Empire’s latest results put a spotlight on a trend Canadian shoppers can already feel in the aisles: discount grocery is getting more attention, more investment and more floor space. In its June 18 fourth-quarter materials, the Sobeys parent reported quarterly sales of $7.807 billion, up 2.2% from a year earlier, while same-store food sales rose 1.5%. More important for everyday shoppers, Empire said FreshCo had 161 stores as of June 17, with 53 in Western Canada and 108 in Ontario, and that it expects to open about 15 more FreshCo stores across Western Canada, Ontario and Atlantic Canada in fiscal 2027. That does not automatically mean cheaper carts everywhere next week, but it is a useful signal: grocers are still competing hard for budget-focused trips.
The timing matters because the broader retail picture is uneven. Statistics Canada reported that total retail sales rose 0.5% in April to $73.0 billion, but core retail sales, which exclude gas stations and vehicle dealers, fell 0.7%. Food and beverage retailers were one of the weak spots, down 2.0% in April. In plain language, shoppers may still be buying groceries, but they are being choosier about where, when and how much they buy. If a household is trimming the basket, delaying a stock-up, switching banners or splitting a trip between a discount store and a full-service store, those choices can show up in the sales numbers.
Empire’s plan also shows that the discount race is not just about opening doors. The company’s presentation says fiscal 2027 capital spending is expected to be about $850 million, with roughly half going to renovations and new store expansion, including about 1.5% growth in store footprint from new stores. It also says the company expects to renovate about 20% to 25% of its network between fiscal 2027 and fiscal 2029. For shoppers, renovations can be a mixed bag: better layouts, refreshed fresh departments and more prepared-food options may help, but a nicer store does not guarantee the best price. The practical move is to treat any newly renovated or newly opened store as a comparison opportunity, not as an automatic home base.
This is also happening against a grocery-price backdrop that is still uncomfortable. Canada’s Food Price Report 2026, led by Dalhousie University’s Agri-Food Analytics Lab and partner universities, forecasts overall food prices to rise 4% to 6% this year. It estimates a family of four could spend $17,571.79 on food in 2026, up as much as $994.63 from last year. The report also notes that price remains the main driver of Canadian food purchases, even as shoppers show more interest in domestic products and retailers highlight Canadian labels. That is why the discount-banner expansion is newsworthy: it speaks directly to where household attention already is.
The useful takeaway is not “shop only at one chain.” It is to build a two-store grocery routine that is easy enough to repeat. Use a discount banner for shelf-stable basics, frozen items, private-label pantry goods and advertised meat or produce specials. Use a full-service store when it genuinely saves time, has a specific item you need, or offers a loyalty redemption that beats the shelf price elsewhere. If a new FreshCo, Food Basics, No Frills or other discount location opens nearby, compare a short list of 10 items you buy every week: milk, eggs, bread, chicken, ground beef or a meat alternative, apples or bananas, tomatoes, pasta, rice and coffee. Keep the list stable for a month so you can see real differences instead of guessing from one flyer.
Flyers still matter, but the best savings usually come from matching the flyer to your meal plan instead of building a meal plan around impulse deals. With Canada Day, cottage weekends and barbecue season ahead, watch the items that can quietly inflate a cart: drinks, snack multipacks, condiments, buns, prepared salads and single-serve treats. Discount stores can be strong on basics, but seasonal displays are still designed to increase basket size. A simple guardrail is to pick one “stock-up” category per trip, such as freezer proteins or lunch snacks, and leave the rest for next week unless the price is clearly better than your usual benchmark.
Online ordering deserves the same price check. Statistics Canada said seasonally adjusted retail e-commerce sales fell 1.2% in April to $5.1 billion, accounting for 7.0% of total retail trade. Delivery and pickup can save time, reduce impulse buys and make price comparisons easier, but fees, substitutions and minimum order thresholds can eat into the benefit. If you use an app, compare the delivered total against the in-store shelf price for your core basket every few weeks. FreshCo’s expansion plans are one more sign that value shopping is becoming a central battleground in Canadian grocery, but shoppers still need to do the boring work that protects the budget: keep a benchmark list, compare unit prices, use loyalty points only when they improve the final price, and avoid turning a deal-hunting trip into a bigger cart than planned.
Source trail: - Empire Company Limited, “Empire Reports EPS of $0.94 in the Fourth Quarter and Fiscal 2026 Results” (PDF): https://www.empireco.ca/uploads/2026/06/Empire-Consolidated-Q4-F26-News-Release-.pdf?id=axx12z - Empire Company Limited, “Q4 F26 Earnings Presentation” (PDF): https://www.empireco.ca/uploads/2026/06/Q4-F26-EMP.A-Earnings-Presentation.pdf?id=axx12z - Statistics Canada, “Retail trade, April 2026”: https://www150.statcan.gc.ca/n1/daily-quotidien/260619/dq260619a-eng.htm - Dalhousie University Agri-Food Analytics Lab, “Canada’s Food Price Report 2026”: https://www.dal.ca/sites/agri-food/research/canada-s-food-price-report-2026.html