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Safeway Reports 4Q Loss of $1 Billion
AP via Austin American-Statesman ^ | 2/6/03 | MICHAEL LIEDTKE

Posted on 02/06/2003 6:40:35 PM PST by PAR35

SAN FRANCISCO (AP)--Slumping supermarket giant Safeway Inc. reported a fourth-quarter loss Thursday of $1.05 billion, reflecting the grocer's continuing headaches with two major acquisitions in Texas and Illinois.

The loss of $2.37 per share for the October-December period contrasted with a profit of $353.6 million, or 70 cents per share, the previous year.

Fourth-quarter sales totaled $10.01 billion, up from $9.93 billion a year earlier.

Safeway absorbed $1.5 billion in fourth-quarter charges to account for troubles at two grocers, Houston-based Randall's and Chicago-based Dominick's, that it bought for a total of $2.5 billion during the late 1990s.

{snip}

Besides sustaining losses on the Randall's and Dominick's deals, Safeway battled sagging sales in a sluggish economy that tightened household budgets and drove more shoppers to buy groceries at discounters such as Wal-Mart and Target.

{snip}

(Excerpt) Read more at austin360.com ...


TOPICS: Business/Economy; Front Page News; News/Current Events
KEYWORDS: dominicks; groceries; randalls; safeway; target; tomthumb; walmart
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With losses like these, Safeway's management should be running an airline.
1 posted on 02/06/2003 6:40:36 PM PST by PAR35
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To: PAR35
HEB is running them out of business in our town. Their prices are simply not competetive.
2 posted on 02/06/2003 6:48:21 PM PST by Clara Lou
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To: PAR35
that it bought for a total of $2.5 billion during the late 1990s.

3+ years and still a POS acquisition. I guess they done got suckered on that deal

3 posted on 02/06/2003 6:49:14 PM PST by evolved_rage (Kill a commie for mommie)
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To: PAR35
all the safeway's employees being rude and contemptuous towards the customers probably doesn't aid their financial stability.
4 posted on 02/06/2003 6:49:40 PM PST by KantianBurke (Who are YOU to legislate with my hard earned $$$??)
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To: PAR35
I use to live in Safeway country.

Safeway has always had high prices.

Combine that with so-so merchandise and selection, snippy cashiers, dirty aisles.

Gee, a recipe for success. </SARCASM>

5 posted on 02/06/2003 6:50:55 PM PST by petuniasevan (Same thing is going on here in WI with Roundy's buying out markets and lowering quality)
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To: KantianBurke
http://www.slaveway.org/page518568.htm
6 posted on 02/06/2003 6:53:54 PM PST by evolved_rage (Kill a commie for mommie)
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To: KantianBurke
Well it looks like WalMart could take them over and still keep the employees with no retraining what so ever.
7 posted on 02/06/2003 7:21:59 PM PST by Karsus ((TrueFacts=GOOD, GoodFacts=BAD))
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To: PAR35
Shortly after Safeway bought out the Genuardi's markets (Philadelphia area), I stopped shopping there. Prices were consistently too high. The employees never seemed too happy about the changes either.
8 posted on 02/06/2003 7:45:59 PM PST by Think free or die
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To: petuniasevan
Wanna know what the Giant rooster said to the Safeway hen?
"There is no safe way." ....Oh dear, that joke is so old it has whiskers! ....However, the Safeway hen is sleeping peacefully tonight because the Food Lion just devoured the Giant rooster! Egad! That one's bad, too.
9 posted on 02/06/2003 8:31:45 PM PST by BrucefromMtVernon
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To: Think free or die
Yup...they redesigned the stores to promote "impulse buying" rather than a logical layout, stuck in a "pharmacy", dropped the grade of their meats from choice to select, hired a bunch of surly, snotty, spoiled kids, trucked in a bunch of low grade "Safeway" brands, dropped the number of cashiers working, and basically made a hash out of a store I was willing to pay a few extra dollars to shop at.

