Safeway Inc. (SWY): Safeway has a market capitalization of $7.5 billion. Its earnings per share are $1.48. Revenues for the grocery retailer were about $43 billion last year. Its net income was $529 million. Safeway pays a dividend of $.58, yielding 2.7%. Although Safeway tends to appeal to more upscale shoppers than Wal-Mart and other discounters, its margins are in line with others in the industry. Its operating margin was 2.88% and its gross margin was 28.63%. It has a large presence in California, which is a state that Wal-Mart has not been able to stake a large claim in. This has helped Safeway maintain its competitive edge in the state. The company's price to earnings ratio is 14.80. While Safeway's prices can be as high as 20% more than those of competitors like Wal-Mart, the company has a loyal following of customers willing to pay the higher prices. Being able to stand out among competitors even with pricier items that customers are willing to pay for is one of the advantages that benefits Safeway's bottom line. I rate this stock a buy.
First, youre on the wrong board. Second, the only reason Safeway has a stronger presence in California than WalMart is because the labor unions in California are in control of lawmakers. Whenever WalMart (Non union) submits plans to build a store, the local council members are paid off to vote against it, even though it would bring MORE jobs than Safeway does, and save shoppers in low income areas much needed money. I no longer live in california, and we have a safeway and WalMart here, both within 5 miles of my home. I shop at WalMart, and I would pay more to shop there if WalMart ever raised their prices above Safeway, because I will never cater to any business that is union controlled. They are the modern day version of the Mafia.