Sobeys To Convert IGA Stores To Sobeys Brands

CBC:

Obeys Inc. is planning a major shakeup of its IGA stores in Ontario that will see most of them re-emerging under the Sobeys, Foodland or Price Chopper banners.

Craig Gilpin, president of Sobeys Ontario, told IGA franchisees in a confidential letter obtained by CBC News Online that he plans to convert most IGA stores in Ontario to the Sobeys’ brands.

As part of the corporate reorganization, Sobeys is offering to buy out any of the IGA independent franchisees who do not wish to convert their stores to the new corporate look.

“All IGA franchisees will be offered the option to sell their business to Sobeys according to a fair-value, buy-out formula,” Gilpin said.

But Sobeys says it will continue to honour its franchise agreement with any IGA independent franchisees who want to keep their IGA brand.

Under a major re-organization, Sobeys is converting its stores to five formats. They include:

* Full-service flagship stores under the Sobeys brand.
* Community-service stores under the Foodland banner.
* Fresh-service Sobeys stores.
* Lower-priced Price Chopper.
* Convenience stores under the Sobeys Express name.

The IGA stores will show up under the Sobeys format, Foodland or Price Chopper brands.

The change is expected to happen over the next few months. Sobeys is already converting some of its IGA stores to the new look with major rebuilding programs.