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STELLARTON, N.S. -- Sobeys here said Friday it was selling 11 Ontario Cash and Carry stores to the Mississauga, Ont.-based SKOR Food Group, Inc. Sobeys will close its three remaining Cash and Carry outlets in Ontario and Quebec.
The company said it sold and closed the stores so it could focus on its core food retailing and distribution business.
The Cash and Carry locations contributed about CAN $210 million (US $179.8 million) in sales of tobacco and other products yearly. The disposals of these noncore assets will have a net CAN $1.5 million (US $1.3 million) pretax negative impact on Sobeys fiscal 2006 earnings, but will contribute to an improvement in annual earnings, according to the company.
Sobeys owns or franchises over 1,300 stores in all 10 Canadian provinces under such retail banners as Sobeys, IGA extra, IGA, and Price Chopper.