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Thread: Canada Safeway sold to Sobeys

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    Default Canada Safeway sold to Sobeys

    [url]http://www.edmontonjournal.com/business/Canadian+Press+NewsAlert+Empire+Safeway+Canada+bil lion/8516405/story.html[/url

    TORONTO - Supermarket chain operator Empire Company Ltd. (TSX:EMP.A) plans to acquire the Canadian assets of grocer Safeway for $5.8 billion.
    Last edited by Barry N; 12-06-2013 at 03:16 PM.
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    maybe competition bureau has something to say?
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    Wow, that's a huge deal, wonder what that means going forward for customers.

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    Quote Originally Posted by bpeters View Post
    maybe competition bureau has something to say?
    Doubtful, there's still Save-on-Foods, Superstore/Loblaws, Wal-mart, Family Foods, Co-Op, independent grocers, etc. Plus, this is a Canadian company actually buying out an American subsidiary, which almost never happens.

    Questions I have:
    - will the Safeway's all be labelled as Sobeys?
    - will Sobey's use their existing suppliers for the stores, or switch to some of Safeways'? (I've found the produce at Safeway's is usually better then Sobey's)
    - Where two stores are in close proximity (UofA Sobey's and 109th and Whyte Safeway, for example), will one of the stores close?
    - Does the purchase mean the firing and rehiring of Safeway personnel to bypass union agreements?

    I guess only time will tell.

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    10-15 years ago it likely would of been Safeway buying Sobey's. Should be interesting to see how this all pans out.

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    Wonder if Safeway's prices will come down.

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    Maybe it'll work like Best Buy owning Future Shop. You'll see their stores close by, and they "compete" with each other.
    They're going to park their car over there. You're going to park your car over here. Get it?

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    Quote Originally Posted by Kitlope View Post
    Wonder if Safeway's prices will come down.
    Down to Sobeys? You're kidding right?

    I'm a happy Sobeys customer because (a) they're in my building and (b) they have home cooked meals. But I have no illusions about their prices. On the other hand, I'm not that price sensitive.

    Eve

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    will safeway head office still stay in Calgary?

    i understand Sobeys has a Western Canadian distribution centre here in Edmonton
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    Don't go to either....Safeway always seemed the most expensive.

    Plus I find the the grocery stuff at Wal-Mart are actually getting better.

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    It will be interesting to see what happens if this goes ahead. Remember the old Safeway that's on 118 Ave and 66th. Street that Safeway would not let any other store open there. Wonder if that will get resolved and something done with the empty store. From what I heard Safeway used to be just about the only grocery store in town at one time.
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    Quote Originally Posted by Bill View Post
    will safeway head office still stay in Calgary?

    i understand Sobeys has a Western Canadian distribution centre here in Edmonton
    Sobeys Western Canada office is here - with Executive. Eeconomic Development Edmonton should get on this courting an expansion stat.

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    According to CFRN this deal has been done and it's going to be finalized in the fall.
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    Well they'd better not downgrade Safeway's cinnamon buns.
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    ^It's high flying cutting edge remarks and observances like those that can sink a deal
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    Quote Originally Posted by Gemini View Post
    According to CFRN this deal has been done and it's going to be finalized in the fall.
    Quote Originally Posted by EdmTrekker View Post
    Sobeys Western Canada office is here - with Executive. Eeconomic Development Edmonton should get on this courting an expansion stat.


    Absolutely they should.

    However, if past performance is any indication, EEDC will form a committee to study it until next spring and then issue a one page report basically plagiarizing Sobey's news release, regurgitating what everybody knew back in the fall.

    C'est la vie chez EEDC.


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    Hmm this is interesting. I cant see them just turning every Safeway into a Sobeys.
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    I don't like Sobeys, not at all.

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    Quote Originally Posted by Komrade View Post
    Hmm this is interesting. I cant see them just turning every Safeway into a Sobeys.
    Agreed. I imagine we'll see some Safeways closing; Century Park comes to mind, as the Safeway and Sobeys there are only a couple of blocks apart.

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    Is Safeway still all union? I don't beleive Sobeys is union??

    I'm sure going to miss those lovely Safeway strikes they had!!! NOT.

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    Safeway was always on the pricier side, but had much better quality stuff than Sobeys. My Sobeys shopping has been limited to the downtown one and I am consistently unimpressed when I have to go there. Save-on is much better.

