Reference no: EM132216566

Sobeys Sobeys Inc. is one of the two national grocery store chains in Canada (the other is Loblaw). Sobeys distinguishes itself from Loblaw by offering just food (Loblaw also sells general merchandise such as electronics). Sobeys grew out of Nova Scotia mostly through acquisition of other grocery chains and now owns (or franchises) over 1,500 grocery stores all over Canada. Sobeys has revenues of over $21 billion and over 125,000 employees. The latest acquisition is Safeway Canada (over 200 stores in Western Canada). Sobeys offers different-size stores in different locations based on market size. The stores are also targeted to different customer demographics, although all formats primarily emphasize quality and freshness of products and customer service. There is large full-service format such as Sobeys, IGA extra, Safeway and Thrifty Foods; fresh service format such as Sobeys Urban Fresh and IGA in Quebec; small community service format such as Foodland, Marché Bonichoix, and Les Marchés Tradition; price service format such as FreschCo and Price Chopper; and convenience service format such as Needs Convenience. Sobeys also has a chain of drug stores (Lawtons Drugs) in the Atlantic Canada. In 2012, Sobeys purchased over 200 Shell retail gas stations and related convenience stores in Quebec and Atlantic Canada. In addition to national brands, Sobeys has its own private label brands Compliments and Signal. In addition, Sobeys also has its own manufacturer—Big 8 Beverages—for its private label soft drinks and water in Atlantic Canada. Sobeys is a wholly-owned subsidiary of Empire Company Limited which also has a 41.6% equity accounted interest in Crombie REIT, a real estate development and management company. Crombie owns the buildings and shopping plazas that Sobeys stores occupy, as well as other properties. Sobeys has implemented SAP (an ERP or enterprise software) nationwide. This has enabled reorganization of Sobeys from regional-based (Atlantic Canada, Quebec, Ontario, West Canada) to format-based. Now, there’s Sobeys Multi-Format, IGA Operations in Quebec and Safeway Operations, each with their own business unit presidents. Most products are bought centrally and distributed to the stores through 27 regional distribution centres (DCs) located throughout the country. Operations management activities and decisions are split between corporate office, Distribution and Logistics, and store operations. The corporate office initiates and manages various programs to increase the number of customers, including constant evaluation of performance of stores, closing low-profit stores and opening new stores, including modernization of stores. It also manages the computer technology, performs data analytics to improve category management, initiates training programs, and performs accounting and finance activities. Directors of Operations (i.e., district managers) interact with the store managers in their district to implement improvement programs such as sharing best practices. A store manager manages all facets of the store and ensures operational excellence in retail merchandising, inventory management, and customer relations. He/she ensures superior execution of the retail programs by communicating the operational requirements and/or changes and store vision to the employees. This includes occupational health and safety, food safety, and other regulatory requirements and procedures. The store manager also oversees recruitment, orientation, training, and performance management.

1. What are the inputs, processes, outputs, and feedback/ control for a grocery store such as Sobeys?

2. What are the operations decisions for running a grocery store such as Sobeys?