Winnipeg Free Press - PRINT EDITION

Safeway sale means Winnipeg to lose four stores

  • Print

STELLARTON, N.S. -- The federal Competition Bureau has approved the $5.8-billion purchase of grocer Safeway Canada by Sobeys, but only on condition that the Nova Scotia-based supermarket operator put 23 stores in Western Canada up for sale.

Sobeys purchased 213 stores under the initial agreement, which included 199 in-store pharmacies and 62 gas stations on the Safeway properties.

The retailer will still come away with a gain of 190 locations overall from the Safeway acquisition.

"I am confident this agreement will ensure that Canadian consumers continue to benefit from competitive prices for a wide selection of grocery products," competition commissioner John Pecman said in a statement Tuesday.

Sobeys, which is owned by Empire Co. Ltd., says the stores for sale are under various labels, including Safeway, Sobeys, IGA and Price Chopper. The stores are located in British Columbia, Alberta, Saskatchewan and Manitoba.

The Manitoba stores that must be sold include the Safeway outlets in the Grant Park and St. Vital shopping centres, at Main and Luxton, and the Southdale store on Vermillion Road. The Price Choppers store at Stafford and Pembina is also on the list.

The president of the union which represents the 300 to 350 workers in the four Safeway stores -- Local 832 of the United Food and Commercial Workers Union -- said if the Safeway stores are sold, the buyers will have to honour the union contract Local 832 has with Safeway. That agreement runs until next March 15, Jeff Traeger added.

Traeger said he expects the St. Vital and Grant Park stores to be snapped up quickly because of their size and location. The union hopes buyers can be found for the other two Safeway outlets.

The staff at the Price Choppers store is not unionized, he added.

"Our focus now turns to closing the deal, which we expect to do in early November," Sobeys president and CEO Marc Poulin said in a release.

The acquisition marks one of the larger recent transactions by a Canadian grocer, as consolidation sweeps the industry amid the entry and expansion of several U.S. retail giants.

Earlier this year, Loblaw secured an agreement to buy Shoppers Drug Mart Corp. for $12.4 billion in cash and stock, a deal that is still under review by the federal competition agency.

 

-- The Canadian Press with staff files

Republished from the Winnipeg Free Press print edition October 23, 2013 B5

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Key of Bart: NDP Self-Destruction

View more like this

Photo Store Gallery

  • Geese take cover in long grass in the Tuxedo Business Park near Route 90 Wednesday- Day 28– June 27, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)
  • A red squirrel peaks out of the shade in a tree in East Fort Garry, Sunday, September 9, 2012. (TREVOR HAGAN/WINNIPEG FREE PRESS)

View More Gallery Photos

Poll

How would you vote on the Tories' upcoming non-confidence motion?

View Results

View Related Story

Ads by Google