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

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

BCHL: Speedy left winger commits to Bulldogs

Forward Ethan Jang will be suiting up for the 2018-19 season

Rollin Art Centre open now

Make sure to renew your Community Arts Council membership

BCHL: Bulldogs take the ice after trade deadline

Alberni team picked up one loss, one win with new roster

WATCH: Giant waves smash Ucluelet’s Amphitrite Point

Folks made their way to Ucluelet’s Amphitrite Point Lighthouse on Thursday, Jan.… Continue reading

Ice-cream-eating bear draws controversy

An Alberta Wildlife Park posted a video this week of one of their bears going through a Dairy Queen drive-through

Fernie, RCMP go to court over city log books in fatal ammonia leak probe

Log books center stage in clashing of investigations between the city and RCMP

Renowned Comox Valley sasquatch researcher passes away

A renowned biologist and leading Canadian sasquatch researcher who called the Comox… Continue reading

B.C.’s biggest pot plant planned for Oliver

Co-founder Tony Holler said the 700,000 sq. ft. facility would produce 100,000 kg of pot per year

High-end whisky seized in B.C. bar raids

Raids end in seizures at Victoria, Nanaimo and Vancouver whisky joints

Train derails in Northwest B.C.

CN reports no injuries or dangerous goods involved after coal train derailment.

Double-doubles and demonstrations: Employees rally outside Tim Hortons

Protests held in response to Ontario franchise owners cutting employee benefits and breaks

Las Vegas shooter acted alone, exact motive still undetermined: Sheriff

Stephen Paddock was behind the gunfire that killed 58 people including two Canadians

Most Read