Safeway Inc. (NYSE: SWY), a Fortune 500 company, is North America's second largest supermarket chain after Kroger Co., with, as of December 2009, 1,725 stores located throughout the western and central United States and western Canada. It also operates some stores in the Mid-Atlantic region of the Eastern Seaboard. The company is headquartered in Pleasanton, California. Supermarket News ranked Safeway No. 4 in the 2011 "Top 75 North American Food Retailers" based on 2010 fiscal year estimated sales of $41 billion. Based on 2009 revenue, Safeway is the 11th largest retailer in the United States.
Safeway Inc. (Safeway), incorporated in July 1986, is a food and drug retailer in North America. As of January 1, 2011, the Company had 1,694 stores. The Company’s the United States retail operations are located in California, Oregon, Washington, Alaska, Colorado, Arizona, Texas, the Chicago metropolitan area and the Mid-Atlantic region. The Company’s Canadian retail operations are located in British Columbia, Alberta and Manitoba/Saskatchewan. In support of its retail operations, the Company has network of distribution, manufacturing and food-processing facilities. Safeway owns and operates GroceryWorks.com Operating Company, LLC (GroceryWorks), an online grocery channel doing business under the names Safeway.com, Vons.com and Genuardis.com (collectively, Safeway.com). Safeway also has a 49% ownership interest in Casa Ley, S.A. de C.V. (Casa Ley), which operates 168 food and general merchandise stores in Western Mexico. Blackhawk Network, Inc. (Blackhawk), a subsidiary of Safeway, provides third-party gift cards, pre-paid cards, telecom cards and sports and entertainment cards through grocery, convenience and other retailers in North America, Europe and Asia.
During the fiscal year ended January 1, 2011 (fiscal 2010), Safeway’s retail business, which represented more than 98% of consolidated sales and other revenue, operates in the United States and Canada. Safeway is organized into 12 geographic retail operating segments (Chicago, Denver, Eastern, Northern California, Phoenix, Portland, Seattle, Texas, Vons, Alberta, Vancouver and Winnipeg). Across all 12 retail operating segments, the Company operates one store format, where each store offers the same general mix of products with similar pricing to similar categories of customers.
Safeway’s average store size is approximately 46,700 square feet. Safeway’s stores provide a range of grocery items tailored to local preferences. Its stores offer a range of food and general merchandise and feature a range of specialty departments, such as bakery, delicatessen, floral and pharmacy. In addition, the stores offer Starbucks coffee shops and many offer adjacent fuel centers. Safeway continues to operate a range of smaller stores that also offer a selection of food and general merchandise and include one or more specialty departments. These stores remain an important part of the Company’s store network in smaller communities and certain other locations. As of January 1, 2011, Safeway owned 41% of its stores and leased its remaining stores. Safeway’s deli/food service department has developed a range of solutions for shoppers, including Signature Cafe sandwiches, soups and salads. Safeway has continued to develop its line of Consumer Brand products. Its Safeway SELECT line offers a range of products. It offers over 400 items. Safeway’s health and wellness portfolio includes O ORGANICS, Eating Right, Bright Green and Open Nature. It also has waterfront BISTRO, a restaurant for seafood brand. During fiscal 2010, it rebranded its 14 private-label beverage brands under the Refreshe label.
Safeway’s Canadian subsidiary has a wholesale operation, which distributes both national brands and private-label products to independent grocery stores and institutional customers. In addition, the Company operates laboratory facilities. As of January 1, 2011, Safeway had 17 distribution/warehousing centers (13 in the United States and four in Canada), which provide the majority of all products to Safeway’s 12 retail operating areas. The Company’s distribution centers in Maryland and British Columbia are operated by third parties.
