Sobeys opens new discount food chain

Wed May 12, 2010 7:56am EDT
 
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TORONTO (Reuters) - Canadian grocer Empire Co said on Wednesday that its Sobeys Inc division planned to open a new chain of discount food stores in the Toronto area as it ramps up the discount food fight in the area.

Canada's No. 2 grocer said the new chain, to be launched under the FreshCo banner, would feature fresh produce and meat "at the lowest price."

The eight stores, to be located in the Brampton and Mississauga bedroom communities on the western fringes of Toronto, will also feature specialty ethnic products tailored to that area.

The move comes as Loblaw Co, the country's biggest grocery store chain, has opened a number of its discount No-Frills stores over the past few years and Walmart Canada continues to cut prices on staple products.

($1=$1.02 Canadian)

(Reporting by Scott Anderson; Editing by Lisa Von Ahn)