Empire Company Limited reported fiscal 2026 third-quarter results on 12 March 2026, with sales of C$7.89 billion, an increase of 2.1% year-on-year. Food sales across the company’s Canadian supermarket network rose 3.0%, while same-store food sales increased 2.0%.

The company recorded a net loss of C$385 million, primarily due to a C$746 million impairment linked to a review of its e-commerce network. Adjusted net earnings reached C$164 million, with adjusted earnings per share of C$0.72, compared with C$0.62 a year earlier.

Empire operates one of Canada’s largest grocery retail networks through its subsidiary Sobeys, which includes banners such as Safeway, IGA, FreshCo, Farm Boy, Longo’s and Foodland.

At a glance

  • Quarterly sales reached C$7.89 billion, up 2.1% year-on-year.

  • Food sales increased 3.0% across the retail network.

  • Same-store food sales grew 2.0% during the quarter.

  • The company reported a net loss of C$385 million due to a C$746 million e-commerce impairment.

  • Adjusted net earnings reached C$164 million with adjusted EPS of C$0.72.

  • Online grocery sales across platforms increased 10.3% year-on-year.

  • The FreshCo discount banner continues expanding in Western Canada.

How did Empire’s supermarket sales perform?

Empire’s food retail segment, led by Sobeys and its affiliated grocery banners, generated C$7.89 billion in sales during the quarter, representing C$165 million growth compared with the same period last year.

Sales growth was supported by performance in full-service supermarket banners, discount retail formats and the company’s national wholesale distribution network.

Why did the company report a quarterly loss?

Despite stronger underlying supermarket performance, Empire recorded a net loss of C$385 million due to a C$746 million impairment charge tied to its e-commerce operations.

Following a strategic review, the company decided to wind down the Calgary customer fulfilment centre, close a support facility in Edmonton, and pause development of the Vancouver fulfilment centre.

These charges include asset impairments, facility closure costs and contract termination payments.

How is Empire reshaping its online grocery strategy?

Empire is shifting its e-commerce model toward a mix of dedicated fulfilment centres and third-party delivery platforms.

The company will continue operating fulfilment centres in Toronto and Montreal, while expanding partnerships with DoorDash, Instacart and Uber Eats to extend delivery coverage across its supermarket banners.

Online grocery sales across the company’s digital platforms increased 10.3% during the quarter.

What role does FreshCo play in Empire’s expansion?

Empire continues to grow its FreshCo discount supermarket format, particularly in Western Canada.

As of March 2026, 51 FreshCo stores operate in the region, with two additional locations expected before the end of fiscal 2026. The format focuses on value pricing and multicultural product assortments to compete in Canada’s discount grocery segment.

How is the company investing in technology?

Empire is implementing a company-wide upgrade of its enterprise systems by migrating its legacy ERP platform to SAP S/4HANA.

The system transformation aims to improve financial reporting, supply chain visibility, procurement processes and operational analytics, with full deployment expected over the next two fiscal years.

What happens next?

Empire expects the restructuring of its online grocery operations to generate approximately C$95 million in annualised operating income improvements, beginning in the fourth quarter of fiscal 2026 and reaching full run-rate benefits in fiscal 2027.

The company also plans continued investment in store renovations, new supermarket openings, supply chain productivity and digital retail capabilities across Canada’s supermarket sector, as competition intensifies across the Canada supermarket market and retailers expand both physical and digital grocery networks.

Editor’s Note: This article is based on Empire Company Limited’s fiscal 2026 third-quarter results announcement released on 12 March 2026 and the company’s official financial disclosures.