Sobeys Buys Canada Safeway

News & Discussion from the grocery retailers in the Canadian provinces & territories
storewanderer
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Re: Sobeys Buys Canada Safeway

Post by storewanderer »

Thrifty Foods is fine if you like a bare bones perimeter, super high prices (higher than Whole Foods in Canada which was HIGH priced), crummy private label mix, and clean stores (due to having so few customers).

I give Sobeys credit for keeping Safeway's perimeter largely in tact and not trying to go with their own perimeter programs. Where I get confused is why they have not brought the superior Safeway perimeter programs into Thrifty Foods. It is like they are trying to fail or something?

Target Canada happened right around the same time as Sobeys bought the Safeway Stores and I wonder if that was really ever a profitable account for them given the lack of volume and other problems Target was having in Canada. If anything the Target Canada thing may have been an unnecessary distraction for them as they tried to digest Safeway.

In any case I wish them the best but they have very stiff competition with Loblaws. If I was in Canada, I would not shop Safeway much; I'd go there for ad items, bakery/deli, and not much else. And if I was near a Loblaws City Market (absolutely top of the line perimeter, one of the best I've ever seen) I would probably be skipping Safeway completely. I'd be at various of Loblaws formats for everything else; center store, non food, etc.
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Re: Sobeys Buys Canada Safeway

Post by pseudo3d »

Things just continue to get worse at Sobeys. At this point, I can see them doing mass closures or trying to sell Safeway Canada back to Albertsons. Probably the former, since I doubt Albertsons wants it back.
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Re: Sobeys Buys Canada Safeway

Post by SamSpade »

For those wondering, this is the latest. Another quarterly drop for Canada's 2nd largest grocer.

How many large grocers does Canada have? I can think of:
Loblaw's (and its many brands, including Asian-focused T&T)
Sobey's (and its few brands)
Pattison? (Save-On / Overwaitea group)
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Re: Sobeys Buys Canada Safeway

Post by bm10k »

Jim Patterson (who owns Overwaitea/Save-On Foods) Might Be Interested in the Western Canada Locations


http://www.canadiangrocer.com/top-stori ... ions-72077

Save-On Foods just recently opened 3 stores in Winnipeg and has a store in Regina
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Re: Sobeys Buys Canada Safeway

Post by storewanderer »

I think the Competition Bureau may have a thing or two to say about Save On buying many additional stores in Western Canada...

Maybe they can wait a few years for Loblaws to build more City Markets, Superstores, No Frills, and Shoppers Drug Marts and then it may work out...

Best case would be Sobeys getting its act together. I don't think it is a lost cause yet. Yet. The problem is, Loblaws formats are so infinitely better on private label and pricing... where Loblaws has some weakness is perimeter (except in its City Market format; fantastic perimeter there) but Sobeys does not execute its perimeters to the old Safeway standard which just adds to their weakness.
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Re: Sobeys Buys Canada Safeway

Post by marshd1000 »

Looks like Pattison also just bought Vancouver Island based Quality Foods:

http://www.canadiangrocer.com/top-stori ... oods-71738
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Re: Sobeys Buys Canada Safeway

Post by pseudo3d »

They opened a new Safeway in Canada. I'm not familiar with Sobeys decor, but the inside from what is visible is clearly not Lifestyle despite a similar color palette. Is this new entirely, or does Sobeys use this package?

http://www.sherwoodparknews.com/2017/05 ... tion-opens
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Re: Sobeys Buys Canada Safeway

Post by storewanderer »

This does not look like the decor on a newish "Thrifty Foods" in North Vancouver.

That is a positive they are trying different things... because their legacy (pre Safeway) ideas are lame. To be polite.
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Re: Sobeys Buys Canada Safeway

Post by storewanderer »

Went to a Safeway in Cranbrook, BC. Typical Safeway lifestyle store and layout.

Walking in, floral looked a little lighter than you'd expect. But this is rural Canada. Produce looked about "normal" for a Safeway, though some displays were a little shallow. Center store as I started walking the aisles: wow. Numerous items out of stock or very lightly stocked. VERY high pricing (much higher than the nearby Superstore or Wal Mart). Shelves not properly fronted or faced. I also noticed the store was virtually deserted of customers. Bakery had a mostly empty cake case both for service and self service, but the bread/roll/donut/cookie/bagel drawers were all very well stocked; they have not changed one thing about the bakery program. The deli also looked pretty good. Paid through the self checkout.

Stopped at the Safeway gas station. I see they are still using the same system for pay at the pump as the US Safeway uses, however, it has been updated to accept Chip Cards and Tap Cards. The gas receipt prints you out a grocery discount, it appears for every liter of fuel you buy, they give you a 2 cent discount on groceries inside Safeway. Interesting promotion to try to get gas customers to go into the store, but I hardly think it will help.

I am wondering what will happen to Sobeys.
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Re: Sobeys Buys Canada Safeway

Post by SamSpade »

Latest Sobey's struggle - no mention of changes to Safeway / Western Canada:
http://www.cbc.ca/beta/news/business/so ... -1.4417481
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