At the same time, ACME increased the quality of their meats and produce, improved their deli, bakery, meat and cashier service, cleaned up their aisles (and I mean spotless CLEAN)
and improved their customer service.

Guess where I shop? :)

Pathmark still sucks tho..guess they'll never learn.
10 posted on 02/06/2003 8:35:33 PM PST by FreeperinRATcage
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To: PAR35
Safeway is Von's here on the left coast. It is by far the most expensive and least practical store -- and I don't mean in a foofy, upscale "gourmet" way.
11 posted on 02/06/2003 8:58:51 PM PST by lainie
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To: PAR35
Headlines: Safeway goes the way of Piggly Wiglly.
12 posted on 02/06/2003 9:00:14 PM PST by Happy2BMe (It's All About You - It's All About Me - It's All About Being Free!)
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To: PAR35
Safeway recently expirimented with an in-store bank, which my wife and I used. It was mostly automated and they always had some dufus hanging around in a blazer, who didn't know the answers to any questions you might ask. I guess the bank didn't work out very well, because they mailed us a notice several months ago that they would only cater to people who kept several thousand dollar balances and were closing business to others as they switched ownership. Not being one of the wealthy they were seeking, we removed our funds by the closing date, leaving a balance of 2 cents. Since then, we have continued to receieve statements and notices on the status of our accounts. They must have spent about $20 on all of the paper and postage for this.
13 posted on 02/06/2003 9:03:55 PM PST by Types_with_Fist
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To: PAR35
Safeway ruined Tom Thumb, formerly the best grocery store chain ever. Higher prices, more limited selection, crappy house brands, and crabby, low-paid, unsatisfied employees are not a recipe for success.

(They quit carrying Boar's Head® brand deli products, too.)

My family has been ahopping at Tom Thumb since the '50s. We shop at Kroger or Central Market now.
14 posted on 02/06/2003 10:33:48 PM PST by B-Chan (Ad Astra Per Ardua)
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To: PAR35
Whatever chain Safeway touches they destroy.

I deal alot with Safeway Corporate and they are complete and utter idiots.
15 posted on 02/06/2003 10:49:49 PM PST by Kay Soze
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Comment #16 Removed by Moderator

To: B-Chan
Safeway ruined Tom Thumb

What is the new slogan? Safeway quality at Simon David prices.

17 posted on 02/07/2003 8:20:56 AM PST by PAR35
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To: Types_with_Fist
Safeway recently expirimented with an in-store bank,

The Canadians were operating it under contract (as well as the banks at Winn-Dixie) and decided to bail out. The larger accounts went to "E-Trade Bank".

FR had the full story on this back in November:

CIBC to close U.S. electronic banking operations (Safeway Select Bank, Marketplace Bank)
http://www.freerepublic.com/focus/news/789020/posts

18 posted on 02/07/2003 8:32:26 AM PST by PAR35
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To: PAR35
Not surprised, Safeway sucks.
19 posted on 02/07/2003 8:34:17 AM PST by bmwcyle (Semper Gumby - Always Flexable)
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To: bmwcyle
Safeway does suck! I worked there for many years and they treat their employees like crap! I'm not surprised they are failing. Their prices are WAY too high and they think if they force their employees to smile that it will make you want to shop there and pay their high prices. It's obvious that people aren't that stupid.
I hope they go out of business.
20 posted on 04/17/2003 8:10:10 PM PDT by safeway suks
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To: safeway suks
Safeway has a corporate drone mentality, while worshiping the profits, they treat their employees like sh*t.
21 posted on 04/17/2003 8:16:46 PM PDT by Joe Hadenuf
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To: Clara Lou
Their prices are simply not competetive.

= Massive top heavy union structures sucking them dry

same story, different book jacket

22 posted on 04/17/2003 8:18:23 PM PDT by antaresequity (...)
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To: B-Chan
Safeway ruined Tom Thumb, formerly the best grocery store chain ever

Same here, they took VONS over, which I used to patronize because of some exclusive stuff the were famous for...after Safeway take over everything went down the tubes service wise and the prices went sky high.
My wife and I just stopped buying there...the store stinks!

