Council to weigh into Safeway Sobey’s merger with competition bureau
Edmonton, AB, Canada / 630 CHED
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.