Team,

First, I want to thank you all for your warm welcome. I’m eager to continue my transition with the Alberta team and begin working more closely with you. I’m also thrilled to reconnect with so many that I’ve worked with over the past several decades and I look forward to getting to know those who I haven’t met yet.

That said, I want to share an update with you following the release of Empire Company Ltd.’s Q4 and full year results that were distributed on June 27. Overall, the Company is reporting strong progress with improved sales and earnings, which is positive growth compared to our results from just two years ago.

As part of Project Sunrise, the Company has implemented many significant changes across our store, office and distribution centre networks. Most notably, Project Sunrise included the significant reduction of back office employees by 800 since 2017, as well as various cost savings initiatives, such as Category Resets. Although many of these changes have been difficult for teams across the business, they have been necessary. These changes have helped in better positioning the business for profitable and competitive long term success.

While the results reported nationally were strong, there’s still a lot of important work ahead of us here in Alberta. The grocery industry continues to evolve and become more competitive, and our Alberta Safeway customers have more shopping choices than ever before. Many of our stores continue to be unprofitable despite the best efforts of our hardworking teams. Through the year ahead, we plan to significantly invest in our Alberta store network with exciting refreshed in-store designs, new investments in the Safeway brand, and of course, by containing to proudly serve the communities where we work and live.

We’ll continue to share updates with you as this exciting work progresses. As always, thank you for your continued hard work and focus on providing industry-leading store standards and exceptional customer service. Together, we are a family nurturing families.

Scott Chollak

Vice President Operations, Alberta