SOBEYS TO BUILD AUTOMATED DISTRIBUTION CENTRE IN TERREBONNE, QUÉBEC

State of the art facility first of its kind in Québec food industry

MONTREAL, Jan. 27 /CNW Telbec/ - Sobeys Inc. today announced it will begin construction of a new automated grocery distribution centre in the Montréal suburb of Terrebonne, QC. The distribution centre, scheduled to open in early 2013, will make use of the same state-of-the-art technology used in the company's Vaughan, ON facility which opened in 2009.

The 470,000 sq. ft. facility will consolidate all of the company's dry grocery distribution for the province of Quebec, significantly increasing Sobeys warehouse and distribution capacity while reducing overall distribution costs and improving service to its store network and customers.

"We are taking advantage of the leading-edge technology that is transforming the food business in Europe and in North America, and that will become a must in our industry," said Marc Poulin, President Operations, Sobeys Québec. "This significant capital investment clearly demonstrates our intention to support a strong food distribution network and infrastructure in the Québec market."

The new facility will integrate WITRON Logistik Corp. technology which includes an automated picking and assembly system for improved product selection accuracy and the ability to customize store deliveries according to the unique store layout of each of the company's retailers.

As part of this consolidation, Sobeys has also announced that it will close its Rivière-du-Loup distribution centre and convert its Rouyn-Noranda facility to a cross-docking platform. The company will also refocus the mandates of its Montréal-North, Boucherville and Québec City distribution centres and is currently evaluating the impact to employees of the changes at those facilities. Implementation of these changes is planned for early 2013. Announcing the decision two years in advance demonstrates the company's intention to ensure a smooth transition for its employees, retailers and suppliers.

The realignment of Sobeys Québec distribution network aims to improve service at store level and provide customers with a value- added shopping experience unique to the Quebéc food market. Those interested in learning more about the technology that will used in this new distribution centre can watch the video titled Delivering the Future at: http://www.sobeyscorporate.com/en/video.aspx.

About Sobeys Inc.
Sobeys Inc. is a leading national grocery retailer and food distributor headquartered in Stellarton, Nova Scotia. A wholly-owned subsidiary of Empire Company Limited (TSX:EMP.A), Sobeys owns or franchises more than 1,300 stores in all 10 provinces under retail banners that include Sobeys, IGA, Foodland, FreshCo, Price Chopper and Thrifty Foods, as well as  Lawtons Drug Stores. Sobeys Inc. is committed to providing the most worthwhile experience for its customers, employees, franchisees, suppliers and shareholders. More information on Sobeys Inc. can be found at www.sobeyscorporate.com.

SOURCE Sobeys Québec

For further information:

Andrew Walker
Vice President, Communications & Corporate Affairs
Sobeys Inc.
(905) 214-6711
andrew.walker@sobeys.com

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