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

UPDATE w/ VIDEO: Chilliwack homeless camp given eviction notice

Inside the camp that will be removed by Monday RCMP according to trespass notice

Missing Chilliwack teen found ‘safe and sound’

Boy found just as mother was organizing search

Chilliwack Rotary club reports $4,200 theft at storage shed

Rotary Train Shed adjacent to homeless camp on reserve land broken into Oct. 15

Rainfall warning issued across Lower Mainland into the weekend

50 to 70 mm of rain expected to fall starting overnight Friday and into Sunday morning

UPDATE: Chilliwack mother issues plea for info on missing son

Informal search party organized for 13-year-old boy not seen since Thursday

VIDEO: ‘Lyle the singing pig’ searching for home

SPCA say the pig is ‘not opera-ready’

Man in custody linked police search near Salmon Arm

Police have not connected arrest to search at Salmon River Road property

B.C. search groups mobilize for missing mushroom picker

Searchers from across the province look for Frances Brown who has been missing since Oct. 14.

Search for missing B.C. man a race against winter weather

David Jeff of Williams Lake was last seen in Kamloops during the chaotic wildfire evacuations

Man steals police car, goes for a ‘slow’ ride

Mission RCMP say the motive of the theft is unknown

Dodgers punch ticket to World Series

This will be the first time the Los Angles Dodgers have made it to the World Series since 1988.

Surf group winning the war on plastic bags

The Tofino Co-op will no longer provide plastic bags, following in the footsteps of the Ucluelet location that already made the change earlier this year.

All three victims identified in Fernie arena ammonia leak

Wayne Hornquist and Lloyd Smith were from Fernie and Jason Podloski from Turner Valley, Alta

VIDEO: Body discovered at scene of dumpster fire behind Langley City mall

Area behind furniture store taped off after firefighters find deceased woman while battling blaze

Most Read