Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Safeway plans closings (Texas)
Dallas Morning News ^ | Oct. 19, 05 | KAREN ROBINSON-JACOBS

Posted on 10/19/2005 4:26:53 PM PDT by PAR35

Safeway, based in Pleasanton, Calif., said it will close 26 underperforming stores by year's end, including nine Tom Thumb stores in Dallas-Fort Worth. It will also shutter 16 Randalls stores in Houston and one in Austin.

That will leave Safeway with 62 stores in Dallas-Fort Worth, 36 in Houston and 14 in Austin. It plans to remodel many of the remaining Texas stores to create so-called lifestyle centers, with higher-end products

***

Analysts viewed the closings as a better alternative than exiting the market – an option never suggested by the company but repeatedly mulled by industry observers.

They also pointed to Safeway's plans to remodel stores as a sign that it aims to make a game of it against Wal-Mart Stores Inc. and San Antonio-based H.E. Butt Grocery Co.

"Considering all the options that have been on the table ... I think closing a few stores speaks volumes about their confidence in being able to turn the remainder of them into profitable stores," said Mark Husson, an analyst with HSBC Securities.

In a note to investors, research analyst Edward J. Kelly of Credit Suisse First Boston called the Texas division "challenging" but labeled the closings a positive.

***

In recent years, Tom Thumb and Randalls have faced increased competition and lost market share, prompting rumors that the Texas chains were for sale.

In 2003, Safeway took a noncash goodwill impairment charge of $704.2 million for its 134 Texas stores.

Tom Thumb lost market share in Dallas-Fort Worth as shoppers complained about changes in food offerings.

***

(Excerpt) Read more at dallasnews.com ...


TOPICS: Business/Economy; Extended News; US: California; US: Texas
KEYWORDS: austin; dallas; grocery; grocerystores; houston; randalls; safeway; tomthumb; walmart
Yes, it is always a good sign when your customers are complaining about change and you shove more of it down their throat.

As they say in Dallas - shop Tom Thumb - Safeway quality at Simon David prices.

1 posted on 10/19/2005 4:26:55 PM PDT by PAR35
[ Post Reply | Private Reply | View Replies]

To: PAR35

If I had the choice between Tom Thumb, and H.E. Butt, well, I don't know...


2 posted on 10/19/2005 4:33:32 PM PDT by Dan Nunn
[ Post Reply | Private Reply | To 1 | View Replies]

To: PAR35
Our local Safeway died twenty years ago, maybe more.
Back then, they were union. Check-out girls made about twelve bucks an hour, compared to five dollars or so everywhere else. The stores were clean, but the other chain stores could clean their clock on price.
This was the days before the Wal-Mart super centers.{Locally} I'm curious, is Safeway still union?
3 posted on 10/19/2005 4:54:55 PM PDT by labette (Nothing is foolproof to a sufficiently talented fool.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: PAR35
Our local Safeway died twenty years ago, maybe more.
Back then, they were union. Check-out girls made about twelve bucks an hour, compared to five dollars or so everywhere else. The stores were clean, but the other chain stores could clean their clock on price.
This was the days before the Wal-Mart super centers.{Locally} I'm curious, is Safeway still union?
4 posted on 10/19/2005 4:56:19 PM PDT by labette (Nothing is foolproof to a sufficiently talented fool.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: labette

Oops! Oops!


5 posted on 10/19/2005 4:58:07 PM PDT by labette (Nothing is foolproof to a sufficiently talented fool.)
[ Post Reply | Private Reply | To 4 | View Replies]

To: labette

The ones in Washington State are still Union. As for myself, I shop Trader Joe's (non-union) for most of my dry goods, frozen goods, and dairy, buy my fish at an independent fish market and my produce at the greenmarket. Better quality than Safeway and QFC (Kroger) and cheaper too.


6 posted on 10/19/2005 5:00:04 PM PDT by Clemenza (Gentlemen, Behold!)
[ Post Reply | Private Reply | To 3 | View Replies]

To: PAR35

It's HEB's fault!!


7 posted on 10/19/2005 5:09:29 PM PDT by LA Woman3
[ Post Reply | Private Reply | To 1 | View Replies]

To: LA Woman3

HEB in Del Rio had an excellent wine selection for a small border town.


8 posted on 10/19/2005 5:11:47 PM PDT by Clemenza (Gentlemen, Behold!)
[ Post Reply | Private Reply | To 7 | View Replies]

To: PAR35

I love my Tom Thumb Flagship store. I will be totally bummed if it closes.


9 posted on 10/19/2005 5:15:31 PM PDT by altura (T.G.I.B.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: PAR35
I used to shop pretty regularly at the Safeway in Tempe, but lately they've converted all their stores to the "lifestyle" stuff. What this means is they laid down rough wood floors in the produce department, and raised their prices 20%.

