X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

PLEASANTON, CA-With its competitors reducing their growth plans, Safeway Inc. is cutting back its store expansion and remodels this year, executives said at the company’s first quarter conference call.

The company plans to open 10 new units and complete approximately 100 remodels, reducing capital expenditures from $1.2 billion to approximately $1 billion.

“We are seeing the smallest competitive new stores program against us I have seen in 17 years,” said Steve Burd, chairman, president and CEO. “It’s a good thing for us to back off of our capital a bit.”

For the quarter, total sales were $9.2 billion, down 7.6% from the first quarter of 2008, due in large part to a shift in holiday sales, lower fuel prices and a decline in the Canadian exchange rate. Identical-store sales, excluding fuel, declined 0.7%. Net income was $144.2 million, compared to net income of $193.4 million in the prior-year quarter.

Safeway operates 1,737 stores in the United States and Canada.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.