October 16, 2009

Profits Drop, But New Pricing Effective: Safeway
Supermarket News
By Elliot Zwiebach

PLEASANTON, Calif. — Safeway here said yesterday that, despite lower overall financial results, it is seeing "dramatic improvements" in sales among consumers who are not regular high-volume shoppers in three of the four U.S. markets in which it has launched its lower-price campaigns.

The four markets are Northern California, Southern California, Chicago and the Eastern division. The company did not say which of the four had seen less dramatic improvements.

The chain reported lower financial results for the third quarter and 36 weeks that ended Sept. 12, with net income for the quarter down 35.5% to $128.8 million, sales down 7% to $9.5 billion and identical-store sales, excluding fuel, down 3%.

For the 36-week period, net income dropped 18.4% to $511.6 million and sales dropped 7% to $28.2 billion. The company did not release ID sales for the year-to-date period.