I'm sure some segment of the population thinks this is a good trade-off, but it doesn't include me.

My shopping strategy is this: if it's on the short list of things I buy and it's on sale, I buy as much as I have room for at home. If it's not on sale, I might buy one -- if I absolutely need it.

And then there's the list of things I buy at Trader Joe's, because they never have sales. The latest addition to that list is their frozen organic broccoli. It's a little more expensive than their regular broccoli or store-bought fresh broccoli, but it's very easy to prepare and it's always good.

10 posted on 10/19/2005 5:18:37 PM PDT by AZLiberty (Winning isn't everything -- it's also about humiliating your opponent.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Dan Nunn
If I had the choice between Tom Thumb, and H.E. Butt, well, I don't know...

The HEBs in Dallas are "Central Market" format. Very high end. No regular cereal or canned goods for example, but all of the exotic, luxury and import items you can imagine.

11 posted on 10/19/2005 5:24:08 PM PDT by PAR35
[ Post Reply | Private Reply | To 2 | View Replies]

To: Clemenza

I grew up in Texas and have lived in Missouri and now Louisiana. I miss my HEB!!


12 posted on 10/19/2005 5:24:44 PM PDT by LA Woman3
[ Post Reply | Private Reply | To 8 | View Replies]

To: labette
is Safeway still union?

I don't know about the ones in Texas. The ones in Calif. are.

13 posted on 10/19/2005 5:25:37 PM PDT by PAR35
[ Post Reply | Private Reply | To 3 | View Replies]

To: AZLiberty



Exactly what they are doing to the Vons and Pavillions stores in So Cal....They had a case of bottled water for $49! Now reduced to $42! I buy whatever I can at Wal-Mart when I am up in my brother's neighborhood, and only fresh stuff at Vons....the meat prices are insane.

>>>I used to shop pretty regularly at the Safeway in Tempe, but lately they've converted all their stores to the "lifestyle" stuff. What this means is they laid down rough wood floors in the produce department, and raised their prices 20%.


14 posted on 10/19/2005 5:33:12 PM PDT by BurbankKarl (I am the NRA)
[ Post Reply | Private Reply | To 10 | View Replies]

To: PAR35

Perhaps H.E. Butt Grocery Co. will just merge with Piggly-Wiggly. The Wiggly-Butt stores would be hard to compete with.


15 posted on 10/19/2005 5:48:31 PM PDT by Doctor Stochastic (Vegetabilisch = chaotisch ist der Charakter der Modernen. - Friedrich Schlegel)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Hodar

When you get back ping. You'll like #15 I'm sure!


16 posted on 10/19/2005 5:51:07 PM PDT by zlala ("History does not long entrust the care of freedom to the weak or timid." -Dwight D. Eisenhower)
[ Post Reply | Private Reply | To 15 | View Replies]

To: Doctor Stochastic

Thanks for the laugh. I really did LOL.


17 posted on 10/19/2005 5:54:55 PM PDT by Texan
[ Post Reply | Private Reply | To 15 | View Replies]

To: Doctor Stochastic

Thanks for the laugh. I really did LOL.


18 posted on 10/19/2005 5:55:58 PM PDT by Texan
[ Post Reply | Private Reply | To 15 | View Replies]

To: AZLiberty

[but lately they've converted all their stores to the "lifestyle" stuff. What this means is they laid down rough wood floors in the produce department, and raised their prices 20%.]

They did exactly that at the store in our Seattle burb. Not sure who they're aiming at, but it's not us. There are better upscale markets and also better giant discount markets nearby. We don't go there half as often as before.


19 posted on 10/19/2005 6:08:46 PM PDT by shteebo
[ Post Reply | Private Reply | To 10 | View Replies]

To: Dan Nunn

Wish we had some choices. HEB drove all the competition out of town in the Waco market. We have HEB and Super WalMart. Oh, and one older, smaller, overpriced Albertson's.


20 posted on 10/19/2005 6:25:38 PM PDT by McLynnan
[ Post Reply | Private Reply | To 2 | View Replies]

To: PAR35

All I can say is, the Onstead family made out like Bandits!


21 posted on 10/19/2005 6:28:18 PM PDT by BnBlFlag (Deo Vindice/Semper Fidelis)
[ Post Reply | Private Reply | To 1 | View Replies]

To: labette

Safeway also pulled out of my state about 15-20 years ago. I wonder how many states they can pull out of before they run out of states?


22 posted on 10/19/2005 6:29:18 PM PDT by jim_trent
[ Post Reply | Private Reply | To 3 | View Replies]

To: PAR35
Safeway quality at Simon David prices.

LOL. We say that in Tarrant County, too.

For those unaware, Simon David is a high-end luxury/gourmet/kosher supermarket that is operated by the Safeway (formerly Tom Thumb) chain. It's sort of the Neiman-Marcus of grocery stores -- nice, but pricey.

