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}

[PAR35]

With losses like these, Safeway's management should be running an airline.

[Clara Lou]

HEB is running them out of business in our town. Their prices are simply not competetive.

[evolved_rage]

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

[KantianBurke]

all the safeway's employees being rude and contemptuous towards the customers probably doesn't aid their financial stability.

[petuniasevan]

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>

[evolved_rage]

http://www.slaveway.org/page518568.htm

[Karsus]

Well it looks like WalMart could take them over and still keep the employees with no retraining what so ever.

[Think free or die]

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.

[BrucefromMtVernon]

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.

[FreeperinRATcage]

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.

[lainie]

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.

[Happy2BMe]

Headlines: Safeway goes the way of Piggly Wiglly.

[Types_with_Fist]

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.

[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.

(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.

[Kay Soze]

Whatever chain Safeway touches they destroy.

I deal alot with Safeway Corporate and they are complete and utter idiots.

[PAR35]

Safeway ruined Tom Thumb

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

[PAR35]

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

[bmwcyle]

Not surprised, Safeway sucks.

[safeway suks]

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.