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Safeway is an American
supermarket A supermarket is a self-service Retail#Types of outlets, shop offering a wide variety of food, Drink, beverages and Household goods, household products, organized into sections. This kind of store is larger and has a wider selection than earli ...
chain founded by
Marion Barton Skaggs Marion Barton Skaggs (April 5, 1888 – May 8, 1976) was an American businessman and leading member of the Skaggs Family of retailers who expanded the predecessor of Safeway into a major supermarket chain. Career Skaggs was an advocate of the c ...
in April 1915 in American Falls, Idaho. The chain provides grocery items, food and general merchandise and features a variety of specialty departments, such as bakery, delicatessen, floral and pharmacy, as well as
Starbucks Starbucks Corporation is an American multinational chain of coffeehouses and roastery reserves headquartered in Seattle, Washington. It is the world's largest coffeehouse chain. As of November 2021, the company had 33,833 stores in 80 c ...
coffee shops and fuel centers. It is a
subsidiary A subsidiary, subsidiary company or daughter company is a company owned or controlled by another company, which is called the parent company or holding company. Two or more subsidiaries that either belong to the same parent company or having a s ...
of Albertsons after being acquired by
private equity investors In the field of finance, the term private equity (PE) refers to investment funds, usually limited partnerships (LP), which buy and restructure financially weak companies that produce goods and provide services. A private-equity fund is both a ty ...
led by Cerberus Capital Management in January 2015. Safeway's primary base of operations is in the Western United States with some stores located in the Mid-Atlantic region of the Eastern Seaboard. The subsidiary is headquartered in Pleasanton, California, with its parent company, Albertsons, headquartered in Boise, Idaho. Safeway stores operate under the logo of a stylized white "S" inside a rounded red square with the slogan "Ingredients for life". Following the organics trend, the stores have expanded the number of organic fruits and vegetables in the produce section and offer other items under the "O Organics" label. Stores may have a
Starbucks Starbucks Corporation is an American multinational chain of coffeehouses and roastery reserves headquartered in Seattle, Washington. It is the world's largest coffeehouse chain. As of November 2021, the company had 33,833 stores in 80 c ...
, a deli counter, a meat department, a produce section, a flower department, a bakery, a pharmacy, a liquor section, and/or many
aisles Aisles is a six-piece progressive rock band originally from Santiago, Chile. The group was formed in 2001 by brothers Germán (guitar) and Luis Vergara (keyboards), and childhood friend Rodrigo Sepúlveda (guitar). Later on, it expanded to incl ...
of
nonperishable Food preservation includes processes that make food more resistant to microorganism growth and slow the oxidation of fats. This slows down the decomposition and rancidification process. Food preservation may also include processes that inhibit ...
items. The stores offer many in-house
private label brand A private label, also called a private brand or private-label brand, is a brand owned by a company, offered by that company alongside and competing with brands from other businesses. A private-label brand is almost always offered exclusively by th ...
s as well as
name brand A brand is a name, term, design, symbol or any other feature that distinguishes one seller's good or service from those of other sellers. Brands are used in business, marketing, and advertising for recognition and, importantly, to create an ...
s across all product categories.