    The inlaws live right close to the old IGA/ new Sobeys at 50th st and 106 ave and they say it's gone way down hill since Sobeys took over
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    The Jasper Ave Sobey's has been pretty consistently terrible since it's opened, in terms of selection, freshness, and so on. They just can't figure it out. They continually have nearly expired food on their shelves, you have to be extremely careful to not purchase something that's going to be rotten within a day. I don't know if they just don't have enough sales volume of those kinds of staples (dairy, fruit/veg, meat) to clear the shelves off fast enough or what, but it's consistently the case that you have to dig through the eggs or yogurt or meat to find something that you don't have to eat immediately.

    Check out service has improved a lot recently though, they generally seem to have 2-3 tills open during peak times instead of the 1-2 that they had before. So that's progress I guess.

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    I don't think the DT Sobeys is indicative of the experience one has in the larger suburban Sobeys.
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    Quote Originally Posted by JJMorrocco View Post
    Is Safeway still all union? I don't beleive Sobeys is union??

    I'm sure going to miss those lovely Safeway strikes they had!!! NOT.
    It appears that both Sobeys and Safeway employees both belong to the United Food and Commercial Workers union.

    Some additional details from the the Edmonton Journal:

    Quote Originally Posted by Edmonton Journal
    ...
    Empire said it expects to find cost synergies of about $200 million over three years by integrating the distribution, information technology and procurement divisions of both grocers.

    The company also said it will cut its administrative and marketing costs by combining management teams, but would not comment on whether layoffs are expected.

    “We have a need for great, talented people,” said Sobey. “There’s a great cultural fit in regards to the employee basis between the two organizations.”

    Marc Poulin, president and chief executive of Sobeys Inc., said the company is not sure whether it will be re-branding the Safeway stores.

    “It’s too early to tell, obviously, at this stage,” said Poulin.

    “We just completed the acquisition. We will do proper marketing and research to determine what will be the course on the bannering side.”

    ...

    Wayne Hanley, national president of UFCW Canada, which represents thousands of Canada Safeway and Sobeys workers, said the union has asked for talks with Sobeys to discuss the takeover.

    “While the purchase of Canada Safeway by Sobeys is a significant change in the Canadian food retail landscape, what has not changed are the collective agreements in place with both employers,” Hanley said.

    “We do expect Sobeys to live up to the labour commitments in place at Canada Safeway and have no reason to doubt they will.”
    ...

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    Top_Dawg doesn't go to the downtown Sobey's all that often so many of youz guyz would know more about it.

    He's noticed that they have very low staff turnover.

    It can be a month or more between visits and yet it seems like the same old mugs are still there, some from the beginning.

    This speaks well for any organization.



    Nevertheless, Top_Dawg still harbours a great degree of contempt towards them for having replaced Jasper Avenue's most cherished auberge.


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    One more thing to note is that the Namao Centre Sobeys is the only grocery store I know of in Edmonton that's open twenty-four hours. I could see Sobey's extending the hours on a few others; the Whyte Ave/109th Safeway comes to mind, as its already open until midnight.

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    in bc sobeys bought out thrifty foods a few years ago and continues to operate thrifty foods under that name with all the thrifty foods store brands, and they even expanded opening a number of thrifty foods stores in recent years

    i hope they will continue safeway as is in name and brand with its card programs, you could rack up air miles really quickly at safeway

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    Quote Originally Posted by bpeters View Post
    maybe competition bureau has something to say?
    More then likely, I'm guessing they will rule to approve the sale to Sobey's, their ruling on Telus buying out Mobilicity was based on lack of competition. We do seem to have enough competition in the supermarket area (Superstore, Sobeys/Safeway, Save On Foods, Walmart Supercenters).

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    The Sobeys I am familiar with is the one on Whyte and 112th. It seems to be a very successful place mostly because it is located in the middle of mobs of the sorts of people who appreciate a large deli type store. Students and hospital workers. The deli here is great because it has homecooked meals (protein, starch, veggie) which are different all the time ... just like Mom. Also they take their salad offerings seriously.

    They have the restaurant area which I have never figured out and I rarely see many people there, possibly because I'm an after-hours sort of person working full time downtown and all.

    I have to go down the street to the Safeway or Shoppers for household stuffs because there is very little selection. I am, of course, fine with that.

    However, I went to the Jasper one when they opened and I was living in my old place and was totally unimpressed. They were clearly trying for the trendy crowd and had lots of stuff I didn't relate to. I think they give their deli chefs a lot of control.

    But I've never been to one of the surburban Sobeys. I expect they're massively different from the Urban Fresh's. Are they also less expensive? I expect they're more widely stocked.

