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
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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.
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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.
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(Excerpt) Read more at dallasnews.com ...
All I can say is, the Onstead family made out like Bandits!
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?
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.
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.
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.
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.
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).
No, the one in Las Colinas. But the sig other tells me it's not on the list.
> 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.
Some TX news coming soon.
The Obama economy continues - more people losing their jobs.
What? Again?
What news?
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