Safeway Inc. Company Profile
For many Americans, "going to Safeway" is synonymous with "going to the grocery store." Safeway is one of North America's largest food retailers, with some 1,695 stores located mostly in the western, Midwestern, and mid-Atlantic regions of the US, as well as western Canada. It also operates regional supermarket companies, including The Vons Companies (primarily in Southern California), Dominick's Finer Foods (Chicago), Carr-Gottstein Foods (Alaska's largest retailer), Genuardi's Family Markets (eastern US), and Randall's Food Markets (Texas). Safeway owns grocery e-retailer GroceryWorks.com. Outside the US, Safeway owns 49% of Casa Ley, which operates about 170 food and variety stores in western Mexico.
Skaggs Stores (see Skaggs Companies) had its start in 1915, when Marion Barton Skaggs purchased his father's 576-square-foot (53.5 m2) grocery store in American Falls, Idaho, for $1,089. The chain, which operated as two separate businesses, Skaggs' Cash Stores and Skaggs United Stores, grew quickly, and Skaggs enlisted the help of his five brothers to help grow the network of stores, which reached 191 by 1920.
Charlie Merrill recognized the potential to consolidate the West Coast grocery industry. In June 1926, Merrill offered Skaggs either $7 million outright or $1.5 million plus 30,000 shares in the merged firm. Skaggs took the latter. On July 1, 1926, Safeway merged with the 673 stores from Skaggs United Stores of Idaho and Skaggs Cash Stores of California. On completion of the Skaggs/Safeway merger, M.B. Skaggs became the Chief Executive of the business.
The merger immediately created the largest chain of grocery stores west of the Mississippi. Charles E. Merrill later left Merrill Lynch, for a period of time, to assist in the management of Safeway during the 1930s. At the time of the merger, the company was headquartered in Reno, Nevada, but in 1929, Safeway relocated its headquarters to a former grocery warehouse in Oakland, California. Safeway headquarters moved into Emil Hegstrom's Mutual Creamery Building on East 14th Street and remained there until the move to Pleasanton.
While Seelig/Safeway was technically the original company, Safeway has always considered M.B. Skaggs the founder and the American Falls store the original store.
OVERALL
Beta: 0.69
Market Cap (Mil.): $8,824.17
Shares Outstanding (Mil.): 354.10
Annual Dividend: 0.48
Yield (%): 1.93
FINANCIALS
SWY.N Industry Sector
P/E (TTM): 18.04 18.40 37.56
EPS (TTM): 147.10 -- --
ROI: 4.71 6.64 8.52
ROE: 10.49 8.83 13.70
Financial Highlights
Fiscal Year End: December
Revenue (2010): 41050.00 M
Revenue Growth (1 yr): 0.50%
Employees (2010): 180,000
Employee Growth (1 yr): (-3.20%)
Name Age Since Current Position
Steven Burd 61 1998 Independent Chairman of the Board, President, Chief Executive Officer
Robert Edwards 55 2004 Chief Financial Officer, Executive Vice President
Diane Dietz 44 2008 Executive Vice President, Chief Marketing Officer
Larree Renda 52 2010 Executive Vice President; President of Safeway Health Inc
Bruce Everette 59 2001 Executive Vice President - Retail Operations
Melissa Plaisance 51 2004 Senior Vice President - Finance and Investor Relations
David Bond 57 Senior Vice President - Finance and Control
David Ching 58 1994 Senior Vice President, Chief Information Officer
Robert Gordon 59 2005 Senior Vice President, General Counsel, Secretary, Chief Governance Officer
Russell Jackson 53 2007 Senior Vice President - Human Resources
Donald Wright 58 1991 Senior Vice President - Real Estate and Engineering
David Stern 56 2002 Senior Vice President - Planning and Business Development
Jerry Tidwell 59 2003 Senior Vice President - Supply Operations
Darren Singer 2011 Senior Vice President - Pharmacy, Health and Wellness
Paul Hazen 70 2008 Lead Independent Director
Kenneth Oder 63 2008 Independent Director
William Tauscher 61 1998 Independent Director
Janet Grove 60 2004 Independent Director
Mohanbir Gyani 59 2004 Independent Director
Frank Herringer 68 2008 Independent Director
Arun Sarin 56 2009 Independent Director
Michael Shannon 52 2009 Independent Director
T. Gary Rogers 68 2011 Independent Director
Contact Information
Address: 5918 Stoneridge Mall Rd.
