Sobeys closure 'catastrophic,' says Perth-Andover mayor

The Mayor of Perth-Andover, where one of fiveSobeys and Foodland stores are closing in New Brunswick, says the closure can only mean bad news for the community.

An internal review by the grocery store chain has decided the closure of Sobeys stores inSt. Stephen along with Foodland stores in Edmundston, Nashwaaksis, Perth-Andover, Tracadie-Sheila and Amherst, N.S.

The stores will close at 6 p.m. on July 5.

It's catastrophic for our village.Perth-AndoverMayor Terrence Ritchie

"It's catastrophic for our village," said Perth-Andover Mayor TerrenceRitchie. He said when a supermarket closes in a community like theirs with only two supermarkets, the other store doesn't always pick up all the business.

"The whole community actually loses. People are just going to go to nearby communities," he said.

Sue Newman of St. Stephen saidshe would only shop atSobeys for a deal. With an Atlantic Superstore just across the road she was free to shop around for the best prices.

"It`s always better when there are two stores competing in a town. So I`m a little worried," she said.

Stores 'consistently underperforming'

Shauna Selig, the manager of communications for Sobeys Atlantic, said the decision to close those stores was announced at staff meetings on Tuesday evening.

We reviewed our network stores as we do on a market-by-market basis, she said.

We made a decision to close six stores in the Atlantic region that have been consistently underperforming.

Selig would not say how many employees will be affected by the closure of the six stores.

However, she said the grocery chain is trying to find roles for some of the individuals in other stores.

We are treating all of our employees with respect and we have made efforts to find some comparable roles in the network, and all the others have been offered respectful severance compensation, she said.

The closures in the Maritimes are a part of a larger restructuring that is being rolled out across the country.

NovaScotia-basedEmpire Co. Ltd., the parent company of Sobeys, saysit's closing about 50underperforming Sobeysto improve its net earnings. It says about60 per cent of the affected stores are in Western Canada.

Selig said these decisions are a part of the companys long-term business strategy. In October 2013, the Competition Bureau of Canada ordered Sobeys to sell 23 stores in Western Canada before it would approve its $5.8-billion purchase of Safeway Canada.

We did take the opportunity to review and evaluate the store network," Selig said. This reviewis part of the regular course of business. It would have happened regardless of the acquisition of Safeway.