History

In 1915, S.M. Skaggs, a Baptist minister, was convinced that the prevailing system of allowing customers to buy food from stores on credit increased prices, because grocers and storekeepers had to wait to get paid, and it made the customers overly dependent on those grocers and storekeepers. He described selling items on credit as "the growing evil of installment purchasing". S.M. Skaggs established a store in American Falls, Idaho called Skaggs, and he sold groceries for cash at the time of sale. Skaggs was also against the prevailing high-cost system of the grocer having clerks serving all the needs of each customer. He was an early proponent of the self-service concept. Items were kept within the customers' reach, on shelves that hugged the walls, with aisles clear for customers to walk comfortably. Customers picked up baskets as they entered the store, selected what they wanted from the shelves, and paid for their purchases at a checkout counter.Ashcraft, Betty (April 24, 1963).
Burley Store Springboard for Huge Safeway
. ''The Herald-Bulletin'' (Burley, Idaho). p. 1C.
When S.M. Skaggs decided he wanted to focus on his Baptist ministry, his son
M.B. Skaggs Marion Barton Skaggs (April 5, 1888 – May 8, 1976) was an American businessman and leading member of the Skaggs Family of retailers who expanded the predecessor of Safeway into a major supermarket chain. Career Skaggs was an advocate of the c ...
purchased the grocery store from him for $1,088 (). His second store opened in
Burley, Idaho Burley () is a city in Cassia and Minidoka counties in southern Idaho, United States. The population was 10,345 at the 2010 census. The city is the county seat of Cassia County. Burley is the principal city of the Burley, Idaho, Micropolitan ...
, in 1918. By 1921, M.B. Skaggs owned multiple stores in Idaho and Montana. M.B. Skaggs moved to Portland, Oregon in 1921, and he established four groceries in town that year, in part by buying a grocer and a coffee company. The chain, which operated as two separate businesses, Skaggs Cash Stores and Skaggs United Stores, grew quickly, and Skaggs enlisted the help of his five brothers to grow the network of stores. M.B.'s business strategy, to give his customers value and to expand by keeping a narrow profit margin, proved spectacularly successful. By 1926, he had opened 428 Skaggs stores in 10 states. M.B. almost doubled the size of his business that year when he merged his company with 322 Sam Seelig Company stores and incorporated as Safeway, Inc., because he thought that a chain that would outlive him should not carry his name. The point of the name was that the grocery operated on a cash-and-carry basis – it did not offer credit, as grocers traditionally had done. It was the "safe way" to buy food because a family could not get into debt via its grocery bill (as many families did at the time, a contributing cause of the Great Depression). In 1926, Charles E. Merrill, the founder of the
Merrill Lynch Merrill (officially Merrill Lynch, Pierce, Fenner & Smith Incorporated), previously branded Merrill Lynch, is an American investment management and wealth management division of Bank of America. Along with BofA Securities, the investment bank ...
brokerage firm, saw an opportunity to consolidate the West Coast grocery industry. Towards this end, he purchased the 322-store Safeway chain of W.R.H. Weldon, who wished to exit retailing and concentrate on wholesale. Then, in June 1926, Merrill offered Skaggs either $7 million outright or $1.5 million plus 30,000 shares in the merged firm. Skaggs took the latter. On July 1, 1926, Safeway merged with the 673 stores from
Skaggs United Stores Skaggs Companies was the predecessor to many famous United States retailing chains, including Safeway, Albertsons, Osco Drug, and Longs Drugs. The company owned several drugstore chains, but all of them were sold. Skaggs Cos. became American ...
of Idaho and Skaggs Cash Stores of California. On completion of the Skaggs/Safeway merger, M. B. Skaggs became the Chief Executive of the business.Safeway Annual Report 1966, p2 Two years later, Skaggs listed Safeway on the New York Stock Exchange. In the 1930s, Safeway introduced produce pricing by the pound, adding "sell by" dates on perishables, nutritional labeling, and some of the first parking lots. The merger instantly created the largest chain of grocery stores west of the Mississippi.Alternate Link
via ProQuest.
In the 1930s, Charles E. Merrill temporarily left Merrill Lynch to help manage Safeway. At the time of the
merger Mergers and acquisitions (M&A) are business transactions in which the ownership of companies, other business organizations, or their operating units are transferred to or consolidated with another company or business organization. As an aspect ...
, the company was headquartered in Reno, Nevada. In 1929, it was relocated to a former grocery warehouse in Oakland, California. Safeway headquarters remained there until the move to Pleasanton, California in 1996. In the late 1930s, the New Negro Alliance boycotted the Sanitary Grocery Company (then a Safeway subsidiary) to pressure store owners to employ black people, especially in predominantly black neighborhoods. The Sanitary Grocery Company successfully sought an injunction against the New Negro Alliance, which was upheld by the Washington, D.C. Court of Appeals. This led to the 1938 landmark U.S. Supreme Court decision of ''
New Negro Alliance v. Sanitary Grocery Co. ''New Negro Alliance v. Sanitary Grocery Co.'', 303 U.S. 552 (1938), was a landmark decision of the US Supreme Court which affects US labor law, safeguarding a right to boycott and in the struggle by African Americans against discriminatory hiring ...
'', which defended the right to peaceful protest in the resolution of labor disputes. In 1969, the
Black Panther Party The Black Panther Party (BPP), originally the Black Panther Party for Self-Defense, was a Marxist-Leninist and black power political organization founded by college students Bobby Seale and Huey P. Newton in October 1966 in Oakland, Califo ...
and the United Farm Workers launched simultaneous boycotts of Safeway grocery stores, which were the largest grocery store chain in the U.S. West at that time. The Panthers boycotted due to Safeway's refusal to donate to their Free Breakfast for Children Program, created to serve daily hot breakfasts to underprivileged children throughout the U.S. The United Farm Workers boycotted Safeway because the chain continued to sell California grapes despite the union's nationwide boycott. The Panthers and United Farm Workers also acted in solidarity with each other's goals in boycotting Safeway, including during a 1973 Panthers demonstration outside an Oakland Safeway store documented by KPIX Eyewitness news, in which protestors carried signs that read "Boycott Safeway, Boycott Grapes."


Expansion

The initial public offering price of Safeway stock was $226 in 1927. A five for one split in 1928 brought the price down to under $50. Over the next few years, Charles Merrill, with financing supplied by
Merrill Lynch Merrill (officially Merrill Lynch, Pierce, Fenner & Smith Incorporated), previously branded Merrill Lynch, is an American investment management and wealth management division of Bank of America. Along with BofA Securities, the investment bank ...
, then began aggressively acquiring numerous regional grocery store chains for Safeway in a
rollup A rollup (also "roll-up" or "roll up") is a process used by investors (commonly private equity firms) where multiple small companies in the same market are acquired and merged. The principal aim of a rollup is to reduce costs through economies o ...
strategy. Early acquisitions included significant parts of
Piggly Wiggly Piggly Wiggly is an American supermarket chain operating in the American Southern and Midwestern regions run by Piggly Wiggly, LLC, an affiliate of C&S Wholesale Grocers. Its first outlet opened in 1916 in Memphis, Tennessee, and is notable f ...
chain as part of the breakup of that company by Merrill Lynch and
Wall Street Wall Street is an eight-block-long street in the Financial District of Lower Manhattan in New York City. It runs between Broadway in the west to South Street and the East River in the east. The term "Wall Street" has become a metonym for t ...
. Most transactions involved the swap of stock certificates, with little cash changing hands. Most acquired chains retained their own names until the mid-1930s. In 1929, there were rumors of a Safeway- Kroger merger.Alternate Link
via ProQuest.
The number of stores peaked at 3,400 in 1932, when expansion ground to a halt. The
Great Depression The Great Depression (19291939) was an economic shock that impacted most countries across the world. It was a period of economic depression that became evident after a major fall in stock prices in the United States. The economic contagio ...
had finally impacted the chain, which began to focus on cost control. In addition, numerous smaller grocery stores were being replaced with larger supermarket stores. By 1933, the chain ranked second in the grocery industry behind The Great Atlantic & Pacific Tea Company and ahead of Kroger. In 1935, Safeway sold its nine stores in Honolulu, Hawaii "because of the inconvenience of proper supervision".Alternate Link
via ProQuest.
Also in 1935, independent groceries in California convinced the California legislature to enact a progressive tax on chain stores. Before the act took effect, Safeway filed a petition to have the law put to a referendum. In 1936, the California electorate voted to repeal the law. In 1936, Safeway introduced a money back guarantee on meat. In November 2016, Safeway Inc. agreed to buy Andronico's remaining stores, which were based primarily in the San Francisco Bay Area. When Andronico's closed as an independent company, it had a total of nine locations: three in Berkeley (Solano Avenue, Telegraph Avenue, and Shattuck Avenue); one in the Rancho Shopping Center in Los Altos; one on Irving Street San Francisco; one at the Stanford Shopping Center in Palo Alto; one in Walnut Creek; one in Danville; and one in town of
San Anselmo San Anselmo () is an incorporated town in Marin County, California, United States. San Anselmo is located west of San Rafael, at an elevation of 46 feet (14 m). It is located about north of San Francisco. The town is bordered by San Rafael t ...
in Marin County. The stores began closing in January 2017, with the North Berkeley, California store closing first. In February 2019, Safeway said that it was considering bringing back the Andronico's name. By February 2020, six Safeway stores were operating under the Andronico's Community Market label, with a seventh planned. Four Andronico’s stores in the Bay Area were renamed Safeway Community Market after the 2016 acquisition, though the flagship store in the Sunset District kept the Andronico’s name. Another store in Monterey opened in January 2019 as Andronico’s. In February 2020, four locations of Safeway Community Markets returned to the Andronico’s name - two in Berkeley, one in Los Altos, and one in San Anselmo.


