Sobeys Buys Canada Safeway

News & Discussion from the grocery retailers in the Canadian provinces & territories
pseudo3d
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Re: Sobeys Buys Canada Safeway

Post by pseudo3d »

They're going to convert up to 25% of the Sobeys/Safeway stores into FreshCo.

http://www.producenews.com/the-produce- ... unt-banner
bm10k
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Re: Sobeys Buys Canada Safeway

Post by bm10k »

10 Safeway Stores in B.C. Lower Mainland Are closing
http://www.cbc.ca/news/canada/british-c ... -1.4500761
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Re: Sobeys Buys Canada Safeway

Post by marshd1000 »

This is old news but the first time I have heard of this. Sobey’s has started franchising Safeway stores!

http://www.panow.com/article/670060/pa- ... ern-canada
Last edited by marshd1000 on April 25th, 2018, 4:34 am, edited 1 time in total.
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Re: Sobeys Buys Canada Safeway

Post by storewanderer »

marshd1000 wrote: April 24th, 2018, 10:14 pm This is old new but the first time I have heard of this. Sobey’s has started franchising Safeway stores!

http://www.panow.com/article/670060/pa- ... ern-canada
Man... franchising existing Safeway Stores that are still stuck in the old US Lifestyle model... even with a Starbucks inside still... well, Sobey's seems to be failing at operating them so maybe these franchisees (probably just previous Safeway managers) can do a better job...
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Re: Sobeys Buys Canada Safeway

Post by pseudo3d »

storewanderer wrote: April 24th, 2018, 10:55 pm
marshd1000 wrote: April 24th, 2018, 10:14 pm This is old new but the first time I have heard of this. Sobey’s has started franchising Safeway stores!

http://www.panow.com/article/670060/pa- ... ern-canada
Man... franchising existing Safeway Stores that are still stuck in the old US Lifestyle model... even with a Starbucks inside still... well, Sobey's seems to be failing at operating them so maybe these franchisees (probably just previous Safeway managers) can do a better job...
The article certainly makes it sound wonderful, but it doesn't bring up the possibility that franchising could create some absolutely terrible, overpriced stores that make the D-grade Safeways in the U.S. look halfway decent in comparison.
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Re: Sobeys Buys Canada Safeway

Post by storewanderer »

I went into one of these "FreshCo" Stores in Richmond, BC. This store was somewhat symbolic for me as it was the first Canada Safeway I went into, right after the Sobeys purchase of the chain. I remember that visit well because I had a lot of trouble in the parking lot getting parking since the store and shopping center in general were so crowded...

FreshCo is basically just a copy of the Loblaw No Frills format but it has more SKUs and clearly not as good of a private label program. Did I mention more SKUs? Kills the efficiency this format is supposed to have. This store still had a pharmacy inside and small aisles in front of it with a full conventional supermarket (Safeway like) mix of drug; pricing on that category was generally 2 cents below a regular Safeway. No in store preparation for meat, bakery, deli, etc. just case ready product. Pricing in the rest of the store is certainly lower than a regular Safeway.

I am a little curious exactly what they are doing here. At this store they had a big sign hanging above the checkstand that said "we'll beat any price" and then there was a photo of some guy's face and then this guy's name and the title "Store Owner." So what exactly are they doing? Are they closing these Safeway Stores then franchising them out or something? I know the Loblaw No Frills are franchise type arrangements...

The store was pretty slow and just after 6 PM the self checkouts were already closed and the two open checkstands did not even have lines (not even steady traffic... just a trickle of customers with a minute or two in between).

As I walked through this place I couldn't help but think here we are in a very densely populated area, what was a VERY busy Safeway right after Sobeys bought it, and now it is this... limited service discount format with hardly any customers during peak hours... wow.

Later I came across another Safeway down in Lander, BC I think... busy shopping center, busy store. Notices posted that it closes in a month for conversion to FreshCo.

I am not sure how they are picking what stores to convert... because it seems like they are taking good stores.

I went into 4 other Safeways around Vancouver and they were terrible. Dirty stores, messy shelves, marginal looking bakery (cannot believe what has happened to that... used to be exceptional), and not great produce; delis and meat still looked okay... kind of feels like they are just trying to run this Safeway format into the ground.

Too bad Sobeys couldn't have sold these Canada Safeways back to Albertsons before going this "FreshCo" route.
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