Safeway is trimming help in the stores again, most likely to put a good spin on earnings going forward, A better solution, now that Canada will have earnings separated from continuing operations, start cutting the bloated backstage help. The stores are dealing with more paperwork from backstage......... than product that is sold!
It's hard to say, at this point it could be just a change in how earnings will be reported in the future. Distance the new CEO as far from Steve Burd operating style as possible, I'm not sure what Edwards experience in the food industry is, bit it can't be any less than Burd!
This company needs to be downsized to increase shareholder value, jettisoning all underperforming companies and cleaning up the bloated backstage help. Then, change the business model in the stores because cutting staffing levels every year isn't working. Remember, Steve Burd wanted to own the middle when he spent billions upgrading the stores and at the time, probably had 40% more labor than the stores have today!
I'm afraid those that will be cut are the bloated staff that occupy cubes backstage and maybe 75 to 100 vice-presidents!
I'm wondering how much the Canadian divisions profit added to Safeway's bottom line. The way Nor Cal is being run today, it would appear that the bottom line profit for the company may come up short. Staffing in the stores is horrible, long lines, out of stocks (sale Turkeys), no service at the service counters, poor displays in the outer departments,( looking more like 'dump and run' ) . The message being, "don't shop here, even thou we spend millions on advertising and have lots of collage graduates backstage , we really don't want your business because we make all our profit when we buy the merchandise"!
If Safeway goes private, the company will be a much smaller, leaner and profitable company than it is today. Safeway will most likely shed Vons in SoCal and let go some other divisions, ultimately ending with about 900 stores.
Much dead weight will be shed from Pleasanton as nothing helpful for the stores has come from there in many years!
I guess you don't get to shop in the stores much, as a consumer. Rather, you are in the stores after a major 'fire drill' when everything looks great and you have doubled the staff for the day!
Guess those were the shoppers that visited the stores the last few weeks and wondered why they have to waste 15 minutes of their life in a checkout line. With 3 check stands opened at mid day, one self check, one express and one full serve (but no bagger)!
Canada was a profitable division and the earnings will be sadly missed! Perhaps Safeway could off the Vons division to increase the bottom line. The added benefit would be that backstage could eliminate many positions which would be a positive to net earnings.
I can tell you where some of the shrinkage is coming from... major theft when the stores are busy. With so little staffing at peak times, baskets of groceries leave the store,