International expansion

The company expanded into Canada in 1929 with 127 stores (which became Canada Safeway Limited and which was sold to
Sobeys Sobeys Inc. is the second largest supermarket chain in Canada, with over 1,500 stores operating across Canada under a variety of banners. Headquartered in Stellarton, Nova Scotia, it operates stores in all ten provinces and accumulated sales o ...
in 2013); into the United Kingdom in 1962 (which became
Safeway plc Safeway is a British brand owned chain of supermarkets and convenience shops. Founded in 1962 by the American Safeway Inc., before being sold to Argyll Foods in 1987. It was later listed on the London Stock Exchange. It was purchased by Morrison ...
); into
Australia Australia, officially the Commonwealth of Australia, is a Sovereign state, sovereign country comprising the mainland of the Australia (continent), Australian continent, the island of Tasmania, and numerous List of islands of Australia, sma ...
in 1963 (which became
Safeway Australia Australian Safeway Pty Ltd (trading as Safeway Supermarkets) was a chain of supermarkets in Australia from 1963 to 2017. The supermarkets were initially part of Safeway Inc. but were absorbed by Woolworths Limited (now Woolworths Group) in ...
); and into West Germany in 1964. The company also has operations in Saudi Arabia and Kuwait in a licensing and management agreement with the Tamimi Group during the 1980s. In 1981, it acquired 49% of Mexican retailer Casa Ley. Safeway usually achieved international expansion by acquiring one or more small chains in a given country. It expanded into Saudi Arabia and Kuwait, however, through a joint venture. This initial nucleus of stores received Safeway systems and technology and then expanded organically. International chains acquired include:


1940s–1970s

In 1941, Marion B. Skaggs retired from the Safeway board of directors. In 1947, the company's sales exceeded $1 billion for the first time. By 1951, total sales had reached nearly $1.5 billion. The company adopted the S logo, which it still uses, in 1962. In 1955, Robert A. Magowan became Chairman of the Board of Safeway. Magowan had married Charles Merrill's daughter, Doris. Magowan also assumed the title of President in 1956. He remained President until 1968, and a member of the board until 1978. In 1966, Robert A Magowan brought his star Meat Processing Plant Manager, Michael F. Concannon to Oakland to become the Head of Meat Processing in North America. He retired in 1978 as well. Mike was instrumental in opening the Stockton plant. The Wichita plant and Meat Processing in Canada began in the 1970s. In 1959, Safeway opened its first store in the new state of Alaska—the first major food retailer to enter that market. The company opened three stores in
Anchorage Anchorage () is the largest city in the U.S. state of Alaska by population. With a population of 291,247 in 2020, it contains nearly 40% of the state's population. The Anchorage metropolitan area, which includes Anchorage and the neighboring Ma ...
and one in
Fairbanks Fairbanks is a home rule city and the borough seat of the Fairbanks North Star Borough in the U.S. state of Alaska. Fairbanks is the largest city in the Interior region of Alaska and the second largest in the state. The 2020 Census put the po ...
over the next several years. The store in downtown Fairbanks was built on the site of a
red-light district A red-light district or pleasure district is a part of an urban area where a concentration of prostitution and sex-oriented businesses, such as sex shops, strip clubs, and adult theaters, are found. In most cases, red-light districts are particu ...
, known as ''The Line,'' which operated for close to a half century. Most of these stores were in buildings constructed by Anchorage real estate developer
Wally Hickel Walter Joseph Hickel (August 18, 1919 – May 7, 2010) was an American businessman, real estate developer, and politician who served as the second governor of Alaska from 1966 to 1969 and 1990 to 1994 and as U.S. Secretary of the Interior from 1 ...
, who later became
governor of Alaska A governor is an administrative leader and head of a polity or political region, ranking under the head of state and in some cases, such as governors-general, as the head of state's official representative. Depending on the type of political r ...
and
U.S. Secretary of the Interior The United States secretary of the interior is the head of the United States Department of the Interior. The secretary and the Department of the Interior are responsible for the management and conservation of most federal land along with natural ...
. Also in 1959, the firm also opened the first "marina-style" store on the Marina in San Francisco. Hundreds of stores in this barrel-vaulted-roof style opened during the next decade. In 1961, the company sold its
New York New York most commonly refers to: * New York City, the most populous city in the United States, located in the state of New York * New York (state), a state in the northeastern United States New York may also refer to: Film and television * '' ...
operations to Finast. In 1963, Safeway again opened stores in Hawaii, having exited this market in 1934. It leased one store in Culver City to animator/filmmaker Don Bluth, who used it as a theater until 1967. In 1969, Safeway entered the Toronto market in Canada and the Houston market in Texas through opening new stores, rather than by acquisition. The firm ultimately failed against entrenched competition in both these markets. In 1977, Safeway management instituted a program to fight counterfeit $100 bills by, among other things, telling employees that bills that lacked the words "
In God We Trust "In God We Trust" (also rendered as "In God we trust") is the United States national motto, official motto of the United States and of the U.S. state of Florida. It was adopted by the U.S. Congress in 1956, replacing ("Out of many, one"), whic ...
" were counterfeit. Because Safeway had not sufficiently investigated the history of $100 bills, it was unaware that some bills still in circulation did not have the phrase. Eventually, an innocent shopper was incorrectly reported to Oakland, California, police for passing a "counterfeit" bill. He was arrested and strip-searched before Oakland police contacted the Treasury Department and realized the error. The 1981 jury verdict of joint and several liability for $45,000 against Safeway Stores and the City of Oakland was upheld in full by the
Supreme Court of California The Supreme Court of California is the highest and final court of appeals in the courts of the U.S. state of California. It is headquartered in San Francisco at the Earl Warren Building, but it regularly holds sessions in Los Angeles and Sacra ...
on December 26, 1986. In 1979, Peter Magowan, son of Robert Magowan and grandson of Charles Merrill, was appointed chairman and CEO of Safeway. Magowan managed Safeway for the next 13 years—presiding over the dramatic decline of the firm in terms of store numbers


