Safeway
Independent (1915–2015) Albertsons (2015–present) | |
Website | safeway |
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Safeway, Inc. is an American
History
Skaggs 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.[4][5][6][7]
The point of the name was that the grocery operated on a
In 1926,
The merger instantly created the largest chain of grocery stores west of the
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., which defended the right to peaceful protest in the resolution of labor disputes.[11][12]
In 1969, the Black Panther Party 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.[13][14] 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.[13] The United Farm Workers boycotted Safeway because the chain continued to sell California grapes despite the union's nationwide boycott.[13] 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".[15]
Expansion
The
Year | Firm | # of stores | Location |
---|---|---|---|
1926 | H.G. Chaffee | grocery stores | Southern California |
1926 | Skaggs Cash Stores
|
679 grocery stores | Idaho |
1926 | Skaggs United Stores | (in above) | California |
1928 | Arizona Grocery/Pay'n Takit Stores | 24 grocery stores; 24 meat markets | Arizona |
1928 | Newway Stores | 15 grocery stores; 11 meat markets | El Paso, Texas |
1928 | Sanitary Grocery (incl. some Piggly Wiggly) | 429 grocery stores; 67 meat markets | Washington D.C. and Virginia |
1928 | Eastern Stores Inc. | 67 grocery stores; 127 meat markets | Baltimore, Maryland |
1928 | Piggly Wiggly Pacific | 91 grocery stores; 84 meat markets | Oakland, California |
1928 | Bird Grocery Stores (including some Piggly Wiggly) | 224 grocery stores; 210 meat markets | Missouri, Texas, Arkansas, Iowa, Kansas, Nebraska |
1929 | Piggly Wiggly West | 91 grocery stores; 84 meat markets | Northern California, Hawaii, Colorado |
1929 | Sun Grocery | 91 grocery stores; 84 meat markets | Tulsa, Oklahoma |
1931 | MacMarr Stores | grocery stores | Los Angeles |
1936 | Stores from Kroger | 53 grocery stores | Oklahoma |
1941 | Daniel Reeves | 498 grocery stores | New York |
1941 | National Grocery | 84 grocery stores | New Jersey |
1958 | Thriftway Stores (Iowa) | 30 grocery stores | Iowa |
2016–2017 | Andronico's | 9 stores | San Francisco Bay Area |
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.[16][17] In late 2022, 93 years later, this merger became another possibility with the announced merger of Albertsons Companies and Kroger Co.[18]
The number of stores peaked at 3,400 in 1932, when expansion ground to a halt. The Great Depression 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
In 1935, Safeway sold its nine stores in
In 1936, Safeway introduced a money back guarantee on meat.[20]
International expansion
Country | Year | # of stores | |
---|---|---|---|
Canada | 1929[21] | 213 (2013) | |
United Kingdom | 1962 | 131 (1986) | |
Australia | 1962 | 123 (1984) | 187 (rebranded Woolworths 2008) |
West Germany | 1963 | 35 (1984) | |
Mexico | 1981 | 137 (2007) | |
Saudi Arabia | 1982 | 6 (1984) | |
Jordan | 2003 | 6 (2009) |
The company expanded into
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:
Year | Firm | # of stores | Location |
---|---|---|---|
1929 | ? | 9 grocery stores | Canada |
1935 | Piggly Wiggly (Canada) | 179 stores | Canada |
1962 | John Gardner Limited | 11 stores | United Kingdom |
1963 | Pratt Supermarkets | 3 stores | Melbourne, Australia
|
1963 | Mutual Stores | ? stores | Australia |
1964 | Big Bär Basar (Big Bear Bazaar) | 2 stores | West Germany |
1980 | Jack the Slasher | 31 stores | Queensland, Australia
|
1981 | 49% of Casa Ley | ? stores | Mexico |
1940s–1970s
In 1941, Marion B. Skaggs retired from the Safeway board of directors.[9]
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
Also in 1959, designed by architects
In 1961, the company sold its New York operations to Finast.[29] In 1963, Safeway again opened stores in Hawaii, having exited this market in 1934.[30] 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" 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 on December 26, 1986.[31]
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
Year | Division sold | # of stores | Sale price | Buyer | Outcome |
---|---|---|---|---|---|
1982 | Omaha/Sioux Falls | 64 stores | n/a | Multiple buyers including Hy-Vee & Fareway | Stores continue to operate as Hy-Vee (Omaha/Lincoln/Sioux Falls) and Fareway ( Sioux City, IA )
|
1985 | Southern Ontario | 22 stores | n/a | Oshawa Group | Oshawa was acquired by Sobeys in 1998 |
1985 | West Germany | 36 stores | n/a | Meierei C Bolle | Stores now part of Edeka |
1987 | Dallas | 141 stores | n/a | Unable to sell whole division | Sold in pieces to Tom Thumb Food & Pharmacy (now owned by Safeway), Minyard Food Stores and Furr's ; some stores shuttered
|
1987 | Salt Lake City | 60 stores | $75m | Farmer Jack | Farmer Jack sells stores in pieces at under book value in 1988 to Fleming and Albertsons; Farmer Jack acquired by A&P late 1988 |
1987 | El Paso/Albuquerque | 59 stores | $140m | Furr's Supermarkets (see Roy Furr) | Firm hits financial difficulties; MBO of some stores; other sold; bankruptcy in 2001 |
1987 | Oklahoma | 106 stores | n/a | MBO by management and Clayton, Dubilier & Rice forming Homeland (supermarket) | Firm listed then goes into bankruptcy in 1996. Later it was bought by and became a subsidiary of Associated Wholesale Grocers. AWG sold the Homeland chain to its employees in December 2011.[32] |
1987 | Safeway UK
|
121 stores | US$1b | Argyll Foods | Stores continued to trade under Safeway name until 2005, when they were acquired by Morrisons |
1987 | Richmond | 62 stores[33] | n/a | various buyers | Division merged into Washington DC division (later Eastern Division), stores eventually sold off to competitors, including Farm Fresh |
1988 | Kansas City | 66 stores | n/a | Morgan Lewis Githens & Ahn/W S Acquisition Corp. | Renamed Food Barn; bankruptcy 1994; stores sold to Associated Wholesale Grocers, which either closed or divested them to their members. |
1988 | Little Rock | 51 stores | n/a | Acadia Partners | Renamed Harvest Foods; bankruptcy in 1995; stores sold off; some now part of Associated Wholesale Grocers after the demise of Affiliated Foods Southwest |
