As part of its ongoing Project Sunrise restructuring plan, Canadian retailer Sobeys has announced it will continue to streamline its executive positions in order to limit costs and grow its bottom line. The Chronicle Herald noted, in a report, that Sobeys is planning to eliminate 75 executive positions at different offices across Canada.
“The grocery business is highly competitive and our regionally-based structure slowed us down,” said Michael Medline, President and Chief Executive Officer, in a statement. “As we move to a national, functionally-led company, we have an aggressive goal to transform our organization and leverage our size and scale,”
The company introduced “Project Sunrise” this May, a program designed to deliver $500 million in annualized savings by 2020. At the time of the announcement, our sister publication reported, the company said that cost savings will come from the following:
Medline noted, in a statement to The Telegram, that after Sobeys completes Project Sunrise, the company will have a simpler, leaner structure and be more efficient, and better prepared to leverage its $24-billion national scale.
“Change of this magnitude is not easy on our employees, but we remain committed to making tough decisions, and executing the necessary changes, to ensure our future success,” Medline said. “This will free us up to be extremely nimble, grow market share, and thrill our customers in the more than 1,500 communities that we will continue to operate in.”
So far, the company's strategy seems to be succeeding in a big way. After the announcement went public, Empire Company, Sobeys’ parent company, saw its stock rise 41 cents, or 1.88 per cent, from $21.84 to $22.25 as of the end of trading on Tuesday, October 10th.
For more on Sobeys' Project Sunrise, read our sister publication AndNowUKnow’s report, here.