1980s: Takeover and sell-offs

Following a hostile takeover bid from corporate raiders
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and
Robert Haft Robert Michael Haft is an entrepreneur, primarily in health care, and became a household name in the Washington, D.C., Chicago, San Francisco, Houston, and Los Angeles markets for his Crown Books television commercial tagline, "Books cost too much ...
, the chain was acquired by Kohlberg Kravis Roberts (KKR) acting as a
white knight A white knight is a mythological figure and literary stock character. They are portrayed alongside a black knight as diametric opposites. A white knight usually represents a heroic warrior fighting against evil, with the role in medieval literatu ...
in 1986. With the assistance of KKR, the company was taken private and assumed tremendous debt. To pay off this debt, the company began selling off a large number of its operating divisions. The divested domestic divisions of Safeway proved to be problematic for almost all those who acquired them. Essentially every purchasing entity hit financial troubles and either went bankrupt or was later acquired. (Hy-Vee and Fareway are the exceptions with the locations they acquired, having made them work.) The international stores were more successful for their acquirers.
Safeway plc Safeway is a British brand owned chain of supermarkets and convenience shops. Founded in 1962 by the American Safeway Inc., before being sold to Argyll Foods in 1987. It was later listed on the London Stock Exchange. It was purchased by Morrison ...
, the operator of the UK stores, was sold to Argyll Foods, which itself was ultimately absorbed by Morrisons in 2004.
Safeway Australia Australian Safeway Pty Ltd (trading as Safeway Supermarkets) was a chain of supermarkets in Australia from 1963 to 2017. The supermarkets were initially part of Safeway Inc. but were absorbed by Woolworths Limited (now Woolworths Group) in ...
was sold to the Australian-based Woolworths Limited in 1985. Safeway sold its stores in Southern California, including those in established markets like Los Angeles and San Diego, to The Vons Companies in 1988 in exchange for a 30 percent interest in the company. Safeway also scaled back its operations in Fresno,
Modesto Modesto () is the county seat and largest city of Stanislaus County, California, United States. With a population of 218,464 at the 2020 census, it is the 19th largest city in the state of California and forms part of the Sacramento-Stockton- ...
,
Stockton Stockton may refer to: Places Australia * Stockton, New South Wales * Stockton, Queensland, a locality in the Cassowary Coast Region New Zealand *Stockton, New Zealand United Kingdom *Stockton, Cheshire *Stockton, Norfolk *Stockton, Chirbu ...
, and Sacramento.
Save Mart Supermarkets The Save Mart Companies is an American grocery store operator founded and headquartered in Modesto, California. It owns and operates stores under the names of Save Mart, Lucky, Lucky California, FoodMaxx, and Maxx Value Foods. The stores are loc ...
purchased the few remaining Fresno Safeway stores in 1996. Many stores in the Eastern Division were also closed or sold in the 1987–1989 timeframe, including many recent additions in the DelMarVa Eastern Shore area. Safeway's national presence was now reduced to several western states and Northern California, plus the Washington, D.C. area. Altogether, nearly half the 2,200 stores in the chain were sold.


Expansion in the 1990s

The company was taken public again in 1990, with the Jordan stores sold to the Masri family in 1991. In December 2003, the Masri family sold it to The Sultan Center of Kuwait. The late 1990s and early 2000s once again saw Safeway rapidly expand into new territories under a variety of regional names. In 1997, Safeway bought out the rest of The Vons Companies, giving it Southern California stores once more. In 1998, Chicago-based Dominick's Finer Foods was acquired from Yucaipa Companies. While Safeway had stores in Alaska, in 1999 they bought
Carrs-Safeway Carrs–Safeway (formerly Carrs Quality Centers) is a supermarket chain that is based in Anchorage, Alaska, and is a subsidiary of Albertsons. It was acquired in April 1999 by former parent Safeway from an employee ownership group, who itself h ...
, with the same year bringing the purchase of Houston-based
Randall's Food Markets Randalls operates 32 supermarkets in Texas under the ''Randalls'' and ''Flagship Randalls'' banners. The chain consists of 13 stores located around the Houston area and 15 stores located around the Austin area as of May 2020. Randalls today forms ...
, which also had stores in Austin, Texas. Randalls also had stores in the Dallas-Fort Worth area through Randalls' other brand, Tom Thumb, along with gourmet grocery store Simon David. The purchase of Randalls also started the practice of Safeway-owned gas stations, as Randalls already had stations at their stores. In 2000, Safeway started grocery delivery operations and in 2001 acquired the family-owned Genuardi's chain, with locations in Pennsylvania, New Jersey, and Delaware. While Safeway also created the subsidiary
Blackhawk Network Blackhawk Network Holdings Inc. is an American privately held company that operates in the prepaid, gift card and payments industries. It sells branded physical and digital gifts, phones, prepaid debit, and incentives cards online and through ...
, a prepaid and payments network, a card-based financial solutions company, and a provider of third-party prepaid cards, around this time, Genuardi's would be the last grocery purchase Safeway would make.


