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Sobeys shakes up grocery sector by going 24 hours

The jury is still out on a 24-hour experiment undertaken by Sobeys. The company is keeping several of its stores open 24 hours as of July 2. This includes the St. Albert location.
Sobeys in St. Albert is open 24 hours, a new experiment the company is conducting at several locations in the region.
Sobeys in St. Albert is open 24 hours, a new experiment the company is conducting at several locations in the region.

The jury is still out on a 24-hour experiment undertaken by Sobeys.

The company is keeping several of its stores open 24 hours as of July 2. This includes the St. Albert location.

“It started out very slowly but it’s gathering steam and we’re surprised by the results up to now,” said store manager Darren Dunlop.

He’s been surprised to learn how many businesses in town have shift workers. His overnight shift has attracted customers from the fast food sector, law enforcement and health services.

“Nobody’s been hot or cold on it but I’m looking forward to feedback,” Dunlop said.

Sobeys extended its hours during the holiday season last year and found it significantly boosted business, said company spokesman Mike Lupien.

Sobeys then decided to test round-the-clock hours at two stores, one in Winnipeg and another in Millwoods.

“Ever since they’ve put them there, they’ve seen steady acceptance. The customer counts have been building over time,” Lupien said.

On July 2 Sobeys moved 25 of its 105 stores to the 24-hour format. In the Capital region, this included four stores in Edmonton, one in Fort Saskatchewan and one in St. Albert.

“This is a natural progression for our business,” Dunlop said. “Right now it’s technically like a testing the waters to see how things will go.”

In a highly competitive grocery market, store hours can be a tool to differentiate oneself from the competition, said University of Alberta marketing professor Adam Finn.

“One way to compete is to be open when your competitor is closed,” he said.

Being open 24 hours brings additional costs for labour and lighting, which have to be weighed against whatever extra revenue comes in during the wee hours, he said.

“They can stay open longer hours as a service so that people see them as very convenient. It may help them attract business at other times as well [but] it doesn’t make a lot of sense to be open if you’re losing money,” he said.

“In St. Albert, I think the main issues would be getting people who want to work those hours,” he added.

Lupien said the company has asked for volunteers at its 24-hour stores and found that many employees want the overnight shifts. Those that go unclaimed are filled through advertising for new positions.

The night crew in St. Albert are all new employees, Dunlop said.

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