Pleasanton, CA 94588-3229
Safeway Inc. (Safeway), incorporated in July 1986, is a food and drug retailer in North America. As of January 1, 2011, the Company had 1,694 stores. The Company’s the United States retail operations are located in California, Oregon, Washington, Alaska, Colorado, Arizona, Texas, the Chicago metropolitan area and the Mid-Atlantic region. The Company’s Canadian retail operations are located in British Columbia, Alberta and Manitoba/Saskatchewan. In support of its retail operations, the Company has network of distribution, manufacturing and food-processing facilities. Safeway owns and operates GroceryWorks.com Operating Company, LLC (GroceryWorks), an online grocery channel doing business under the names Safeway.com, Vons.com and Genuardis.com (collectively, Safeway.com). Safeway also has a 49% ownership interest in Casa Ley, S.A. de C.V. (Casa Ley), which operates 168 food and general merchandise stores in Western Mexico. Blackhawk Network, Inc. (Blackhawk), a subsidiary of Safeway, provides third-party gift cards, pre-paid cards, telecom cards and sports and entertainment cards through grocery, convenience and other retailers in North America, Europe and Asia.
During the fiscal year ended January 1, 2011 (fiscal 2010), Safeway’s retail business, which represented more than 98% of consolidated sales and other revenue, operates in the United States and Canada. Safeway is organized into 12 geographic retail operating segments (Chicago, Denver, Eastern, Northern California, Phoenix, Portland, Seattle, Texas, Vons, Alberta, Vancouver and Winnipeg). Across all 12 retail operating segments, the Company operates one store format, where each store offers the same general mix of products with similar pricing to similar categories of customers.
Safeway’s average store size is approximately 46,700 square feet. Safeway’s stores provide a range of grocery items tailored to local preferences. Its stores offer a range of food and general merchandise and feature a range of specialty departments, such as bakery, delicatessen, floral and pharmacy. In addition, the stores offer Starbucks coffee shops and many offer adjacent fuel centers. Safeway continues to operate a range of smaller stores that also offer a selection of food and general merchandise and include one or more specialty departments. These stores remain an important part of the Company’s store network in smaller communities and certain other locations. As of January 1, 2011, Safeway owned 41% of its stores and leased its remaining stores. Safeway’s deli/food service department has developed a range of solutions for shoppers, including Signature Cafe sandwiches, soups and salads. Safeway has continued to develop its line of Consumer Brand products. Its Safeway SELECT line offers a range of products. It offers over 400 items. Safeway’s health and wellness portfolio includes O ORGANICS, Eating Right, Bright Green and Open Nature. It also has waterfront BISTRO, a restaurant for seafood brand. During fiscal 2010, it rebranded its 14 private-label beverage brands under the Refreshe label.
Safeway’s Canadian subsidiary has a wholesale operation, which distributes both national brands and private-label products to independent grocery stores and institutional customers. In addition, the Company operates laboratory facilities. As of January 1, 2011, Safeway had 17 distribution/warehousing centers (13 in the United States and four in Canada), which provide the majority of all products to Safeway’s 12 retail operating areas. The Company’s distribution centers in Maryland and British Columbia are operated by third parties.
Safeway Inc. Company Profile
For many Americans, "going to Safeway" is synonymous with "going to the grocery store." Safeway is one of North America's largest food retailers, with some 1,695 stores located mostly in the western, Midwestern, and mid-Atlantic regions of the US, as well as western Canada. It also operates regional supermarket companies, including The Vons Companies (primarily in Southern California), Dominick's Finer Foods (Chicago), Carr-Gottstein Foods (Alaska's largest retailer), Genuardi's Family Markets (eastern US), and Randall's Food Markets (Texas). Safeway owns grocery e-retailer GroceryWorks.com. Outside the US, Safeway owns 49% of Casa Ley, which operates about 170 food and variety stores in western Mexico.
