Safeway Reports 4Q Loss of $1 Billion

AP via Austin American-Statesman ^ | 2/6/03 | MICHAEL LIEDTKE

[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}

[Joe Hadenuf]

Safeway has a corporate drone mentality, while worshiping the profits, they treat their employees like sh*t.

[antaresequity]

Their prices are simply not competetive.

= Massive top heavy union structures sucking them dry

same story, different book jacket

[danmar]

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!

[kAcknor]

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?

[.38sw]

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.

[Professional]

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.

[DaughterOfAnIwoJimaVet]

Ping...and I can't wait to tell my husband this. : )

[steve86]

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.

[steve86]

I have to say that the Safeway near us is excellent also, although prices are higher than some (but not all).

[steve86]

Safeway is Von's here on the left coast.

Safeway is Safeway on the North left coast.

[Monti Cello]

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.

[valleygal]

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.

[.38sw]

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.

[sinkspur]

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).

[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.

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.

[Professional]

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".

[Tribune7]

Genuardi's used to be great. And Safeway was not suckered in that purchase.

[Tribune7]

ping

[JoeSchem]

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?

[AEMILIUS PAULUS]

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!