    Eve

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    Quote Originally Posted by bpeters View Post
    maybe competition bureau has something to say?
    Doesn't have to be an all-or-nothing proposition. The bureau might say fine - but sell some of those assets to competitors.

    That's pretty much what the bureau did to Safeway itself back in the day - err, or so I'm told by someone much older than I ....
    ... gobsmacked

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    ^^
    They have all the pre-made meals, salads, and fruit platters you'd find at the Whyte Sobeys in greater quantity and variety. Its definitely one of the nicer things about the chain. The rest of the selection of groceries is roughly on par with Safeway or Save-On's, but sometimes there bulk produce isn't the freshest, as previously noted on the thread.

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    Quote Originally Posted by McBoo View Post
    Quote Originally Posted by bpeters View Post
    maybe competition bureau has something to say?
    Doesn't have to be an all-or-nothing proposition. The bureau might say fine - but sell some of those assets to competitors.

    That's pretty much what the bureau did to Safeway itself back in the day - err, or so I'm told by someone much older than I ....
    I imagine that they'd want to sell the Safeway at Century Park,since they just finished renovating the Sobeys down there; it'll probably stick in their craw, but I could see the competition bureau making them sell it to Save-On-Foods

    We also now know why they sold the Sobeys across the street from Southgate to Rexall, as they'll probably rebrand that Safeway instead of building another store.

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    Quote Originally Posted by McBoo View Post
    Quote Originally Posted by bpeters View Post
    maybe competition bureau has something to say?
    Doesn't have to be an all-or-nothing proposition. The bureau might say fine - but sell some of those assets to competitors.

    That's pretty much what the bureau did to Safeway itself back in the day - err, or so I'm told by someone much older than I ....
    Nah, Top_Dawg's highly skeptical of this deja vu.

    Pre late 70s / early 80s was a different era.

    There was no Superstore, no Save-on, no Sunterra, no Wal-Mart.

    No Planet Organic or any other knob gobbler eco-terrorist bazaars.

    The only alternative to Safeway were a few Bateman's IGAs.

    And maybe a handful of Co-ops in small towns.

    Alberta Consumer and Corporate affairs forced Safeway to divest some of their stores because at the time it was estimated that Safeway controlled 85% - 90% of grocery business in the entire province.

    Nothing like today.

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    I was in Saskatoon during the food wars when Safeway drove out most of its competition (this would be the early 70s). I remember with particular fondness the Dominion store at Midtown Plaza that not only sold a lot of stuff packaged properly for single folk but also had a system of plastic buckets and check tokens that let one do one's shopping for the week, go around to the rest of the mall or downtown for other errands and then either drive or (in my case) call a taxi to pick up the basket(s) of provisions. They were driven out.

    After that, the situation that Top_Dawg describes prevailed for a decade or two.

    Eve

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    A few years ago Calgary was almost entirely dominated by Safeway. Save On Foods still hasn't opened there yet. Stupidstore and Sobeys are there.

    My parents still miss Woodward's Food Floor...they still maintain it was the best grocery this city has had.
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    Save-On-Foods opened a location in Calgary a couple years ago now. But I think they may only have the one location.

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    Quote Originally Posted by etownboarder View Post
    Save-On-Foods opened a location in Calgary a couple years ago now. But I think they may only have the one location.
    Must've closed. Calgary doesn't show up on Save On's city list.

    http://www.saveonfoods.com/select-yo...ion=node%2F120

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    Oddly enough Co-op is pretty big in the Calgary food market.

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    Co-op is still a major presence throughout rural Alberta.
    IGA was another big player in Alberta until most of the stores were bought by Sobeys ages ago.
    Last edited by Sonic Death Monkey; 13-06-2013 at 10:25 PM.
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    Most IGAs were bought by Sobeys and a few retained the IGA brand but a few that Sobeys didn't get became Freson Bros.. Interesting that Co-op was big in Calgary but disappeared in Edmonton.

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    Back to the Sobeys/Safeway merger...
    Many of us are aware of those evil covenants that Safeway has placed on their closed locations, that no grocery can replace them. Would those still be in effect once Sobeys takes over?
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    We hear lots of discussion when an American company moves in or buys out a Canadian Institution. In this case a long standing American company operating in the Canadian marketplace is being bought out by a home grown company in the free market . Nice to see some ambition on that front.

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    Quote Originally Posted by Sonic Death Monkey View Post
    Back to the Sobeys/Safeway merger...
    Many of us are aware of those evil covenants that Safeway has placed on their closed locations, that no grocery can replace them. Would those still be in effect once Sobeys takes over?
    Top_Dawg believes that by now those have all expired as they could only be slapped down for a maximum of twenty-five year.

