Food retail and real estate company Empire will continue investing in new stores and will renovate about 20 per cent to 25 per cent of its store network over the next three years.

For FY24, Empire is estimated to spend about $775 million in capital, with about half of it earmarked for renovations and new store expansion and about $50 million for sustainability initiatives such as refrigeration system upgrades, heating, ventilation and air conditioning system upgrades and other energy efficiency strategies.

In addition, the company intends to purchase about $400 million in Class A shares under a normal-course issuer bid during FY24.

Empire, the company behind supermarket chain Sobeys, said it will keep prioritizing program enhancement for its own brands through increased distribution, shelf placement and product innovation.

Its e-commerce platform will continue to expand with online grocery home delivery service Voilà and a loyalty scheme through Scene+, which Empire co-owns with Scotiabank and Cineplex.

The announcement comes as the company reported a 39.2 per cent annual jump in net earnings to $261 million and a 1.74 per cent rise in revenue to $8.08 billion in the first quarter of FY24. Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 21.72 per cent to $723 million.

Gross profit inched 4.88 per cent higher to $2.07 billion while gross margin improved to 25.7 per cent.

Empire said that lower fuel sales due to elevated fuel prices in FY23 and one less week of fuel sales after the Western Canada Fuel Sale on July 30, 2023, offset its sales during the three months to August 5 this year.

“FY24 is off to a good start, supported by stronger top-line performance in our full-service banners, continued double-digit sales growth in our discount banner and solid control over our retail margins,” said Michael Medline, president and CEO at Empire.