A typical Sobeys grocery store. The chain is based in Nova Scotia but is buying Canada Safeway's outlets

Sobeys to buy up Safeway grocery stores

East coast grocer hasn't decided if it will keep the Safeway name or reflag stores

Canada Safeway stores in B.C. have a new owner.

Nova Scotia-based supermarket firm Sobeys, itself owned by Empire Company, is buying the Safeway chain’s 213 Canadian stores for $5.8 billion.

The deal with Safeway Inc. also includes numerous in-store pharmacies, gas stations, liquor stores and other distribution or manufacturing facilities across western Canada.

Sobeys hasn’t yet decided if it will keep the Safeway name or reflag the stores under one of its brands.

Sobeys already has a presence in B.C. through its IGA and Thrifty Foods brands.

Adding Safeway’s 75 B.C. stores will give Sobeys 107 outlets in this province. That compares to 101 for Overwaitea Food Group, 84 for Loblaws, 25 Walmarts and 14 Costcos.

The change of ownership may also mean changing product lines for customers who continue to frequent the stores, as well as possibly different loyalty card systems.

Both Sobeys and Safeway offer Air Miles reward points but the new operators indicated they will move to eliminate separate loyalty programs.

Big supermarket chains face growing competition as other retailers add groceries to their shelves.

“This is a significant and historic event for Sobeys, which has been proudly serving Canadian food shoppers for 106 years,” Empire president Paul Sobey said.

He called the acquisition an “excellent strategic fit” that strengthens the chain presence in Western Canada, and leverages its existing assets to better compete.

Empire officials intend to sell off Safeway stores’ real estate holdings and lease the properties back.

The planned purchase is subject to Competition Bureau approval.

Not everyone’s likes the deal.

Some shoppers posting on Canada Safeway’s Facebook page were critical of Sobeys, while others on Twitter doubt the takeout of a major grocery player will benefit consumers.

“Get ready for higher prices and less competition,” tweeted Vancouver’s Pete Quily.

Just Posted

Open house opens access for those suffering from vision loss

Pat Chicquen understands how isolating losing vision can be, which is why… Continue reading

Valley SPCA overwhelmed with 45 cats taken from local property

Many of the cats have never been around humans, or have never been touched or handled.

BIG READ: The two sides of the Strait of Georgia roe herring fishery

The case for the Strait of Georgia roe herring fishery Comox fisherman,… Continue reading

Applications open for record bursary, scholarship funding at North Island College

Current and future North Island College students can now apply for scholarships… Continue reading

Second Stage Players present laughter and love in We Are Family

Get your tickets early to see the Evergreen Club’s Second Stage Players’… Continue reading

VIDEO: Can you believe it? This B.C. hill pulls cars backwards up a slope

Sir Isaac Newton had clearly never been to this Vernon anomaly when he discovered gravity

Comox Valley Hospice Society finds new Ocean Front home

Comox Valley Hospice Society (CVHS) recently announced plans to construct a new… Continue reading

European, Canadian regulators to do own review of Boeing jet

Air Canada plans to remove the Boeing 737 Max from its schedule at least through July 1

Prime minister defends Liberal budget measures as sales effort gets underway

Conservatives under Andrew Scheer say it’s a spree funded by borrowing against the future

Mayor meets with B.C. health minister on homeless taxi transfers

Two homeless people were discharged from Surrey Memorial and sent to a Chilliwack shelter

B.C. lottery winner being sued by co-workers

They claim he owes them $200,000 each, in a lawsuit filed in B.C. Supreme Court in Vancouver

Teacher reprimanded for conduct towards special needs student

Alan Stephen Berry told vice principal he did not have time to use positive strategies

Water bottling debate continues

Merville resident says plenty of water in Aquifer 408

‘Full worm super moon’ to illuminate B.C. skies on first day of spring

Spring has sprung, a moon named in honour of thawing soil marks final super moon until 2020

Most Read