    Given the age of the few remaining structures and their suitability for a modern grocery store, Top_Dawg figgers it would be more cost effective to simply demolish and build new than to try and salvage what's left.

    To boot Safeway had a practice of destroying the interior infrastructure such as plumbing, electrical, refrigeration lines, etc. right back to the building shell in order to make start-up as expensive and as cumbersome as possible for any potential competitor.

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    Quote Originally Posted by Hull534 View Post
    We hear lots of discussion when an American company moves in or buys out a Canadian Institution. In this case a long standing American company operating in the Canadian marketplace is being bought out by a home grown company in the free market . Nice to see some ambition on that front.
    Or this can be read as a huge American corporation pulling out of the Canadian market, thus reducing choice and competition for the Canadian consumer. Yeah, big win.

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    Always ready to deliver a negative side to a story, aren't you, Andy?
    They're going to park their car over there. You're going to park your car over here. Get it?

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    Quote Originally Posted by expat View Post
    Quote Originally Posted by Hull534 View Post
    We hear lots of discussion when an American company moves in or buys out a Canadian Institution. In this case a long standing American company operating in the Canadian marketplace is being bought out by a home grown company in the free market . Nice to see some ambition on that front.
    Or this can be read as a huge American corporation pulling out of the Canadian market, thus reducing choice and competition for the Canadian consumer. Yeah, big win.
    Safeway in the USA is in trouble....

    I think this is about getting cash in hand while its worth something... cause we need it
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    Quote Originally Posted by Gord Lacey View Post
    Always ready to deliver a negative side to a story, aren't you, Andy?
    So you see Canadians having less choice and competition as a positive? Good job Gordo!

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    With organizations like walmart thrashing the grocery industry in the USA and Canada comition isn't the issue... not in grocery.
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    Looks like Safeway is jumping ship elsewhere....................

    http://www.dailymail.co.uk/news/arti...l-Safeway.html
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    Apparently I'm not the only one wondering what will happen with the Safeway covenants...but Sobeys won't say anything til the deal is closed

    Simons: Sobeys’ purchase of Safeway comes with grocery baggage

    Restrictive covenants damaged relationship with Edmontonians
    Last edited by Sonic Death Monkey; 18-06-2013 at 07:21 AM.
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    Quote Originally Posted by Top_Dawg View Post

    Nah, Top_Dawg's highly skeptical of this deja vu.

    Pre late 70s / early 80s was a different era.

    There was no Superstore, no Save-on, no Sunterra, no Wal-Mart.

    No Planet Organic or any other knob gobbler eco-terrorist bazaars.

    The only alternative to Safeway were a few Bateman's IGAs.

    And maybe a handful of Co-ops in small towns.

    Alberta Consumer and Corporate affairs forced Safeway to divest some of their stores because at the time it was estimated that Safeway controlled 85% - 90% of grocery business in the entire province.

    Nothing like today.
    There were a handful more grocery chains back in the 1970s/1980s who provided some competition to Safeway.

    How can you forget Woodward's? It was great having dad drive up to the pick-up window to load the car after buying groceries. The downtown Bay store also had a half-decent grocery department.

    Also remember Super-Value? There was one in Bonnie Doon Mall. I am surprised they lasted so many years there considering Safeway was located in the north-end of the mall.

    Queen City Meats and Horne & Pitfield are two other businesses in that era who competed with Safeway.

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    Growing up in Dovercourt in the 60-70s we had Dominion Food, Loblaws, Safeway and Woodward food floor, all with-in walking distance. And we had a number of small mom and pop shops to get other products like meats and baked goods as well. the 70-and 80s saw the reduction in choices but we did see wholesalers increase in numbers at that time.

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    Quote Originally Posted by North Guy66 View Post
    There were a handful more grocery chains back in the 1970s/1980s who provided some competition to Safeway.

    How can you forget Woodward's? It was great having dad drive up to the pick-up window to load the car after buying groceries. The downtown Bay store also had a half-decent grocery department.

    Also remember Super-Value? There was one in Bonnie Doon Mall. I am surprised they lasted so many years there considering Safeway was located in the north-end of the mall.

    Queen City Meats and Horne & Pitfield are two other businesses in that era who competed with Safeway.
    Thanks for the blast from the past North Guy.

    Yeah Top_Dawg's memory iz getting hazy.

    Guess there were a few more than he recalls off the top of his head.

    Woodward's was a classic.

    And Ma_Dawg used to drag Top_Dawg to Queen City every week when he was a li'l pup.

    He hated it.

