings IGA Canada and additional regional retail, wholesale and food-service operations into Sobeys.
- 1946
First supermarket opens
[1]Sobeys opens its first supermarket in New Glasgow after acquiring Barker Store's operations.
Products and positioning
Mainstream Canadian supermarket retail, supported by discount, rural, specialty and convenience formats.
conventional grocery
Sobeys supermarkets
The core full-service supermarket format offers packaged groceries, fresh produce, meat, seafood, bakery, deli, dairy, frozen foods, beverages, prepared meals and household merchandise. Store size and assortment vary by province and community, with larger Sobeys Extra locations providing expanded fresh-food and prepared-food departments.
supermarket banner · 1998
IGA and IGA Extra
IGA is Sobeys' principal Quebec grocery banner and also operates in selected Western Canadian and Atlantic communities. IGA Extra locations generally provide a larger supermarket assortment and are adapted to local French-speaking and regional shopping markets.
discount grocery · 2010
FreshCo and Chalo! FreshCo
FreshCo is Sobeys' discount grocery format, created to compete in price-sensitive markets. It began with Ontario conversions of Price Chopper stores and later expanded into Western Canada. Chalo! FreshCo locations use the FreshCo proposition while emphasizing assortment and community relevance for South Asian Canadian shoppers.
rural and small-format grocery
Foodland
Foodland serves smaller towns and rural communities, particularly in Atlantic Canada, Newfoundland and Labrador, and Ontario. Its stores provide essential groceries and fresh foods in locations that may not support a large conventional supermarket.
regional supermarket · 2007
Thrifty Foods
Thrifty Foods is a British Columbia grocery chain acquired by Sobeys and associated especially with Vancouver Island and the Victoria market. The banner emphasizes fresh foods, prepared meals, bakery and conventional supermarket services, including online ordering in its operating region.
supermarket banner · 2013
Safeway Canada
Safeway Canada became part of Empire through the 2013 acquisition of Safeway's Canadian operations. The banner remains associated with Western Canadian supermarkets and has been subject to integration, store-closure and format-repositioning initiatives.
convenience grocery
Sobeys Express
Sobeys Express stores provide a smaller selection of groceries, fresh produce, prepared and take-out foods, and convenience products. Some locations operate alongside fuel stations and are designed for quick-trip shopping.
pharmacy and drug retail
Lawtons Drugs
Lawtons Drugs is an Atlantic Canadian pharmacy and drugstore banner within Empire's wider retail portfolio. Locations combine pharmacy services with health, beauty, household and convenience merchandise.
private label · 2005
Compliments
Compliments is Sobeys and Empire's principal food private-label family. It spans everyday packaged foods, beverages, household products and other grocery categories, and was developed to provide a national alternative to competing supermarket private labels.
Controversies
2022
Foodland flyer migrant-worker controversy
A Foodland promotional flyer was criticized because it featured farm owners who were alleged to have mistreated Jamaican migrant workers. The controversy concerned the appropriateness of the advertising imagery and the association with the allegations.
Marketing campaigns
- 2019Paper grocery bags transition
Canada
Sobeys announced a chain-wide move away from plastic grocery bags toward paper bags, linking store operations with changing environmental expectations and public policy.
Outcome. The company stated that the transition would be completed by the end of 2020.
- 2002Ready to Serve
Canada
A broad store-design and customer-service initiative intended to modernize Sobeys locations and strengthen the shopping experience through presentation, service and fresh-food execution.
Outcome. Implemented across the chain as part of a wider format and service redesign.
Brand decisions
2018
Develop automated online-grocery fulfilmentStrategyBackground
Online grocery demand was increasing, while Empire sought a scalable fulfilment model beyond store-based picking.
Action taken
Empire partnered with Ocado to develop an automated grocery fulfilment centre in the Toronto area.
Aftermath
The partnership formed a central part of Empire's digital-grocery and delivery strategy.
2013
Acquire Safeway CanadaM&ABackground
Empire sought a major expansion of Sobeys' Western Canadian footprint through Safeway's Canadian stores and related assets.
Action taken
Empire agreed to purchase the Canadian operations for approximately C$5.8 billion, subject to regulatory approval.
Aftermath
The transaction added more than 200 stores but required competition-related divestitures and was followed by integration problems, store closures and a significant reported loss.
Acquisition value. C$5.8 billion (2013 announcement)
2010
Launch FreshCo discount bannerProduct launchBackground
Sobeys needed a format aimed more directly at price-sensitive shoppers and discount competitors.
Action taken
The company launched FreshCo, initially through selected Price Chopper store conversions in Ontario.
Aftermath
FreshCo later expanded into Western Canada and added Chalo! FreshCo locations.
Recent events
Reported
Voilà by Sobeys launches curbside pickup in Nova Scotia[4]
Empire Company Limited expanded its e-commerce offering to Atlantic Canada with the launch of Voilà by Sobeys Curbside Pickup, available at three Sobeys store locations in Nova Scotia.
Reported
Empire becomes title sponsor of District Ventures programs[5]
Empire partnered with District Ventures and became title sponsor of its Accelerator program and District Ventures Kitchen. The partnership offers participating Canadian food entrepreneurs support from Empire, including coaching and opportunities to bring products to its store shelves.
Reported
Sobeys and Caper test intelligent shopping cart[6]
Sobeys partnered with Caper to test an intelligent shopping cart at a store in Oakville, Ontario. The cart scans and weighs items, tracks purchases and allows shoppers to pay through the cart.
Reported
Sobeys Simcoe receives Foodland Ontario Retailer Award[7]
Sobeys in Simcoe received the Foodland Ontario Retailer Award for local food promotion, presented to the store's managers by Haldimand-Norfolk MPP Toby Barrett.
Sources7 sources
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