Empire Company Ltd., owner of Sobeys supermarket chain, has declared a fourth-quarter loss of $912.6 million.
It’s the purchase of the Safeway stores across Western Canada that accounted for the loss.
The loss for the whole year amounts to $2.13 billion compared with a profit of $419 million the previous fiscal year.
The company says one reason for the poor results is the declining economic climate in Alberta and Saskatchewan where there have been massive layoffs by oil companies.
Despite the gloomy results, the company increased its sales by $690 million to $24.6 billion, but the fiscal year had 53 weeks, one more than the previous fiscal year.
Sobeys is Canada’s second-largest supermarket chain. The largest is Loblaws which last year bought the Shoppers Drug Mart chain.