retail news in context, analysis with attitude

It is reported this morning that Canadian retailer Sobey’s has agreed to supply Grocery Gateway, the Canadian e-grocer, with national brand items and private label products.

The deal, according to Grocery Gateway executives, allows them to increase the online grocery selection by a third, to more than 10,000 SKUs. It also will allow the e-grocery to reduce costs by using Sobey’s buying infrastructure.

Sobey’s, on the other hand, gets access to an e-grocery operation that seems to be gaining momentum and popularity in the markets it serves.
KC's View:
Our natural cynicism (or is it optimism?) makes us wonder if this deal suggests the possibility of a more permanent pairing down the road, in the form of a merger/acquisition of the two companies.