    Thought it was so far away.

    And it was only five blocks.



    Now it's a animal hospital.

    Top_Dawg doesn't get too close to it.

    Might cut his balls off.
    Last edited by Top_Dawg; 18-06-2013 at 11:42 AM.

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    Does anyone know if Mother Safeway is also selling the Mac Consolidated distribution - Lucerene Dairy + Ice Cream plants

    Do we loose this manufacturing and distribution business from the City?
    Do they still have a death grip on the city
    (Depends on how you look at it so I asked both ways)
    Still waiting for the Arlington site to be reborn .......

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    Some of the ice cream plants have closed down. They started that 3 months ago

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    Quote Originally Posted by expat View Post
    Quote Originally Posted by Hull534 View Post
    We hear lots of discussion when an American company moves in or buys out a Canadian Institution. In this case a long standing American company operating in the Canadian marketplace is being bought out by a home grown company in the free market . Nice to see some ambition on that front.
    Or this can be read as a huge American corporation pulling out of the Canadian market, thus reducing choice and competition for the Canadian consumer. Yeah, big win.
    Perhaps TEMPORARILY reducing choice. I'm sure after store duplication is rectified, those obsolete sites are now OPPORTUNITY for other competitors. If I'm Sobey's that's my play to Comp. Bureau to ok this deal. Actually creates opportunity for competing (similar not exact) business for those sites; Giant Tiger, NoFrills, Planet Organic, etc. Maybe an interested U.S. firm takes a look at some; Kroger's, SuperValu? Depending on locations, maybe Kohl's?

    Think positive.
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    It's too bad that the food industry has become so low margin and high centralized. It would be great to have smaller, perhaps independent, stores scattered through the city.

    I grew up in Winnipeg before the Mac's and the 7Eleven's took over. My family ran a small confectionery where we lived behind and above the store. Our friends were fellow store owners. There was one of these every three or four blocks. While our store certainly had the pop cooler and the rack of chips and chocolate bars, the bulk of the store was grocery with a small butchery in the back and fresh fruits and vegetables along one side. Some people did the bulk of their grocery shopping there. There was no staff outside of the family.

    Those were different days where people didn't necessary need 50 brands of toothpaste and a dozen brands of mustard. The store was closed at 8pm but because we lived there emergency groceries could be gotten by knocking on our door.

    And then the 7Elevens were rumoured to be coming with their 24-hour opening hours and of course you can't compete with that.

    Eve

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    Those sound like fun days Eve.

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    Quote Originally Posted by bpeters View Post
    Quote Originally Posted by expat View Post
    Quote Originally Posted by Hull534 View Post
    We hear lots of discussion when an American company moves in or buys out a Canadian Institution. In this case a long standing American company operating in the Canadian marketplace is being bought out by a home grown company in the free market . Nice to see some ambition on that front.
    Or this can be read as a huge American corporation pulling out of the Canadian market, thus reducing choice and competition for the Canadian consumer. Yeah, big win.
    Perhaps TEMPORARILY reducing choice. I'm sure after store duplication is rectified, those obsolete sites are now OPPORTUNITY for other competitors. If I'm Sobey's that's my play to Comp. Bureau to ok this deal. Actually creates opportunity for competing (similar not exact) business for those sites; Giant Tiger, NoFrills, Planet Organic, etc. Maybe an interested U.S. firm takes a look at some; Kroger's, SuperValu? Depending on locations, maybe Kohl's?

    Think positive.
    If I'm Sobey's I'm buying up all those Safeway covenants and keeping them in place and effectively stifling competition.

    Think Pragmatic.

  61. #61

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    Quote Originally Posted by expat View Post
    Quote Originally Posted by bpeters View Post
    Quote Originally Posted by expat View Post
    Quote Originally Posted by Hull534 View Post
    We hear lots of discussion when an American company moves in or buys out a Canadian Institution. In this case a long standing American company operating in the Canadian marketplace is being bought out by a home grown company in the free market . Nice to see some ambition on that front.
    Or this can be read as a huge American corporation pulling out of the Canadian market, thus reducing choice and competition for the Canadian consumer. Yeah, big win.
    Perhaps TEMPORARILY reducing choice. I'm sure after store duplication is rectified, those obsolete sites are now OPPORTUNITY for other competitors. If I'm Sobey's that's my play to Comp. Bureau to ok this deal. Actually creates opportunity for competing (similar not exact) business for those sites; Giant Tiger, NoFrills, Planet Organic, etc. Maybe an interested U.S. firm takes a look at some; Kroger's, SuperValu? Depending on locations, maybe Kohl's?

