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Sobeys buys Canada Safeway

No word yet if local stores will undergo a name/brand change.

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.

There are three Safeways in the surrounding area, one each in Abbotsford, Mission and Aldergrove.

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.

The planned purchase is subject to Competition Bureau approval.