Lifestyle stores

By the early 2000s, Safeway's expansion beyond the West Coast had been poorly received, citing Safeway's brands and West Coast-based buyers, with Dominick's on the sale block, and Randalls and Genuardi's losing market share. To reinvigorate the flagging divisions, increase brand involvement, and to differentiate itself from its competitor, Safeway began a $100 million brand repositioning campaign labeled "Ingredients for life" in 2005. The launch included a redesigned logo, a new slogan "Ingredients for life" alongside a four-panel life icon to be used throughout stores and advertising, and a web application called "FoodFlex" to improve consumer nutrition. Many locations are being converted to the "Lifestyle" format. The new look was designed by Michigan-based PPC Design. In addition to the "inviting decor with warm ambiance and subdued lighting", the move required heavy redesign of store layout, new employee uniforms, sushi and olive bars, and the addition of in-store
Starbucks Starbucks Corporation is an American multinational chain of coffeehouses and roastery reserves headquartered in Seattle, Washington. It is the world's largest coffeehouse chain. As of November 2021, the company had 33,833 stores in 80 c ...
kiosks (with cupholders on grocery carts). The change also involved differentiating the company from competitors with promotions based on the company's extensive loyalty card database. This would be the design going forward for new and remodeled stores. At the end of 2004, there were 142 "Lifestyle" format stores in the United States and Canada, with plans to open or remodel another 300 stores with this type of theme the following year. "Lifestyle" format stores have seen significantly higher average weekly sales than its other stores. By the end of 2006, shares were up, proving this rebranding campaign had a major impact on sale figures. In July 2007, the company stock rose on speculation that Sears Holdings Corporation was seeking to purchase Safeway.


Decline and sale to Albertsons

In 2012, the company dissolved the Genuardi's chain in the Philadelphia metro through a combination of store selloffs and closures. Giant acquired 15 of the chain's stores and made an offer for a 16th which was instead sold to a local chain, McCaffrey's, as part of an antitrust settlement. Weis also bought three Genuardi's locations. A number of unprofitable Genuardi's units also had closed in 2010 and 2011 as their leases expired. The Genuardi's stores in Wilmington, Delaware, were converted to the Safeway name in 2004 due to legal issues stemming from a union contract signed by the management of early Safeway stores in Delaware that closed in 1982. The current Safeway locations in Delaware are served by division offices in the Baltimore–Washington metropolitan area, where Safeway has long been a major grocer. In 2011, Safeway signed an agreement with UNFI, for the distribution to all of Safeway's banners in the United States for non-proprietary natural, organic and specialty products effective October 2011. In 2013, it was announced that Cerberus Capital Management were exploring a deal for all or part of Safeway. On June 12, 2013,
Sobeys Sobeys Inc. is the second largest supermarket chain in Canada, with over 1,500 stores operating across Canada under a variety of banners. Headquartered in Stellarton, Nova Scotia, it operates stores in all ten provinces and accumulated sales o ...
announced it would acquire Safeway's operations in Canada for
CAD$ The Canadian dollar (currency symbol, symbol: Dollar sign, $; ISO 4217, code: CAD; french: dollar canadien) is the currency of Canada. It is abbreviated with the dollar sign $, there is no standard disambiguating form, but the abbreviation Can ...
5.8 billion, subject to regulatory approval. The move will bolster its presence in Western Canada, where Safeway was predominant. Sobeys completed the sale five months later while keeping the Safeway banner on its newly acquired stores while changing private labels to be more inline with those used by its new parent. In October 2013, Safeway announced that it would close and sell its remaining Dominick's stores in the Chicago area by early 2014. The announcement spurred its competitors to seek employees and desirable store locations they could purchase. One location would remain open in Bannockburn, Illinois until January 25, 2014. On February 19, 2014, Safeway began to explore selling itself. On March 6, 2014, longtime rival Albertsons, backed by Cerberus Capital Management announced it would purchase Safeway for $9.4 billion in a deal expected to close in the 4th quarter of the year. Many of Safeway's private brands and IT systems were integrated and replaced Albertsons legacy equipment. As part of the purchase,
Blackhawk Network Blackhawk Network Holdings Inc. is an American privately held company that operates in the prepaid, gift card and payments industries. It sells branded physical and digital gifts, phones, prepaid debit, and incentives cards online and through ...
was spun off into an independent company. Blackhawk remained Safeway's sole gift card provider until 2021, when Albertsons switched to InComm for branded gift cards and network activation. Blackhawk still provides Safeway with store gift cards and store credit.


