Safeway says goodbye to Chicago, profit falls

[FarCenter]

Safeway Inc (SWY.N) said on Thursday it plans to leave the Chicago market by early next year as it continues to narrow its focus and posted a sharply lower profit for the third quarter.

The shares of Safeway, the second-largest U.S. mainstream grocery store operator, rose to $33.35 after hours after closing at $31.57 on the New York Stock Exchange.

Chicago is a competitive market for food stores. Newer entrants such as Roundy Inc's (RNDY.N) Mariano's chain, which features piano players in its stores, have gained ground with shoppers looking for a higher-end experience, while Aldi Inc has added more stores that draw cost-conscious customers. Wal-Mart Stores Inc (WMT.N), Target Corp (TGT.N), privately held Meijer Inc and other retailers have also focused more on food sales.

The Dominick's chain in Chicago has been a "noticeable drag" on Safeway's financial results, a "significant drain" on resources and its lowest performing division, Chief Executive Officer Robert Edwards said on a conference call with analysts.

http://www.reuters.com/article/2013/10/10/us-safeway-results-idUSBRE99913B20131010

[SoCalDem]

1. The grocery business is a strange beast

THIRTY plus years ago there were LOTS os supermarkets...everywhere..with union employees.. They just kept building them and everyone seemed to be okay with the plan.. and then the merger-mania decades came along, and soon, there were fewer and fewer and union busting was ruining the ones that remained..

Around here in 1981 we had several good-quality modern markets...and we had 1/4 the population we now have.. Our food shopping selections are AWFUL now

It;s the same with banks.. We had MULTIPLE banks to choose from way back then and now there are a precious few left.

I don't want to buy groceries at Target or Walmart or El Superior or Cardenas Market or Fiesta or Food 4 Less..

I miss the good old days with Safeway, Alpha-Beta, Albertsons, Vons Pavillion, Ralphs, Smiths. A & P, Kroger

[Art_from_Ark]

2. In 1970, my hometown, with a population of 10,000

had at least 6 supermarkets, and a few mom-and-pop roadside stores as well. Today, the population is 5 times what it was, and there are 2 stores that could be considered "supermarkets" in the traditional sense, two Wal-Mart Supercenters, one Aldi's (I think it's still in business), and two "supermercados".

The two traditional supermarkets, by the way, are employee-owned, and one of them, at least, has the friendliest staff you'll ever meet in a supermarket.

[Seeking Serenity]

3. Is one of them Harp's?

I love Harp's.

[Art_from_Ark]

5. Oh, my gosh!

You know! It is, indeed, Harp's!

[datasuspect]

4. dominicks has better prices than jewels

and a better deli.

that sucks.