Alberta Court bans loyalty rewards on prescription purchases

On September 22, Alberta’s Court of Appeal released its decision on pharmacies’ ability to issue loyalty rewards to customers purchasing their prescriptions, banning all pharmacies throughout the province from offering a rewards programs, overturning the previous ruling by the Alberta Court of Queen’s Bench. Sobeys Inc. initially applied for judicial review of the proposed incentive ban by the Alberta College of Pharmacist in 2014, and the matter has been before the courts.

This is a ruling that affects all banners across Alberta, and, as it’s our goal to provide the best value and experience for our shoppers, we are obviously disappointed with the outcome.

“In addition to the professional services and trusted advice provided by Safeway, Sobeys and IGA pharmacists, we believe that we contribute to better patient care by offering rewards that help increase loyalty, adherence and ultimately improved health outcomes. While this ruling has now taken away loyalty rewards from all Albertans, our pharmacists will continue to offer trusted professional advice and the best possible care to our patients,” said Jedd Wood, Vice President and General Manager of Sobeys National Pharmacy Group.

We encourage all our Safeway employees to continue their work in building stronger connections with customers and providing great service in store. As this decision comes into effect immediately, please inform customers with questions that:

  • The ruling is province-wide, affecting all pharmacies
  • AIR MILES can still be earned on groceries, health and beauty products and all non-prescription medications
  • We still have a team of world-class pharmacists providing the same great level of service, advice and care as they always have

Our goal continues to be regaining our place as one of Western Canada’s leading grocery stores — a place that can provide good, stable jobs for thousands. And we’ll do this by ensuring our stores are simply best place for our customers to shop.

Financial Update For Employees

Safeway employees,

Last week, our CEO Michael Medline announced this year’s first quarter financial results for Empire Company Limited, the company that owns Sobeys and Safeway.

While the results are positive, there is much more work that we need to do. The grocery industry is tough, competition is growing and we aren’t even close to where we need to be in the Safeway brand if we are to be successful.

On the business side, we’re focused on Project Sunrise. This is about cutting costs and realigning our business so we can put ourselves in a leadership position once again. To put it simply, this is about making sure our back-stage structures and staff are better organized and equipped to support our stores, making it simpler for us to do business and easier for you to do your jobs. We still have a long way to go and we know change isn’t easy, but we will see it through.

For Safeway, this means we must continue to tackle our challenges. Even with the changes we’re making through Project Sunrise, we still face some of the highest costs in the industry. This must change!

We want Safeway to regain its place as one of the top grocery stores in Western Canada. We want customers to think of Safeway first when they choose where to shop. In order to do this, we must get our costs under control.

Project Sunrise is one piece of this puzzle, as we continue working at store level to improve our bottom line, all with the goal of building a successful Safeway with good stable jobs for the future.

Thanks for your hard work and dedication. Only by working together can we make Safeway a leader again.

 

Jason Potter

Executive Vice President, Operations