Sobeys Parent Empire Company Limited Unveils Project Horizon, A New Three-Year Growth Strategy
STELLARTON, NOVA SCOTIA, CANADA - Empire Company Limited, parent company to Sobeys, is a force to be reckoned with. The company recently outlined its new three-year strategy to deliver an incremental $500 million in annualized EBITDA by the end of fiscal 2023. Building from the overwhelming success of Project Sunrise, Empire’s previous three-year strategy, the company is well-positioned to accelerate a new ambitious growth plan: Project Horizon.
“Empire now has the team, the structure, and the vision to achieve its sales and earnings potential,” said Michael Medline, President and CEO. “Even though we exceeded our Project Sunrise savings target of $550 million, there is still substantial value to unlock through Project Horizon. As the retail landscape in Canada continues to react and shift under the seismic waves caused by the pandemic, it is clear now, more than ever, that we must be able to serve customers where, when, and how they want to shop. We will invest in our core store business to drive growth and will move much faster with Voilà customer fulfillment centres and a new, exciting store pick solution, using Ocado technology.”
According to the press release, Empire delayed the launch of its new strategy, originally planned for release in May, as the company was focused on keeping its teammates and customers safe and keeping its stores filled through the peak of the COVID-19 pandemic lockdowns. Additionally, management took the time to review social and economic implications of the pandemic on the Canadian environment to ensure they were reflected in the strategy.
The company expects to achieve $500 million in benefits over the next three years by growing market share and building on its cost and margin discipline. As noted in the release, the $500 million does not include benefits or risks, if any, from pandemic related sales and cost impacts.
“Empire’s strategy will be delivered by our incredible team of 127,000 teammates and franchisee partners from coast-to-coast. Diversity, equity, and inclusion efforts that drive tangible social and organizational change within our company and the communities we serve will be an important priority to our team,” said Medline.
A few elements in Empire’s new strategy include:
- Invest in Empire’s store network
- Win Canadian grocery e-commerce
- Grow Empire’s private label portfolio
- Continue to build merchandising sourcing efficiencies
- Optimize supply chain productivity
- Improve system and process
For more information on how Empire plans to grow its market share and build on cost and margin, click here.
How will the retail landscape change? Only time will tell, and ANUK will be there to report it.