Sobeys Pauses Online Grocery Expansion Amid Weakening Prospects

Empire Co., Canada’s third-largest grocery store chain, pulled back on the expansion of its online business because of the unit’s mounting losses and dimming prospects for selling food over the web.

The company, which runs Sobeys and other chains, indefinitely delayed the opening of an online fulfillment center in Vancouver. That came as growth slowed in online grocery in Canada as consumers who’ve been hit by inflation opt for shopping in stores to avoid delivery fees.

“We’re losing more money than we had initially estimated, and this is actually masking the strength of our brick-and-mortar business,” Empire Chief Executive ...