23 posted on 04/17/2003 8:25:41 PM PDT by danmar
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To: Karsus
Well it looks like WalMart could take them over and still keep the employees with no retraining what so ever.

kAcknor Sez:

That's a fact, and it's not the fault of anyone but the compeditors IMO.

I no longer live in Saveway country, but we have Kroger, Big Bear, and something called Giant Eagle. All three of them started this bogus "Savings Card" program.  You get the card, present it at checkout, and get 'Huge Savings' over the 'regular' prices. The entire thing is nothing but a scam to overcharge those that refuse to be profiled and tracked in everything they purchace.

$1.99 for a gallon of milk with the card! Small print: $3.50 regular price. The entire store in a similar way.  The times when I have forgotten the card, it's a hassle+ to choose to borrow one, or fill out a new application, holding up the line or spending the extra 3 to 5 bucks.

I have stopped shopping in any of them, with the exception of three common items that Koger has that are better.

I go to Walmart even if it's a few miles farther. No cards, no tracking, no hassles, and the prices are as good or better than the card price.

"tIqIpqu' 'ej nom tIqIp" (Hit them hard and hit them fast.)

Have you checked the *bang_list today?

24 posted on 04/17/2003 9:11:50 PM PDT by kAcknor
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To: PAR35
Safeway's prices are out of sight. I usually shop at a local supermarket, not a chain, named Lundardi's. Their prices are lower, their meat and produce is far better, and the service is first rate. They have a full-service butcher counter. They hang and age their own beef. The fish is fresh. They also have a wonderful deli.
25 posted on 04/17/2003 9:16:05 PM PDT by .38sw
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To: PAR35
Hmmm. For whatever strange frickin reason, the Safeway in my neighborhood is OUTSTANDING. The service is TREMENDOUS, it is clean, convenient, and I just can't complain. Other Safeways have had problems that other mentions, but mine is just the shining example of what a store should be. I wrote the mgmt a letter in fact, and said they should do a case study on this location.
26 posted on 04/17/2003 9:22:50 PM PDT by Professional
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To: Chad Fairbanks
Ping...and I can't wait to tell my husband this. : )
27 posted on 04/17/2003 9:26:17 PM PDT by DaughterOfAnIwoJimaVet (Did you liberals say something? It's all just clicks and buzzes over here.)
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To: Types_with_Fist
Not being one of the wealthy they were seeking, we removed our funds by the closing date, leaving a balance of 2 cents.

My E-Trade account has a balance of 1 cent and I have been getting statements for two years.

(I withdrew the money and put it in a bear fund).

At one percent interest I don't expect that penny to amount to much during my lifetime.

28 posted on 04/17/2003 9:32:16 PM PDT by steve86 (O.J. did it.)
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To: Professional
I have to say that the Safeway near us is excellent also, although prices are higher than some (but not all).
29 posted on 04/17/2003 9:34:21 PM PDT by steve86 (O.J. did it.)
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To: lainie
Safeway is Von's here on the left coast.

Safeway is Safeway on the North left coast.

30 posted on 04/17/2003 9:35:42 PM PDT by steve86 (O.J. did it.)
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To: Professional
I'm with you -- my Safeway rocks here in Berkeley, CA!

The checkers are the most friendly around, the prices are great, the lines used to be bad, but the management fixed that, they have unbelievably cheap beer prices, and great chicken wings at the deli.

The Safeway here makes it a practice of employing retarded adults as baggers, and they are far more friendly and competent than your typical punk teenage bagger.

There, I've had my say.

31 posted on 04/17/2003 9:36:44 PM PDT by Monti Cello
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To: KantianBurke
Man, not where I live. The Safeway employees here in AZ go through some kind of training. I almost exclusively shop at the Safeway across the street from me because their customer service is incredible.

Everyone person in that store says hi to me and asks if they can help me find something. Some times I hear it several times while I'm in the store. When I can't find something I've had clerks practically take me by the hand to the item, pull it off the shelf and hand it to me. Every cashier and bagger is instructed to thank customers by name after checkout. And almost all of them smile and are friendly. If If I want less friendly service, poor quality deli items and lower prices I can go next door to Fry's.

