Sobeys Boosts East Coast Footprint With Co-Op Deal

Sobeys Inc., the country’s second largest grocer, is poised to gain more clout in its key Atlantic Canada market thanks to a proposed supermarket deal announced over the weekend. But the move comes amid concerns of growing consolidation in the grocery sector.

Sobeys, owned by Empire Co. Ltd. of Stellarton, N.S., sealed an agreement on Saturday to buy most of the corporate food and gas retail stores and wholesale assets of Co-op Atlantic. Co-op is a network of about 170 supermarkets and convenience stores that operate under the banners Co-op, Valufoods, Village Mart and Rite Stop.

While only about 10 stores would probably change hands, the deal could bolster Sobeys’ position by making it a bigger supplier to grocers in the region, giving it more influence in determining pricing and product offerings. The value of the deal has not been disclosed.

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