CHICAGO-Safeway Inc. reported on Thursday that it intends to sell its struggling 72 Dominick's supermarkets in the Chicago area.
Safeway President and CEO Robert Edwards in a conference call with Wall Street analysts Thursday evening characterized the Chicago market as "fragmented" and related that increased competition also played a part in Dominick's Chicago stores being the lowest performers in the company, according to the Chicago Tribune. Safeway is headquartered in Pleasanton, CA.
"We'd love to find a buyer for 72 stores, but it probably will play out in pieces," Edwards said, adding that the stores are a liability and a money-loser.
"While these decisions are always difficult to make, the disposition of our assets in the Chicago market will eliminate a noticeable drag on our financial results and a significant gain on our resources, allowing us to focus on our remaining operations," he said.
Most of the 72 Dominick's locations are leased. Safeway reported it had sold four Dominick's to the operator of Jewel-Osco stores at 1340 S. Canal St. and 2550 N. Clybourn Ave. in Chicago; 14200 S. Bell Road in Homer Glen; and 1340 Patriot Blvd. in Glenview. See story in the Chicago Tribune.
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