Safeway is a little higher priced, but I only buy stuff on sale or,"buy on get one free" items.

I have almost no complaints about them.

32 posted on 04/17/2003 9:41:45 PM PDT by valleygal
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To: Monti Cello; Professional
The Safeway in our neighbor IS clean, service is good, checkers and baggers are friendly enough, but their prices really are high. I shop there when I don't have the extra time to go to Lunardi's.
33 posted on 04/17/2003 9:42:47 PM PDT by .38sw
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To: B-Chan
Safeway ruined Tom Thumb, formerly the best grocery store chain ever. Higher prices, more limited selection, crappy house brands, and crabby, low-paid, unsatisfied employees are not a recipe for success.

Well, the two Tom Thumbs we patronize in Bedford and Grapevine are WONDERFUL! Prices are low, stores are stocked, double and triple coupons, and friendly help.

Kroger's a good store as well, but my wife prefers the Tom Thumb (plus, they've got fresh sushi in the deli).

34 posted on 04/17/2003 9:53:39 PM PDT by sinkspur
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To: lainie
believe it or not, vons was the 1st supermarket in the united states, beginning in 1941 or 42 in los angeles by the vons brothers.

in the late 80's safeway, of the san francisco area, was hemorrhaging from resisting a dart group (washington, d.c.) attempted takeover. safeway had to borrow billions to stay independent. so, vons in socal bought the ventura, los angeles, orange, riverside, san bernadino, and san diego counties stores from safeway, giving the latter badly-needed cash.

in the mid-1990's safeway had returned to profitability, and then vons was in trouble. so safeway bought vons, regaining its former stores and the old vons, as well.

unlike alberstons which bought lucky's, safeway had enough sense to keep the old vons name. albertsons destroyed probably 500 million dollars of accumulated advertising by dropping the lucky's name. for decades stephanie edwards, of the rose parade fame, had advertised for lucky's. when she yelled sou-ee, the ladies came shopping in droves! albertson is hated by their employees. in order to buy some luckys, albertson was forced to sell some stores to stater brothers by the state of california.

alpha beta bit the dust to ralphs, and ralphs in turn was purchased by kroger. kroger feared that safeway was out to buy them, so they bought ralphs to keep safeway at bay. kroger got king soopers in colorado a long time ago, and the phoenix chain, the name i forget, also.

these socal chains were large--200-300 stores, some of them larger than national chains. but all of that is gone now; kroger, albertsons, and safeway rule the roost...that is, until walmart unseats them. already $18.00 an hour union clerks at albertsons in socal are worried that the chains will demand lowering their wages to compete against walmart.
35 posted on 04/17/2003 10:11:12 PM PDT by liberalnot
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To: Monti Cello
We also have some "disabled" employees at our store. They also have a number of retirees, that I assume lost all their money in the stock market, or got bored of sitting at home. Those folks are my favorite, and probably a sign of the times. Imagine McDonalds being run by seniors?! What an improvement THAT would be. I could see a bunch of highschool kids griping about being replaced by "grandpa".
36 posted on 04/19/2003 4:24:47 PM PDT by Professional
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To: Think free or die
Genuardi's used to be great. And Safeway was not suckered in that purchase.
37 posted on 04/19/2003 4:27:59 PM PDT by Tribune7
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To: Temple Owl
ping
38 posted on 04/19/2003 4:29:26 PM PDT by Tribune7
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To: KantianBurke
all the safeway's employees being rude and contemptuous towards the customers probably doesn't aid their financial stability.

They seem all right to me, and I shop there all the time. Maybe it's a regional thing?

39 posted on 04/19/2003 4:35:39 PM PDT by JoeSchem
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To: PAR35
Borrow the money from China. The "boom" over the last 40 years has all been debt financed anyway! Remember the Weimar Republic? Their "boom" was financed by the U.S. of A.
While it lasted!
40 posted on 04/19/2003 4:38:19 PM PDT by AEMILIUS PAULUS (Further, the statement assumed)
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To: petuniasevan
Safeway has always had high prices.

