Frustration mounts over 'unredeemable' e-gift cards at Sobeys

Grocery gift card issues sparks frustration An alleged IT system issue at Sobeys has prevented people in need from using donated gift cards. Rich Garton explains.

To mark the season of giving, the Automotive Parts Manufacturers Association cashed in some Scene loyalty points to purchase e-gift cards for Sobeys to give out to people in need.

“It's a great program and it's a good way to discreetly support people who have a need right now,” said Flavio Volpe, the president of the Automotive Parts Manufacturers’ Association (APMA).

The APMA redeemed Scene points for $700 worth of e-gift cards.

But when the recipients went to use them at checkout they didn’t work.

One of the card recipients called Volpe and relayed the problem, telling Volpe he was told at the store that the system was down related to an IT issue the grocery chain was hit with the month before.

“If they have a problem with the system across the country. How many other people are relying on this method for food right now?” asked Volpe, who has been asking questions to Sobeys publicly over Twitter all week. “We engaged the company. You know, it's been five or six days of back and forth. I really didn't get a straight answer.”

Up until Thursday, Empire Co — Sobeys’ parent company — has been tight-lipped about an “IT systems issue” that began in early November, which disrupted the company’s software.

But Halifax-based food distribution professor Sylvain Charlebois says customers are noticing.

“Nobody appears to be able to use Scene at all,” said Charlebois, who is a professor at Dalhousie University. “So Sobeys has been operating without a loyalty program for well over a month now.”

The company broke its silence Thursday, estimating the undisclosed cyber-attack will cost it about $25 million, but the company wouldn’t disclose if it was ransomware or if it paid up to end the problem.

In a statement to CTV News, Sobeys public affairs lead Sarah Dawson said there are no issues redeeming gift cards nor is it related to the widespread IT systems issue. She adds the issue has since been resolved with the affected customers.

“We understand how important gift cards are to customers and their families at this time of year and regret these unfortunate but isolated incidents,” Dawson said in a statement.

Charlebois says loyalty programs are the next battleground for grocery giants competing for customers in a tight market, currently being affected by severe inflationary pressures.

“And that's why this is the one tool that Sobeys needs desperately, but it doesn't appear to have it right now,” Charlebois said.

Volpe says the APMA will still find a way to get resources to people in need, but not at Sobeys.

“We certainly are not going to be buying more cards to give to people to hope that they get through the gate,” Volpe said. “You know, we'll just find a different way to do it.”