    Think positive.
    If I'm Sobey's I'm buying up all those Safeway covenants and keeping them in place and effectively stifling competition.

    Think Pragmatic.
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  62. #62

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    Quote Originally Posted by expat View Post
    Quote Originally Posted by bpeters View Post
    Quote Originally Posted by expat View Post
    Quote Originally Posted by Hull534 View Post
    We hear lots of discussion when an American company moves in or buys out a Canadian Institution. In this case a long standing American company operating in the Canadian marketplace is being bought out by a home grown company in the free market . Nice to see some ambition on that front.
    Or this can be read as a huge American corporation pulling out of the Canadian market, thus reducing choice and competition for the Canadian consumer. Yeah, big win.
    Perhaps TEMPORARILY reducing choice. I'm sure after store duplication is rectified, those obsolete sites are now OPPORTUNITY for other competitors. If I'm Sobey's that's my play to Comp. Bureau to ok this deal. Actually creates opportunity for competing (similar not exact) business for those sites; Giant Tiger, NoFrills, Planet Organic, etc. Maybe an interested U.S. firm takes a look at some; Kroger's, SuperValu? Depending on locations, maybe Kohl's?

    Think positive.
    If I'm Sobey's I'm buying up all those Safeway covenants and keeping them in place and effectively stifling competition.

    Think Pragmatic.
    I am. CB by nature of their reporting will basically ask Sobeys "So...what are your plans for the duplicate sites....?" Sobeys: "Umm, we're going to buy the sites, sterilize the real estate and stop any competitors from going into them in any way, shape, or form. Next question?" CB: Wrong answer. Deal dead. Next?"
    He who posteth too much, should moveth out of his parents basement and get a life.

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    Any word yet on whether Sobeys will be moving its executive offices into Safeways executive offices in Calgary?...Or perhaps safeway moving their executive offices into the Sobeys offices in edmonton.

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    Yes cause two days after the announcement of a sale (that isn't completed) they MAGICALLY know EVERYTHING about how things will unfold over the next 5 years.

    Sarcastic font off.
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    It's a fair question. But no, the answer probably isn't yet available.

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    This could be very good news.

    Sobeys' parent company sells 68 Safeway properties for $990M
    BY THE CANADIAN PRESS JULY 25, 2013

    STELLARTON, N.S. - Empire Company Ltd. announced a plan Wednesday to sell 68 Safeway properties in a sale-leaseback deal with Crombie REIT for $990 million in cash.

    The company, which owns the country's second-largest grocer Sobeys Inc., said the properties involved in the sale are located in British Columbia, Alberta, Saskatchewan and Manitoba.

    In early June, Empire signed an agreement to buy more than 200 grocery stores from Canada Safeway Ltd. in a $5.8-billion deal. At the time, it said that it intended to finance the acquisition with a $1 billion sale-leaseback that it would first offer to Crombie REIT.

    "We are pleased to announce this sale leaseback transaction between Sobeys and Crombie REIT," Empire president and chief executive Paul Sobey said in a statement.
    The properties in the deal Wednesday total three million square feet of gross leasable area and include 49 freestanding stores and 19 retail plazas, each anchored by a Canada Safeway grocery store.

    There are 29 properties in B.C., 27 in Alberta, three in Saskatchewan and nine in Manitoba.
    http://www.edmontonjournal.com/busin...dmontonjournal

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    This isn't really a sale, more of a shuffle in assets. Both Sobey's and Crombie REIT are owned by Empire. Crombie is Empire's Property Management wing, so they must be taking these stores over to sell them to other companies or landlords.

    Here is a press release from the company listing the stores that will be shifted to Crombie. Interesting to see Garneau Safeway on that list.

    http://www.crombiereit.ca/en/news_re...ly_24_2013.pdf

  68. #68

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    ^^I hope this finally pushes the 109st and Whyte Safeway to be redeveloped, or at least sold to someone who wants to redevelop it! Still hoping towards their 2014 smashing-date
    Live and love... your neighbourhood.

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    Garneau Safeway has been on the chopping block for years. Fingers crossed. This might be the last nail.
    Live and love... your neighbourhood.

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    I guessing if its on the chopping block list, and someone purchases the site they wouldn't want it staying stagnant for a long time.

    Interesting to see so many Calgary stores for sale. I wonder if Sobey's is dangling this as bait for Save-on to purchase these. There are no Save-on Foods in Calgary whatsoever, good way to get their foot in the market.