Safeway as a supermarket brand

On January 30, 2015, the merger between Safeway and Albertsons was finalized. As part of the merger, Bellingham, Washington-headquartered grocery chain Haggen announced it would buy 146 Vons, Albertsons, and Pavilions stores across Washington, Oregon, California, Nevada, and Arizona as part of anti-monopoly requirements following the merger. Some of the major metropolitan areas affected were Los Angeles, Portland, Phoenix, Tucson, San Diego, Bakersfield, Seattle, and Las Vegas. Other stores in the West Coast, along with the Dallas-Fort Worth Metroplex market, also saw divestments. Following the purchase, Safeway and its remaining brands, Randalls, Tom Thumb, Vons, and Pavilions, along with their respective divisions, were integrated into the operations of Albertsons, and Safeway's proprietary food products were distributed in all of the Albertsons-Safeway banners, replacing Albertsons' SuperValu branded products. All former Albertsons banners had their telephones and NCR POS systems replaced with Safeway's Toshiba/IBM hardware. On January 11, 2016, it was announced that the three remaining Albertsons stores in Florida, located in Largo, Altamonte Springs and Oakland Park, would be re-bannered as Safeway; this marks the first time that the Safeway brand would exist on a supermarket operation in Florida. These stores were short lived, as Albertsons later abandoned their Florida operations and sold the stores to
Publix Publix Super Markets, Inc., commonly known as Publix, is an employee-owned American supermarket chain headquartered in Lakeland, Florida. Founded in 1930 by George W. Jenkins, Publix is a private corporation that is wholly owned by present and ...
in 2018. Beginning in 2018, Safeway and Albertsons began remodeling stores with a new theme that moved away from the "Lifestyle" decor first introduced in the early 2000s. The new theme features brighter colors and tiled backsplashes on department signage. The company has also begun to replace most of its lighting setup in favor of LEDs. Most older stores used fluorescent tubes in the main aisles with
halogen The halogens () are a group in the periodic table consisting of five or six chemically related elements: fluorine (F), chlorine (Cl), bromine (Br), iodine (I), astatine (At), and tennessine (Ts). In the modern IUPAC nomenclature, this group is ...
spotlights in the departments or to accent display cases for a relaxed ambiance. The new standard is LED retrofit tubes for the old fluorescent fixtures, and completely replacing the halogen spot lamps with LED strips or office-style ceiling fixtures that focus on overall illumination instead of targeted, accented lighting. They also replaced lighting in employee areas and offices throughout 2021. In August 2021, Safeway launched FreshPass, a paid subscription service that allows for free unlimited delivery/pickup and gives members exclusive discounts and offers. The program was launched with a refreshed mobile app that supports scan-and-pay shopping in select markets. Safeway also activated QR payments and digital receipts with the updated mobile app. The "Just for U" rewards program (commonly branded J4U), first launched in 2012, was simplified to "for u" as part of the FreshPass launch. Other Albertsons stores in various markets have rebannered as Safeway, including Denver and Seattle.


Private brands

"Signature Select" is the company's signature private label that offers an everyday range of products. "Signature Reserve" is the company's private label for more upscale products. The label "Primo Taglio" is used for upscale deli products and "Lucerne" is the main dairy line for the company. In 2006, Safeway introduced an
organic Organic may refer to: * Organic, of or relating to an organism, a living entity * Organic, of or relating to an anatomical organ Chemistry * Organic matter, matter that has come from a once-living organism, is capable of decay or is the product ...
ally grown and processed line of products named "O Organics". A number of prepared dishes and soups are available under "Signature Cafe". After its acquisition by Albertsons, the combined company adopted Safeway's private label brand program, previously named "Safeway Select".


Brand list

Some of the brands in use are: * Signature Select - Main line of grocery products * Signature Reserve - Premium alternative to products in the Signature Select line * Value Corner - Cheaper alternative to products in the Signature Select/Lucerne line * O Organics - Organic products * Open Nature - 100% natural products * Lucerne Dairy Farms - Main dairy brand, used for ice cream, cheese, yogurt, and milk * Signature Cafe - Brand used for food sold at the deli counter, soups, and refrigerated food made by the deli and sold in the Deli Department * Signature Farms - Produce Department brand for fresh fruits and vegetables * Signature Care - Home and wellness products * Primo Taglio - Deli brand for meat and cheese * Debi Lilly Design - Floral and home décor products * waterfrontBISTRO - Frozen seafood products Signature Select / Refreshe Brand Cola is produced by Cotts Beverages for Safeway; it is bottled in San Bernardino, California. Safeway Refreshe brand bottled water is bottled by Advanced H2O, LLC in Stockton, California. Safeway closed its water bottling plant in downtown Los Angeles in January 2012.


Safeway grocery delivery

Safeway has offered online grocery delivery service in select markets starting in the American Northwest region in 2000. The service grew to deliver in six states and the District of Columbia, mostly along the west and east coast. Fueled by rising demand from the COVID-19 pandemic, Safeway has been rapidly expanding the number of locations offering contactless curbside pickup (marketed as "DriveUp & Go"), and continues to offer traditional prescheduled delivery services along with on-demand deliveries filled via Instacart. In early 2020, Safeway began offering deli department items and prepared-to-order sandwiches on DoorDash, and eventually began offering grocery delivery as well once they introduced DoorDash Marketplace. Curbside pickup orders are processed by Store Employees with items off the shelf in a manner similar to Instacart. In January 2021, Albertsons announced that it would be laying off union company-employed grocery delivery drivers at Safeway stores in the Northern California region, stating that they would be transferring those services to app-based delivery platforms, such as Instacart. This decision only affected employees working in the 'traditional' scheduled delivery department inside the stores, and all employees were offered other positions within the company. This announcement came several weeks after Proposition 22 was passed in California, which allowed app-based services to classify their employees as independent contractors instead of full-time employees.


