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Safeway Inc. Message Board

  • castle_of_camelback castle_of_camelback Mar 17, 2014 12:47 PM Flag

    When will the smaller unprofitable stores be closed?

    We have a summer home in a small town with a "down at the heels" Safeway store. Just wondering if
    it will be closed before the coming summer months. Frankly, we avoid the place if at all possible --
    dirty, worn out, high prices -- but handy when we run out of something.

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    • Actually those small remote stores hold their own on profits. The buildings are all paid for, low property taxes, low overhead, short hours, theft is low, no fresh departments so less labor/shrink...

      Dirty, worn out, high prices describes much of the SWY chain.

    • @castle, so you don't usually shop there, now your wondering if the store will be closed??? What do you care, you only pick up something when you run out. I would think the rest of your summer home people do the same thing, maybe you guys can get together and open a grocery store when Safeway moves out. Oh wait, prices will be high and shopper only shop when they run out of something, not a very desirable business model.

    • Swy management has made the decision to let the location you refer wither, and die. You and your neighbors have regularly avoided it, so the SWY decision to be made is to CLOSE it. No consumer demand requires a corporation to seek other locations, other models of distribution. A supermarket's success is a 52 weeks 365 days a year consumer focus.

      • 1 Reply to rwcva
      • One of Safeway's niches has been operating "seasonal stores" that do heavy volumes during part of the year and are very quiet the rest of the year. They have good niches in ski towns in Colorado (this is what keeps Denver division afloat because they are failing miserably in metro Denver, Pueblo, and Colorado Springs), Lake Tahoe in CA, and various other scattered stores in tourist areas such as along the Oregon Coast (Fred Meyer has eaten into this niche somewhat, but Safeway still has a couple towns like Seaside and Lincoln City wrapped up well).

        Safeway understands this business, something Albertsons did not understand as I've seen them leave those markets. Safeway hires temporary employees, brings employees in from other areas and houses them, knows tourists don't care about price so the awful Safeway pricing that is such a liability normally does not matter in these cases, and knows the chronically understaffed condition of these stores does not matter as there is no competition so the consumers/tourists have no other choice. But you know where those tourists won't be shopping once they get back home, and do have a choice... Safeway.

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