Combine that with so-so merchandise and selection

Every time I've done comparison shopping, Safeway has come out ahead. I'm not being an apologist; I'm simply wondering if there's some regional variation here. If you can find Banquet frozen dinners for less than $1 in the Greater Seattle area, let me know.

41 posted on 04/19/2003 4:38:28 PM PDT by JoeSchem
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To: Joe Hadenuf
Wegmans is rated number one in the country. I have never seen any chain bigger or smaller that could match them.
42 posted on 04/19/2003 4:42:06 PM PDT by cynicom
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To: Monti Cello
>>The Safeway here makes it a practice of employing retarded adults as baggers, and they are far more friendly and competent than your typical punk teenage bagger.

There's an interesting societal story in that line. It isn't pretty.
43 posted on 04/19/2003 4:50:20 PM PDT by FreedomPoster
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To: JoeSchem
I lived in Northern California when I made the comparison.

Even Albertson's was cheaper more often than not.
Lucky's was cheaper (though their selection was iffy).
Raley's had better selection and quality for the price.


Fred Meyer, while it existed in Chico, had them all beat.
44 posted on 04/19/2003 6:05:10 PM PDT by petuniasevan (I'm a lefty. Left-handed. The only kind of lefty I've ever been.)
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To: FreeperinRATcage
I used to go to Genaurdi's. Now I go to Acme. You are right. They are clean stores with excellent merchandise at competitive prices. And the employees for the most part are helpful and courteous.
45 posted on 04/19/2003 7:09:42 PM PDT by Temple Owl
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To: liberalnot
believe it or not, vons was the 1st supermarket in the united states, beginning in 1941 or 42 in los angeles by the vons brothers.

Following a concept pioneered by Piggly Wiggly more than 20 years earlier:

" the first Piggly Wiggly opened September 6, 1916 at 79 Jefferson Street in Memphis. Operating under the unusual name Piggly Wiggly, it was unlike any other grocery store of that time. Shopping baskets, open shelves, no clerks to shop for the customer -- unheard of!"
http://www.pigglywiggly.com/cgi-bin/customize?aboutus.html

46 posted on 04/19/2003 7:39:01 PM PDT by PAR35
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To: kAcknor
Walmart has crappy meat and some of the prices are high. I hope we don't lose all the stores but Walmart.
47 posted on 04/19/2003 7:47:41 PM PDT by Big Horn
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To: PAR35
i remember going to a piggly wiggly with my relatives in colorado about 1951-53.

it was much like what we expect these days in supers, but it lacked a bakery, deli, etc., which the authors of the vons article cite as a requirements for a "supermarket", developed by the vons brothers in 1941.

so, there you have it.
48 posted on 04/19/2003 7:57:44 PM PDT by liberalnot
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To: petuniasevan
Is this the store that has the customer cards that keep track of your purchases?
49 posted on 04/19/2003 8:02:42 PM PDT by plusone
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To: plusone
Many if not most stores use customer cards now.

Detractors point out "They keep track of what you purchase!"

Well, of course they do. How else will they know what to order for inventory replenishment? More to the point, how else can they keep close tabs on the various factors in their customer base: Buying habits, age groups by percentage, neighborhoods, average amount purchased, grocery categories purchased, peak times for various categories, holiday shopping habits, etc.

I've noticed that supermarkets have fuller shelves, better selection, and quicker response to customer feedback within the last few years. It's a dog-eat-dog world in grocery retail - any way to gain the edge over your competition is welcomed.

Are you old enough to remember in the 1970s the dingy, badly-stocked markets? Remember the glum union stockboys stamping prices on cans of peas?

No, those weren't the "good old days".
50 posted on 04/19/2003 8:15:23 PM PDT by petuniasevan (I'm a lefty. Left-handed. The only kind of lefty I've ever been.)
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