Skaggs Stores (see Skaggs Companies) had its start in 1915, when Marion Barton Skaggs purchased his father's 576-square-foot (53.5 m2) grocery store in American Falls, Idaho, for $1,089. The chain, which operated as two separate businesses, Skaggs' Cash Stores and Skaggs United Stores, grew quickly, and Skaggs enlisted the help of his five brothers to help grow the network of stores, which reached 191 by 1920.
Charlie Merrill recognized the potential to consolidate the West Coast grocery industry. In June 1926, Merrill offered Skaggs either $7 million outright or $1.5 million plus 30,000 shares in the merged firm. Skaggs took the latter. On July 1, 1926, Safeway merged with the 673 stores from Skaggs United Stores of Idaho and Skaggs Cash Stores of California. On completion of the Skaggs/Safeway merger, M.B. Skaggs became the Chief Executive of the business.
The merger immediately created the largest chain of grocery stores west of the Mississippi. Charles E. Merrill later left Merrill Lynch, for a period of time, to assist in the management of Safeway during the 1930s. At the time of the merger, the company was headquartered in Reno, Nevada, but in 1929, Safeway relocated its headquarters to a former grocery warehouse in Oakland, California. Safeway headquarters moved into Emil Hegstrom's Mutual Creamery Building on East 14th Street and remained there until the move to Pleasanton.
While Seelig/Safeway was technically the original company, Safeway has always considered M.B. Skaggs the founder and the American Falls store the original store.
OVERALL
Beta: 0.69
Market Cap (Mil.): $8,824.17
Shares Outstanding (Mil.): 354.10
Annual Dividend: 0.48
Yield (%): 1.93
FINANCIALS
SWY.N Industry Sector
P/E (TTM): 18.04 18.40 37.56
EPS (TTM): 147.10 -- --
ROI: 4.71 6.64 8.52
ROE: 10.49 8.83 13.70
Financial Highlights
Fiscal Year End: December
Revenue (2010): 41050.00 M
Revenue Growth (1 yr): 0.50%
Employees (2010): 180,000
Employee Growth (1 yr): (-3.20%)
Name Age Since Current Position
Steven Burd 61 1998 Independent Chairman of the Board, President, Chief Executive Officer
Robert Edwards 55 2004 Chief Financial Officer, Executive Vice President
Diane Dietz 44 2008 Executive Vice President, Chief Marketing Officer
Larree Renda 52 2010 Executive Vice President; President of Safeway Health Inc
Bruce Everette 59 2001 Executive Vice President - Retail Operations
Melissa Plaisance 51 2004 Senior Vice President - Finance and Investor Relations
David Bond 57 Senior Vice President - Finance and Control
David Ching 58 1994 Senior Vice President, Chief Information Officer
Robert Gordon 59 2005 Senior Vice President, General Counsel, Secretary, Chief Governance Officer
Russell Jackson 53 2007 Senior Vice President - Human Resources
Donald Wright 58 1991 Senior Vice President - Real Estate and Engineering
David Stern 56 2002 Senior Vice President - Planning and Business Development
Jerry Tidwell 59 2003 Senior Vice President - Supply Operations
Darren Singer 2011 Senior Vice President - Pharmacy, Health and Wellness
Paul Hazen 70 2008 Lead Independent Director
Kenneth Oder 63 2008 Independent Director
William Tauscher 61 1998 Independent Director
Janet Grove 60 2004 Independent Director
Mohanbir Gyani 59 2004 Independent Director
Frank Herringer 68 2008 Independent Director
Arun Sarin 56 2009 Independent Director
Michael Shannon 52 2009 Independent Director
T. Gary Rogers 68 2011 Independent Director
Contact Information
Address: 5918 Stoneridge Mall Rd.
Pleasanton, CA 94588-3229