Tom Thumb hasn't been Tom Thumb since the company sold out to Randall's. I miss the Tom Thumb advertising mascot, too.

Nowadays we shop at Fiesta for everyday foods, Central Market for gourmet.

23 posted on 10/19/2005 6:41:10 PM PDT by B-Chan (Catholic. Monarchist. Texan. Any questions?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: jim_trent
Safeway also pulled out of my state about 15-20 years ago. I wonder how many states they can pull out of before they run out of states?

You can't catch me with that trick question. They pulled out of Texas several decades ago as well. After taking a loss on that, they overpaid to get back in the market in time to already have take a three quarter of a billion dollar write-down in the face of Wal-Mart.

So do you only count once for each state they pull out of, or will you count each time they pull out of a state.

24 posted on 10/19/2005 7:49:02 PM PDT by PAR35
[ Post Reply | Private Reply | To 22 | View Replies]

To: PAR35

Safeway is my favorite store here in Phoenix. They just went through a major renovation and the quality of the food and the variety is fabulous! Prices are in keeping with the other major stores here in town. If they remake them in Texas like they did here, your going to really like it.


25 posted on 10/19/2005 8:00:21 PM PDT by McGavin999 (We're a First World Country with a Third World Press (Except for Hume & Garrett ))
[ Post Reply | Private Reply | To 1 | View Replies]

To: altura
I love my Tom Thumb Flagship store. I will be totally bummed if it closes.

The one at Beltline and Preston? It wasn't on the list. It was really nice when Tom Thumb built it, but the one time I went in there after Safeway bought them, it wasn't what it had been.

26 posted on 10/19/2005 8:23:28 PM PDT by PAR35
[ Post Reply | Private Reply | To 9 | View Replies]

To: PAR35

No trick intended. I know nothing about the details in Texas. The state I was talking about was Nebraska. They pulled out of there 15-20 years ago and never came back. I understand that they pulled out of some other midwestern states back then, too (like Kansas and possibly Iowa).


27 posted on 10/20/2005 5:24:56 AM PDT by jim_trent
[ Post Reply | Private Reply | To 24 | View Replies]

To: PAR35

No, the one in Las Colinas. But the sig other tells me it's not on the list.


28 posted on 10/20/2005 6:38:08 AM PDT by altura (T.G.I.B.)
[ Post Reply | Private Reply | To 26 | View Replies]

To: labette

> Our local Safeway died twenty years ago, maybe more.
Back then, they were union. Check-out girls made about twelve bucks an hour, compared to five dollars or so everywhere else. The stores were clean, but the other chain stores could clean their clock on price.
This was the days before the Wal-Mart super centers.{Locally} I'm curious, is Safeway still union?

One of my first jobs was at Safeway. I can tell you that no cheker made $20, then or now. Also back then, I was an idiot. I didn't cross a picket line and got locked out. Union told me to go down to the docks. I made $18 an hour (circa 85) like everybody on the docks. Easiest work in my life. So, any myths about them making $20/hr are just that. I wanna say $11.50-ish.

Ironic, you're paying fairly decent union dues and making no more than in comparable non-union shops. The UFCW is a joke as far as real union activity goes. That didn't keep them from backing off on dues. Oh yeah, the rep comes into the store twice a month and flirts with the good looking girls, gets back into his new car to go to another store to be charming.


29 posted on 10/20/2005 10:10:57 AM PDT by Rate_Determining_Step (US Military - Draining the Swamp of Terrorism since 2001!)
[ Post Reply | Private Reply | To 4 | View Replies]

To: labette
The Randalls (Safeway) near me is nonunion.
It is one of the ones that are closing.
The Krogers across the street had lower prices and much better business.
Plus, Krogers better paid union employees are friendlier and more helpful.
Randalls was scraping the bottom of the barrel and charging too much.
30 posted on 10/20/2005 1:42:12 PM PDT by Willie Green (Go Pat Go!!!)
[ Post Reply | Private Reply | To 4 | View Replies]

To: McGavin999; PAR35; B-Chan

Some TX news coming soon.


31 posted on 03/25/2010 11:58:53 PM PDT by txhurl
[ Post Reply | Private Reply | To 25 | View Replies]

To: PAR35

The Obama economy continues - more people losing their jobs.


32 posted on 03/26/2010 12:19:50 AM PDT by KC_Conspirator
[ Post Reply | Private Reply | To 1 | View Replies]

To: txhurl

What? Again?


33 posted on 03/26/2010 4:10:10 AM PDT by B-Chan (Catholic. Monarchist. Texan. Any questions?)
[ Post Reply | Private Reply | To 31 | View Replies]

To: txhurl

What news?


34 posted on 04/08/2010 8:47:20 PM PDT by Paulianism
[ Post Reply | Private Reply | To 31 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson