© Copyright 2013 Kantar Retail Figure 1: Store Locations Across Canada Sobeys Locations Safeway Locations Source: Company reports and presentations, Kantar Retail analysis * *Includes 10 liquor stores Note: Sobeys counts includes retail petro stations

© Copyright 2013 Kantar Retail Figure 2: Shopper Ratings of Store Attributes Among Canada Safeway and Sobeys shoppers 2 Source: TNS Canada – April 2013, Kantar Retail analysis Note: asked in relation to grocery, HBC, and consumables

© Copyright 2013 Kantar Retail Source: Kantar Retail analysis Sobeys PositionSupplier Implication Sobeys will be the second biggest retailer in terms of sales, with a dramatically increased presence in the West Anticipate the retailer to leverage its increased bargaining clout, driving need for more resources Expect conventional grocers like Metro to seek added promotional support, as Sobeys new scale will help enable further price position investments Loyalty card reach will expand, through alignment with the Club card and potentially through Safeways just for U tools Leverage your insights to put their shopper data in context, particularly in Alberta Watch for added promotional investment pressures as the retailer looks to develop penetration and engagement with its programs Private label expertise and scale will accelerate, as Safeway also has a sophisticated program Identify your brands positioning versus Compliments and O Organics, anticipating where the retailer may look to insert its own labels Consider cross-promotions with non-competing private labels as Sobeys adds labels at Safeway Implications for Sobeys Suppliers Considerations in light of Canada Safeway acquisition