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    Sobeys Building New DC in Ontario; Plans Job Cuts

    STELLARTON, N.S. -- Sobeys, Inc. said yesterday it would build a new grocery distribution center in Vaughan, Ont., a move likely to result in layoffs at its other facilities in the province.

    STELLARTON, N.S. -- Sobeys, Inc. said yesterday it would build a new grocery distribution center in Vaughan, Ont., a move likely to result in layoffs at its other facilities in the province.

    According to a company statement, "The new facility will significantly increase the company's warehouse and distribution capacity while reducing overall distribution costs and improving service to its store network and customers."

    As far as the impact that the Vaughn DC will have on Sobeys' existing facilities in Milton and Whitby, Ont., the grocer said that it "expects a significant number of positions will be eliminated at [the] Milton and Whitby distribution centers when the new facility becomes fully operational in 2009."

    Sobeys owns or franchises over 1,300 stores in all 10 Canadian provinces under such banners as Sobeys, IGA, Foodland and Price Chopper food stores, and Lawtons Drug Stores.

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