Dominick's, once a leader in the region, has steadily lostmarket share to area competitor Jewel since Safeway acquired thechain in 1998, says Pewaukee, WI-based grocery analyst DavidLivingston. At the time of the transaction, Dominick's operated 112stores.

"It just didn't work out for them," Livingston says of theSafeway transaction. "They're not getting back to where they werebefore."

For its part, Dominick's is trying to attract consumers with itsnew "lifestyle" format stores, which include expanded selections offresh and organic foods, as well as deli and seafood offerings andother features. Last year, 20 of the chain's units were remodeledinto "lifestyle" stores and a new location opened in Chicago'sStreeterville neighborhood. Another new unit is set to open inChicago this year, and there are 20 more remodels on tap for theremainder of 2007, bringing half the chain to the upgradedconcept.