1988 | Houston | 99 stores | $174.6m | MBO with Duncan Cook and Co. and the Sterling Group | Renamed AppleTree Markets; bankruptcy 1992; stores sold to competitors |
1988 | Southern California | 172 stores | $408m | Vons | The $408m that Safeway acquired in the deal consisted of $325m in cash and 30 percent interest in Vons;[34] Safeway later acquired 100 percent ownership in 1997 |
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 sold its stores in Southern California, including those in established markets like
Many stores in the Eastern Division were also closed or sold in the 1987–1989 time frame, 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
In 2000, Safeway started grocery delivery operations
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.[37]
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.[38][39]
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 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.[39]
In July 2007, the company stock rose on speculation that
In 2011, Safeway signed an agreement with
Decline and sale to Albertsons
The Genuardi's stores in
In 2012, the company dissolved the Genuardi's chain in the Philadelphia metro through a combination of store selloffs and closures.
Also in 2012, Safeway's then-current CEO,
In 2013, it was announced that Cerberus Capital Management were exploring a deal for all or part of Safeway.
In October 2013, Safeway announced that it would close and sell its remaining Dominick's stores in the Chicago area by early 2014.[46][47] The announcement spurred its competitors to seek employees and desirable store locations they could purchase.[48] One location would remain open in Bannockburn, Illinois, until January 25, 2014.[49]
On February 19, 2014, Safeway began to explore selling itself. On March 6, 2014, longtime rival Albertsons, backed by
Safeway as a supermarket brand
On January 30, 2015, the merger between Safeway and Albertsons was finalized.
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'
On January 11, 2016, it was announced that the three remaining Albertsons stores in Florida, located in
In November 2016, Safeway Inc. agreed to buy Andronico's remaining stores, which were based primarily in the
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 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 2019, Safeway was ordered by a judge to pay a fine of $12 million after a Santa Clara County, California cashier was denied the right to sit. California state law guarantees the right of workers to have "suitable seats".[62]
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.[63]
Other Albertsons stores in various markets have rebranded as Safeway, including Denver[64] and Seattle.[65]
In October 2022, Albertsons and its competitor, Kroger, which also operates King Soopers and City Market stores, announced a merger agreement.[66] Following initial opposition, the two parent companies said they would sell 400+ stores to a competitor, C&S Wholesale Grocers.[67] Regardless, the planned merger has been challenged in court by a couple of states. In February 2024, Colorado Attorney General Phil Weiser filed a lawsuit; he summarized consumer and worker opposition: the merger "would lead to stores closing, higher prices, fewer jobs, worse customer service, and less resilient supply chains.”[68]
Private brands
In 2006, Safeway introduced an organically grown and processed line of products named "O Organics". The brand has proved successful, with yearly sales surpassing $1 billion in 2017.[69] Open Nature was launched in 2011,[70] and has also proved successful enough that Open Nature has absorbed some other previous private brands (Such as Bright Green, Signature Home, and Lucerne Plant-Based products).
After its acquisition by Albertsons, the combined company adopted Safeway's private label brand program, changed the name from "Safeway Select" to "Signature Select", and updated the branding and packaging for all of their products.
Grocery delivery
Safeway has offered online grocery delivery service in select markets starting in the American Northwest region in 2000.[36] The service grew to deliver in six states and the District of Columbia, mostly along the west and east coast.[71] Safeway has rapidly expanded 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 and DoorDash.[72]
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.[73] 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.
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
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.[75]
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
Safeway also acquired Pak 'n Save Foods, a box warehouse concept, as part of the 1983 purchase of Brentwood in Northern California.
Logos
-
Safeway Medallion logo, 1946
-
The Ribbon Leaf logo, 1982
-
The Medallion logo in tile, July 2005
-
Current logo, 2006
Safeway corporate information
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 (Eastern US Headquarters)
- Philippines
- Manila, Philippines(IT Support Services)
Store Music/Intercom Announcements
Safeway music is provided by
Animal welfare concerns
In 2012, Mercy for Animals conducted an undercover investigation at Christensen Farms, a pork supplier to Safeway, Walmart, Costco, Kroger, and Kmart.[81] 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.[82][83]
In 2008, Greenpeace 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,[84] and 90% of top marine predators are already gone".[85][86] Criteria included the number of threatened fish species supermarkets sold, their seafood purchasing policies, and ocean legislation policies it supported.[87] 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.[88]
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
See also
- List of supermarket chains in the United States
- Safeway (Australia)—Sold to Woolworths Limited Australia in 1985. All locations renamed to Woolworths Supermarkets from 2008 to 2017.
- Safeway (Canada)—Sold to Sobeys in 2013. Continues to use the Safeway banner.
- Safeway (UK)—Sold to Argyll Foods in 1987. Continued to use the Safeway name until 2005, after they were acquired by Morrisons in 2004.
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