Past concepts

Safeway throughout the decades has ventured and experimented with different concepts and themes for its locations and stores. In 1963, Safeway developed the Super S format—which combined a general merchandise and drug store and a new Safeway supermarket in the same building. The stores shared a common entrance, but operated as separate businesses with their own checkstands. The first outlet opened in Anchorage, Alaska. In 1965, 22 existing Super S stores were sold to
Skaggs Drug Stores Skaggs Companies was the predecessor to many famous United States retailing chains, including Safeway, Albertsons, Osco Drug, and Longs Drugs. The company owned several drugstore chains, but all of them were sold. Skaggs Cos. became American St ...
. Safeway sold the remaining stores in 1971. Some of these stores, such as #1526 outside the Valley Fair Mall in San Jose, were walled off and subdivided to allow chain drugstores to sign leases while the Safeway remained operating in its original configuration. In 1964, Safeway opened a trial two-level International Store at 12th and F Street in Washington, D.C., with a conventional Safeway downstairs and a gourmet store on the upper floor. The Safeway International Store range included wild boar steaks, snow hare, suckling pig, and reindeer steaks. The company also made a number of attempts to repurpose older, smaller store sites, opening Food Barn, a discount grocery outlet, and Liquor Barn, a discount liquor outlet, in the 1970s. Safeway also trialed Town House in Washington, D.C., small stores targeting apartment dwellers, and a gourmet store concept, Bon Appetit in San Francisco and Tiburon, California. In 1969, Safeway formed a joint venture with Holly Farms Poultry Industries (now part of Tyson Foods) to open Holly Farms Fried Chicken in an effort to diversify into fast food restaurants and compete with
KFC KFC (Kentucky Fried Chicken) is an American fast food restaurant chain headquartered in Louisville, Kentucky, that specializes in fried chicken. It is the world's second-largest restaurant chain (as measured by sales) after McDonald's, with 2 ...
. The first store opened in Colonial Heights, Virginia in August 1969. Safeway also acquired Pak 'n Save Foods, a box warehouse concept, as part of the 1983 purchase of Brentwood in Northern California. While these stores were initially distinct in price points and bulk sales, today they are functionally and operationally the same as regular Safeway supermarkets. As of 2021, only 3 remaining Pak 'n Save locations remain in San Leandro,
Emeryville Emeryville may refer to: * Emeryville, California Emeryville is a city located in northwest Alameda County, California, in the United States. It lies in a corridor between the cities of Berkeley and Oakland, with a border on the shore of San ...
, and Madera; all of the other remaining locations were either permanently closed or remodeled into standard Safeway locations.


Logos

* The S Medallion (1946–1982): The red "S" part was slightly thinned in the late 1950s, and remained that way through 1982. * The Ribbon Leaf (1982–2006): Safeway used this logo from 1982 to 2006. The red stylized "S" was still in the center. * The Yin-Yang – Life logo (2006–present): The stylized "S" is still located in the center of a red "tube TV screen-style" shape, but is now white. File:Safeway Medallion.png, Safeway Medallion logo, 1946 File:Safewayfoodanddrug.svg, The Ribbon Leaf logo, 1982 File:Old_Safeway_logo.jpg, The Medallion logo in tile, July 2005


Slogans

* "An Admonition and an Invitation to Drive the Safeway, Buy the Safeway" (original) * "People on the Go, Go Safeway" (pre-1969) * "Since We're Neighbors, Let's Be Friends" (1969–1979) was probably the first Safeway advertising campaign to make use of a singalong jingle. This slogan was used by the U.S. stores until July 16, 1979, when the "Everything" slogan was adopted. * "Everything You Want from a Store and a Little Bit More" (1979 – December 1981) was the campaign launched on July 16, 1979, and was adopted, perhaps, to reflect the image of Safeway stores as "one stop shopping centers". This campaign was used through December 1981, although it was in use in the UK into the 1990s. * "Today's Safeway: Where You Get a Little Bit More" (January 1982 – 1983) was the first Safeway ad campaign to make use of the company's new "ribbon leaf" logo. * "America's Favorite Food Store" (1983–1986) * "I Work an Honest Day and I Want an Honest Deal" (1985–1987) and "America's favorite food store" tagline were used with this campaign through 1986, until the buyout and divestitures, which reduced the store count and made the "America's favorite" line inaccurate; it also featured a song. * "
Nobody Does It Better "Nobody Does It Better" is a power ballad and the theme song Theme music is a musical composition that is often written specifically for radio programming, television shows, video games, or films and is usually played during the title sequenc ...
" (1992 – late 1990s): This campaign is unique for being adapted from a pop song. In this case, the song was a hit for
Carly Simon Carly Elisabeth Simon (born June 25, 1943) is an American singer-songwriter, memoirist, and children's author. She rose to fame in the 1970s with a string of hit records; her 13 Top 40 U.S. hits include "Anticipation" (No. 13), " The Right Thin ...
in 1977. Simon sang it as the theme song to 1977's James Bond movie, '' The Spy Who Loved Me''. The 1993 version used in the commercials was recorded by R&B Grammy Award–winning singer
Patti LaBelle Patricia Louise Holte (born May 24, 1944), known professionally as Patti LaBelle, is an American R&B singer, actress and businesswoman. LaBelle is referred to as the " Godmother of Soul". She began her career in the early 1960s as lead singe ...
. * "Giving Our Best" (2001–2005) * "Vons Is Value" (mid-to-late 1990s) was used only for Vons stores in Southern California. This was the first Vons ad campaign since Safeway took over ownership of the chain. * "Ours Is Bigger Than Yours" (mid-1990s), in reference to the expansion of produce departments in Northern California. * "Delivering Our Best" (late 1990s – 2005) was used only for grocery delivery * "Ingredients for life" (2005–2015): Was introduced during the relaunch, as part of its lifestyle "branding". * "fresh to your door" (2012–2019): used only for grocery delivery * "It's Just Better" (2015–present): used by both Albertsons and Safeway as a combined company. * "Fresh Foods, Local Flavors" (2019–present): used in Albertsons/Safeway Denver Division


Safeway corporate information


Safeway ATM Network

The Safeway ATM Network, run for Safeway by
Cardtronics Cardtronics is a global financial services technology company that provides automated teller machines to retailers, and operates the Allpoint interbank network. Since 2017, Cardtronics’ network counted over 200,000 affiliated ATMs and is the ...
, operates in Colorado, Oregon, Wyoming and Washington. Usually, one machine is located near the front of each store that has an ATM. Cirrus, Plus, Star, and NYCE are on the network. The network started late 1998 in Denver and expanded into Wyoming, Washington, and Oregon.