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    My read isn't that these stores will necessarily close. A real estate investment trust is purchasing them to lease back - as I read it - to Sobeys.
    ... gobsmacked

  72. #72

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    There have also been exploratory studies done regarding the conversion of the Garneau Safeway into a large urban format where the ground level of the entire lot is street-facing retail and parking behind/inside, with the drastically expanded Safeway occupying the second level of the redevelopment. The location recognized as having significant expansion potential.
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    Quote Originally Posted by McBoo View Post
    My read isn't that these stores will necessarily close. A real estate investment trust is purchasing them to lease back - as I read it - to Sobeys.
    The Crombie REIT is wholly owned by Empire, which also owns Sobey's. The sites listed in Edmonton are close to current Sobey's locations, so they would probably rather sell the land to another company or developer. The Safeway at Garneau is just down the street from Sobey's, so I'm sure the would be better for Empire to shift the asset to the REIT and sell it for top dollar than have two Sobey's so close together. I'm sure we will see Loblaws do this with select Shopper's locations as well.

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    http://www.630ched.com/2013/09/17/co...tition-bureau/

    Council to weigh into Safeway Sobey’s merger with competition bureau

    Edmonton, AB, Canada / 630 CHED
    Scott Johnston
    September 17, 2013 08:28 am


    Unless something unforseen happens, the very last thing this city council will do, will come at the end of Wednesday’s meeting at City Hall. In some ways its a food fight.

    It’s expected city council will approve sending a letter to the competition bureau, weighing in on the merger between Safeway and Sobey’s. For years Safeway has had a restrictive covenant on its land title that says when they leave, no other grocery store can take its place. Coun. Don Iveson wants to change that.

    “These land sterilizing restrictive covenants, Safeway has put in all across Edmonton, locking down Highlands, locking down Petrolia, locking down Landsdowne, those should be struck before these two companies are allowed to come together and they shouldn’t be allowed to put new ones in place, at least not new ones that will be allowed to last forever.”
    “With so giant a chain of grocery stores that would be created by the merger they would have the opportunity to really squeeze every one else out,” Iveson said.
    “It’s always been bad for competition and bad for business.”

    If it can’t be an outright ban on the restrictive covenant, at the very least the proposal would see new grocery stores allowed to move in five years after a Safeway moves out.
    (sj)
    “You have to dream big. If we want to be a little city, we dream small. If we want to be a big city, we dream big, and this is a big idea.” - Mayor Stephen Mandel, 02/22/2012

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    May be a thorny legal issue. Intentions are great but I wonder what authority council has to regulate these covenants

    Safeway > Sobeys, but i hope the sale has some effect on the covenanted lands that currently exist
    Parkdale

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    Don Iveson's motion re: Letter to Competition Bureau passed unanimously by Council
    http://doniveson.ca/2013/09/18/restr...on-of-safeway/
    “You have to dream big. If we want to be a little city, we dream small. If we want to be a big city, we dream big, and this is a big idea.” - Mayor Stephen Mandel, 02/22/2012

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    ^good on Don/Council.
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    Ditto.

    Is there any concise information on how land covenants work in Alberta or Canada. I was trying to look up the legalities but short of reading the entire Land Title's Act there didn't seem to be a lot of information.

    "For every complex problem there is an answer that is clear, simple, and wrong"

  79. #79

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    lets hope they listen
    "Do you give people who already use transit a better service, or do you build it where they don't use it in the hopes they might start to use it?" Nenshi

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    3 of my 4 closest grocery stores are Safeway/sobeys, plus the long-vacant covenant restricted ex-Safeway.

    This is exactly the kind of thing that the competition bureau should be looking at.

    Don just secured my vote.

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    Here is what sets Don a part. REAL community/city interest.
    Live and love... your neighbourhood.

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    Wonder if we have a mayoral candidate that will ask Sobeys if Edmonton gets to keep its regional office with around 110 corporate employees or if it will slowly get merged into the Calgary Safeway hq office with over 650 employees...

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    Default Sobeys ordered to divest some stores prior to sale approval

    Edmonton, Safeway Millwoods, 2331– 66th Street.
    Edmonton, Sobeys Hawkstone, 18370 Lessard Rd.
    Edmonton, Sobeys Goldbar, 5036 — 106th Ave.
    Edmonton, IGA Ottewell, 6204 — 90th Avenue NW.
    Still waiting for the Arlington site to be reborn .......

  84. #84

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    ^ insider information or do you have a link?

