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

Heavy snowfall closes Mount Washington for the day

Road to ski resort deemed unsafe, “high avalanche danger”

Alberni Valley Community Foundation seeks grant recipients

The Alberni Valley Community Foundation is accepting applications for grants to be… Continue reading

BCHL: Bulldogs beat Cowichan in double OT

Teams are 1–1 in three-game home-and-home stand; play in Cowichan Jan. 20

Port Alberni city council to ‘stay on course’ for five-year budget plan

Next budget meeting is scheduled for Monday, Jan. 29 at 6 p.m

Alberni businesses nominated for Island excellence

Coulson Ice Blast, Port Posh Wash, the Blue Marlin Inn and Totem… Continue reading

Floods, power lines down on Bamfield Road

Power outage affecting more than 400 customers

Philadelphia Eagles headed to Super Bowl

After routing the Minnesota Vikings 38-7, they will face Tom Brady and the New England Patriots

VIDEO: Dramatic video shows return of rescued B.C. snowboarders

Two snowboarders were rescued near Rossland, B.C. on Sunday after being lost overnight.

Tom Brady leads Patriots back to Super Bowl, top Jaguars 24-20

New England to face winner of Sunday night’s game between Minnesota and Philadelphia on Feb. 4

UPDATE: Ferries sailing again after stormy weather caused cancellations

B.C. Ferries cancelled numerous sailings around Vancouver Island today, Jan. 21

Homes, roads flooded in Whiskey Creek following downpour

Crews aid flooded homeowners while roads near Hwy 4 closed Sunday morning

Vessel washed ashore in Campbell River during last night’s storm

A vessel appears to have gotten loose and washed to shore on… Continue reading

Liberals quietly tap experts to write new paternity leave rules

Ideas include creating an entirely new leave benefit similar to one that exists in Quebec

Insurers say Canadian weather getting hotter, wetter and weirder

Average number of days with heavy rain or snow across Canada has been outside norm since spring 2013

Most Read