Reference no: EM133048898
Sobeys Inc. is the second-largest grocery store chain in Canada (the largest is Loblaw). Sobeys distinguishes itself from Loblaw by offering better quality fresh food and customer service. Sobeys grew out of Nova Scotia mostly through the acquisition of other grocery chains. The integration of the latest acquisition, Safeway Canada (over 200 stores in Western Canada), has been challenging. Sobeys now owns 908 grocery stores and franchises 977 stores throughout Canada. Sobeys has revenues of over $24 billion and employs over 125,000 people. Sobeys is also a wholesaler to over 8,000 retail accounts. Sobeys has five different store sizes and formats and uses them in each location based on market size and customer demographics. There is the large full-service format (such as Sobeys, Sobeys extra, IGA extra, Safeway and Thrifty Foods); urban fresh format (such as Sobeys Urban Fresh and IGA in Quebec); small community format (such as Foodland, Marché Bonichoix, and Les Marchés Tradition); discount format (such as FreshCo and Price Chopper); and convenience format (such as Needs Convenience and IGA express). Approximately 350 large full-service stores have in-store pharmacies. Sobeys also has a chain of 78 drugstores (Lawtons Drugs) in Atlantic Canada, over 300 retail gas stations, and 80 liquor stores. In addition to national brands, Sobeys has its own private label brands: Compliments (over 5,000 products) and Signal. 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 41.5 percent equity 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 enterprise resource planning software) nationwide and across its brand stores. The stores are organized by region: Atlantic Canada/Ontario, Quebec, and Western Canada. Most products are bought centrally and distributed to the stores through 34 regional distribution centres (DCs) located throughout the country. The fully automated Vaughan and Terrebonne DCs are state of the art. Sobeys is retrofitting the Rocky View Alberta DC that it bought from Target Canada. Operations management activities and decisions are split between corporate office and store operations. The corporate office initiates and manages various programs to increase the number of customers, including constant evaluation of store performance, closing low-profit stores, opening new stores, and modernizing existing 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 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 makes Sobeys' a big player in the industry? (Characteristics)
2. What are they good at? (Advantages)
3. Include recent incidents or policy changes that have been publicized. Remember, this is what helps develop your insights, so don't be stingy about doing research.
Please use this case for the answers and also I can use a little bit of google search.