  85. #85

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    Hopefully those divested stores won't include any covenants. Speaking of which, I wish the Competition Bureau will address that matter re: Safeway.
    “You have to dream big. If we want to be a little city, we dream small. If we want to be a big city, we dream big, and this is a big idea.” - Mayor Stephen Mandel, 02/22/2012

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    Quote Originally Posted by Cured View Post
    Wonder if we have a mayoral candidate that will ask Sobeys if Edmonton gets to keep its regional office with around 110 corporate employees or if it will slowly get merged into the Calgary Safeway hq office with over 650 employees...
    This is a really good question...
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    Quote Originally Posted by Blueline View Post
    Edmonton, Safeway Millwoods, 2331– 66th Street.
    Edmonton, Sobeys Hawkstone, 18370 Lessard Rd.
    Edmonton, Sobeys Goldbar, 5036 — 106th Ave.
    Edmonton, IGA Ottewell, 6204 — 90th Avenue NW.

    Very surprised the one in Beverly is not closing considering how close it is to Safeway. My guess is the plan is to close hte safeway instead??

    The goldbar and ottwell stores were nice and conveinent. It seems more like they were too small for sobeys, and this is a nice way they can close them down??

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    Ottewell! Nooo! They have great quick-n-easy Ukrainian food.
    Live and love... your neighbourhood.

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    Glad the DT Sobeys is not included!
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    It's interesting that they're going to keep the Safeway and Sobeys in the University area. I'd have to assume that geographically they're the two closest stores in the city.
    They're going to park their car over there. You're going to park your car over here. Get it?

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    They deal with somewhat different clientele. Also, that is a very dense neighborhood full of people who don't drive much (i.e., university students).

    Eve

  93. #93

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    The Urban Sobeys is also a very different format.
    "Do you give people who already use transit a better service, or do you build it where they don't use it in the hopes they might start to use it?" Nenshi

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    It will be very disappointing if they are allowed to put a covenant on these sites.

    As for the Goldbar store, Sobeys doesn't own the property, so there's not likely a chance that they'll be able to put any rstrictions on it.

    I really don't like Sobeys at all. The conventional stores are not as good as Save-On stores for a variety of reasons, heard better things about the one at the U but the DT store is awful. IT's too bad this is the brand that's swallowing up competition.

    I'd love to get a better brand close to us at our new place in Goldbar
    Parkdale

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    The Sobeys at the U has a much better prepacked meals selection than the downtown store. I had a tour through the downtown store recently and noticed that they had nothing of the kind there. In fact, it made me wonder if I shouldn't cling to the Garneau location rather than moving downtown because most of my meals come from that section.

    Eve

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    Quote Originally Posted by 240GLT
    the DT store is awful
    What, you don't like bare shelves and nearly expired food that's 20-30% more expensive than other stores?

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    ^Or paper towels that come only in packages of six.

    Clever marketing tool in a location surrrounded by 500 sq ft apartments and condos .......

    Or, maybe not so much.
    ... gobsmacked

  98. #98

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    I find it interesting that St Albert doesn’t lose at least 1 Safeway. There is a Sobeys and Safeway across from each other on the Trail. Plus another Safeway at the south end of town.

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    Quote Originally Posted by 240GLT View Post
    It will be very disappointing if they are allowed to put a covenant on these sites.

    As for the Goldbar store, Sobeys doesn't own the property, so there's not likely a chance that they'll be able to put any rstrictions on it.

    I really don't like Sobeys at all. The conventional stores are not as good as Save-On stores for a variety of reasons, heard better things about the one at the U but the DT store is awful. IT's too bad this is the brand that's swallowing up competition.

    I'd love to get a better brand close to us at our new place in Goldbar
    not only will you not see any restrictive covenants on these sites, it's my understanding that the requirement for sobeys is to dispose of all of them to another grocer(s).
    "If you did not want much, there was plenty." Harper Lee

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    Quote Originally Posted by BalancedOP View Post
    I find it interesting that St Albert doesn’t lose at least 1 Safeway. There is a Sobeys and Safeway across from each other on the Trail. Plus another Safeway at the south end of town.
    the decision was only related to stores and markets where sobeys is required to sell to another grocer so as to maintain what the feds determined to be minimally acceptable competition/options for consumers. in markets like st albert there is already more than sufficient competition present for the consumer to have those options (i.e. save-on-foods, superstore, costco, walmart, target etc.). sobeys would still be free to close one or more of the existing safeway/sobeys stores if there is not sufficient demand to support all of them, this just means they won't be obligated to do so as a condition of this transaction. where not obligated to dispose to another grocer, they are probably still entitled to place restrictive covenants.
    Last edited by kcantor; 23-10-2013 at 03:30 PM.
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