Empire (EMP-A) announced the acquisition of Mayrand, a small Quebec-based discount grocer that’s immaterial in dollar terms - but could represent a change in strategy…

… given it had no prior category exposure in the province. With Empire’s footprint sitting well below Metro (MRU) and Loblaw (L) on a relative basis, there’s a lot of runway to grow…

… as discount stores continue to take share from conventional grocery, which has driven a wedge between the company’s valuation versus peers…

… alongside strength in pharmacy, another category it’s less exposed to.