Wednesday, January 9, 2013
Will we soon be trading our shopping loyalties to President's Choice?
High among them the Ontario based Loblaw's chain which apparently has a large sum of money available for investment and Canada Safeway it seems is on their target list and has been on the rumour list for a while now as a potential takeover target.
The National Post outlined the number crunching that will see Loblaw's end up with about 670 million dollars to use for acquisitions, with Canada Safeway seemingly the target of preference, offering Loblaw's the chance to grow its brand in Western Canada a part of the country where it is still rather low in numbers.
Another possibility for any Safeway takeover is the eastern based Sobey's chain which like Loblaw's, have yet to make a move in great numbers over the Rocky Mountains.
Loblaw's, Canada's largest food retailer, once had a presence in Prince Rupert, all be it indirectly through the Extra Foods store that once was located in the Rupert Square, many of their line of President's Choice products were featured on the shelves prior to that stores closing in the aftermath of a nasty labour dispute.
The potential shake up of the grocery sector is part of a larger issue facing the traditional grocery store these days, as such locations as Wal Mart and the soon to arrive in Canada Target, expand the grocery options that they have to offer in their stores.
Should the rumblings of the financial world prove true, Loblaw's may once again enter the Prince Rupert market, however, the shopping options for the dedicated grocery store will remain the same, with the potential loss of one long established and familiar brand, or the other as the price of financial transactions.
Some other reviews of the potential changes in your daily shopping plans can be found below.
Toronto Star-- Safeway likely to be sold as food fight heats up: Analyst
Vancouver Market -- Loblaw buying Canada Safeway No Pipe Dream in Spinoff
Bull fax-- Will Loblaw snap up Safeway with its REIT riches?