The Globe and Mail reports in its Friday edition that Empire chief executive officer Michael Medline believes "the days of discount greatly outperforming full service are coming to an end." The Globe's Susan Krashinsky Robertson writes that compared with its rivals Loblaw and Metro, a smaller percentage of Empire's store network is in discount. Mr. Medline says the sales gap has narrowed between its discount stores such as FreshCo and full-service stores such as Sobeys and Safeway -- to a degree that surprised executives. Chief financial officer Matt Reindel says this fiscal year has been "the worst possible period" for Empire's full-service business, but that management is "cautiously optimistic." On Thursday Empire reported that its net earnings grew to $134.2-million or 54 cents a share in its third quarter ended Feb. 3, compared with $125.7-million or 49 cents in the same year-ago period. The results were affected by $39.1-million in costs that the company recorded in the prior year, related to a cybersecurity breach that hit the company in November, 2022. Empire has so far recovered $15.5-million in insurance related to the breach this fiscal year. It expects further insurance recoveries in its fourth quarter.
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