Sobeys Locations Safeway Locations

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Figure 1: Store Locations Across Canada

Sobeys Locations

Safeway Locations

104

24

32

75

141

93*

15

16

32

33

*Includes 10 liquor stores

Note: Sobeys counts includes retail petro stations

Source: Company reports and presentations, Kantar Retail analysis

334

6

596

69

228

© Copyright 2013 Kantar Retail 1

Figure 2: Shopper Ratings of Store Attributes

Among Canada Safeway and Sobeys shoppers

Sobeys Shoppers Satisfaction

(% very satisfied or satisfied)

Clean Store

Quality Of Fresh Offering

Variety Of Items I Want

Good customer service

Products Always In-Stock

Fast Check-Out

Loyalty Rewards

Supports The Community

Is A True Canadian Store

Enticing Deals

Value For Money

0% 20%

54%

52%

47%

70%

56%

65%

90%

86%

80%

77%

72%

40% 60% 80% 100%

Note: asked in relation to grocery, HBC, and consumables

© Copyright 2013 Kantar Retail 2

Source: TNS Canada – April 2013, Kantar Retail analysis

Implications for Sobeys’ Suppliers

Considerations in light of Canada Safeway acquisition

Sobeys’ Position

Sobeys will be the second biggest retailer in terms of sales , with a dramatically increased presence in the West

Loyalty card reach will expand, through alignment with the Club card and potentially through

Safeway’s just for U tools

Private label expertise and scale will accelerate, as Safeway also has a sophisticated program

Supplier Implication

• Anticipate the retailer to leverage its increased bargaining clout, driving need for more resources

• Expect conventional grocers like Metro to seek added promotional support, as Sobeys new scale will help enable further price position investments

• Leverage your insights to put their shopper data in context, particularly in Alberta

• Watch for added promotional investment pressures as the retailer looks to develop penetration and engagement with its programs

• Identify your brand’s positioning versus

Compliments and O Organics, anticipating where the retailer may look to insert its own labels

• Consider cross-promotions with non-competing private labels as Sobeys adds labels at Safeway

© Copyright 2013 Kantar Retail

Source: Kantar Retail analysis

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