Safeway / SWY

About Safeway

5918 Stoneridge Mall Rd., Pleasanton, Calif. 94588
www.safeway.com | 925-467-3000 | Founded: 1926

Industry: Retail | Category: Major Employers Not Based in the Region

Safeway has always played second banana to Giant Food in the Washington area. But over the past few years it has steadily gained market share while Giant stumbled. According to the trade publication Food World, Safeway, with 105 stores in the area, last year held nearly 27 percent of the market, up from 26.6 percent in 2004.
Last year, the California company unveiled its new brand strategy and store concepts, positioning itself to take on both discount retailers and high-end grocers in an increasingly competitive industry.
Safeway launched a $100 million marketing campaign titled "Ingredients for Life," which focuses on providing solutions for customers. The company also has ambitious plans to remodel all of its stores into "lifestyle centers" that focus on perishables: more organic foods; a full-service meat counter and bakery; plants and flowers; and sushi and olive bars. The look of the stores will be updated with hardwood floors in some areas and more subdued overhead lighting. By the end of 2005, 385 stores had been refurbished in this way.
"This is the most significant, fully integrated branding initiative in our history," Safeway Chief Marketing Officer Brian Cornell said in a statement.
The company expects to spend about $1.6 billion this year to build 20 to 25 stores and remodel about 280 stores. Profit was nearly flat for fiscal 2005, which Safeway attributed to the cost of renovating stores.

Chairman and CEO: Steven A. Burd

2005 Financial Data

Revenues: $38,416,000,000 | Net Income: $561,100,000
Asssets: $15,756,900,000 | Earnings Per Share: $1.25
Total employees: 201,000 | Local employees: 9,000