IGA and IGA Extra are the two major banners of Sobeys Québec in terms of supermarket power.
Of American origin, IGA is a well-known brand currently present in thirty countries and rooted in Quebec for decades. It was founded in May 1926 by a hundred independent retailers in the state of New York and Connecticut who have developed a unique concept, marketing and access to a more efficient supply chain (few know also that IGA stands for Independent Grocers Alliance). After a few years, the company began to market its own brand of canned products. Today, the head office of the banner resides in Chicago.
In Quebec, on June 1, 1953, Hudon & Orsali obtained from IGA Chicago the exclusivity of the IGA banner for several regions of Quebec. This association came at a time when independent grocers feel the need to regroup in order to consolidate their purchasing power and marketing in the face of the arrival of major corporate chains. IGA then became the first voluntary grouping. In November 1953, IGA already had more than 50 grocers under its banner
Today in Canada (excluding British Columbia), IGA is a trademark owned by Sobeys , acquired as part of its acquisition of the Oshawa Group Ltd., with stores mostly based in Quebec. IGA‘s operations in Atlantic Canada were sold to Loblaw and restructured under its existing brands. In Ontario, Sobeys converted the IGA stores to another banner, Foodland. However, many IGA stores are still active in Manitoba, Saskatchewan and Alberta.
At the beginning of the new millennium, the IGA Extra banner was born. It offers a boutique environment comprising of a variety of products and superior customer service in larger floor areas than IGA stores. The appearance of the IGA Extra banner in Quebec allowed Sobeys to raise the bar of its supermarket shopping experience.
The IGA shopping environment is particularly well-cared for and the banner places great emphasis on educating its customers to eat well (with the following slogan: The joy of eating better), hence the hiring in Quebec of three well-known foodie personalities.
With more than 250 IGA and IGA Extra supermarkets, the banner is the undisputed leader in Quebec in terms of supermarket market share.
Type of Franchise
Like Metro and Metro Plus, IGA supermarkets are managed by independent retailers, a model that favors the consumer according to the company. Sobeys, on its website, explains that “the independent retailer owns its store, has a supply contract with a distributor and responsibilities are divided between the two partners. The distributor is often responsible for negotiating with suppliers and for advertising, among other things, while the retailer is responsible for the day-to-day management of the store, such as purchasing and personnel management, to name just two. He can then better adapt its food offers to local tastes and needs while enjoying the support of a large player. “
Banner Profile
| Names: | IGA and IGA Extra |
|---|---|
| Ranking (banners): | IGA: 7th of 63 IGA Extra: 10th of 63 |
| Number of stores: | 156 IGA 106 IGA Extra |
| Franchisor: | Sobeys Québec |
| Description: | Supermarket banners |
| Business Model: | Type A) Company-operated store / employee-operated (5% of the stores) Type C) Store franchisee (95% of the stores) |
| Head Office: | Montreal |
| Website: | IGA and IGA Extra |
| Facebook: | IGA Vive la Bouffe |