Quote:
Originally Posted by cheswick
Don’t think that’s the case here because Sobeys owns both Safeway and fresh o brands. I believe they own the building that’s been sitting vacant for almost a decade too.
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Sobey's is leasing that location from a developer called Lanstar Development.
All the owned locations can be found on the Crombie Reit web site. Crombie is the REIT that Sobey's parent owns for the purpose of owning some of the store locations.
It's like the former Safeway on Henderson @ Bronx that became a FreshCo, Sobeys let the building go dark for a few years before rebranding.
But in that case it was a Sobey's owned location so it only cost them property taxes, heating costs, and a quick snow clearing on the lot as required to allow fire dept access to the front of the store.
The owner of Family Fare in Winnipeg was interested in buying/leasing that location but Sobey's did not want to sell as it would impact the their two stores (Sobey's Northdale and Safeway River East) to the north on Henderson Highway
There was probably a section in the lease allowing Sobey's to pay rent to Landstar Development under a "go dark" agreement. Bigger retailers try to insert go dark clauses in their rental contracts to keep competitors out if they close their stores.
Off the top of my head I can think of two other Winnipeg locations where Sobey's has two of their brands very close to each other:
1) McGillavery and RTE 90 (Safeway and Sobey's)
2 Panet Rd south of Nairn (FreshCo and Sobey's)