Support offices

* California ** Pleasanton, California (Headquarters), Corporate Call Center, IT Support Services, Retail Pricing * Colorado ** Denver, Colorado (Offices, Safeway Security, Trucking) * Arizona ** Phoenix, Arizona (Offices, Accounting Offices, IT) * Maryland **
Lanham, Maryland Lanham is an unincorporated community and census-designated place in Prince George's County, Maryland. As of the 2020 United States Census it had a population of 11,282. The New Carrollton station (the terminus of the Washington Metro's Orange Li ...
(Eastern US Headquarters) * Philippines ** Manila, Philippines (IT Support Services)


Safeway Category Optimization Process

Safeway transitioned from regional control of its product assortments to national category management, known as the Safeway Category Optimization Process (SCOP). With all dry grocery corporate buying done from Safeway's Pleasanton offices, it is said it will increase representation of manufacturers by experienced sales professionals with extensive product and category knowledge. Corporate produce buying offices are located in Phoenix, Arizona. This will mean consistency across the Safeway chain, meaning one could go into a store in Winnipeg or San Francisco and find the same products at the same price, as all negotiation is now done at the corporate level.


Animal welfare concerns

In 2012,
Mercy for Animals Mercy For Animals (MFA) is an international nonprofit animal protection organization founded in 1999 by Milo Runkle. MFA's mission is to "prevent cruelty to farmed animals and promote compassionate food choices and policies." MFA has conducted mo ...
conducted an undercover investigation at Christensen Farms, a pork supplier to Safeway, Walmart, Costco, Kroger, and Kmart. Before the public release of Mercy for Animals' investigation at Christensen Farms, Safeway announced it would begin requiring pork suppliers to phase out gestation crates. In 2008,
Greenpeace Greenpeace is an independent global campaigning network, founded in Canada in 1971 by Irving Stowe and Dorothy Stowe, immigrant environmental activists from the United States. Greenpeace states its goal is to "ensure the ability of the Earth t ...
started ranking America's major supermarket chains on their seafood sustainability practices because, according to Phil Radford, Greenpeace U.S. CEO, "three quarters of global fish stocks are suffering from overfishing, and 90% of top marine predators are already gone". Criteria included the number of threatened fish species supermarkets sold, their seafood purchasing policies, and ocean legislation policies it supported. Greenpeace annual Carting Away the Oceans (CATO) report ranks supermarkets on a scale of 1 to 10, with 1 being least sustainable with seafood policies and 10 being the most sustainable with seafood policies. Safeway ranked second best (7.1 out of 10) on the 2013 CATO Report by ensuring that its store brand of canned tuna was sustainably fished and by lobbying for science-based ocean conservation policies. In 2016, Safeway parent company Albertsons joined a growing wave of companies moving toward "cage-free" egg production and announced a planned shift to cage-free eggs by 2025 following campaigns by
The Humane League The Humane League (THL) is an international nonprofit organization that works to end the abuse of animals raised for food through institutional and individual change, including online advertising, Meatless Monday campaigns, and corporate outreac ...
,
Mercy for Animals Mercy For Animals (MFA) is an international nonprofit animal protection organization founded in 1999 by Milo Runkle. MFA's mission is to "prevent cruelty to farmed animals and promote compassionate food choices and policies." MFA has conducted mo ...
, The Humane Society of the United States, and others.


Safeway music

Safeway music is provided by
InStore Broadcasting Network InStore Audio Network (also known as ISAN) is a Utah-based retail media provider of narrowcasting, narrowcast in-store background music, music, in-store video content and audio advertising for delivery within supermarkets and Pharmacy, drugstore ...
. The satellite network also beams commercials and advertisements for Safeway products and brands that play intermittently with the music.


See also

*
List of supermarket chains in the United States This is a list of supermarket companies in the United States of America and the names of supermarkets which are owned or franchised by these companies. For supermarkets worldwide, see List of supermarkets. National chains * Ahold Delhaize – ...
* List of online grocers * Safeway (Australia)—Sold to Woolworths Limited Australia in 1985. All locations renamed to Woolworths Supermarkets from 2008 to 2017. * Safeway (Canada)—Sold to
Sobeys Sobeys Inc. is the second largest supermarket chain in Canada, with over 1,500 stores operating across Canada under a variety of banners. Headquartered in Stellarton, Nova Scotia, it operates stores in all ten provinces and accumulated sales o ...
in 2013. Continues to use the Safeway banner. *
Safeway (UK) Safeway is a British brand owned chain of supermarkets and convenience shops. Founded in 1962 by the American Safeway Inc., before being sold to Argyll Foods in 1987. It was later listed on the London Stock Exchange. It was purchased by Morrison ...
—Sold to Argyll Foods in 1987. Continued to use the Safeway name until 2005, after they were acquired by Morrisons in 2004.


References


External links

* {{Authority control Supermarkets of the United States Superstores in the United States Online grocers Companies based in Pleasanton, California American companies established in 1915 Retail companies established in 1915 1915 establishments in Idaho Economy of the Western United States Companies formerly listed on the New York Stock Exchange 1986 mergers and acquisitions Skaggs family Supermarkets based in California 2015 mergers and acquisitions