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TOPIC: Rumors of takeover of SAFEWAY, Offloading its 37 Genaurdi's stores.

apcowboy

Founder of The Meat Cutter's Club

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Date: Apr 24, 2012

Rumors of takeover of SAFEWAY, Offloading its 37 Genaurdi's stores.	Permalink

Paul Sakuma / AP North America's second-largest supermarket chain, Safeway owns 1,678 stores across the United States and Canada, including this one in Cupertino. Charles Grom, an analyst with Deutsche Bank, called Safeway "arguably a broken model" and suggested a leveraged buyout - taking it private - might be a good idea. That was tried once before, when KKR bought Safeway in 1986 - then sold it in 1999 for a $7 billion profit. Others have floated a takeover by a bigger company, such as Kroger, the largest supermarket chain in the country and second only to Walmart as the biggest general retailer. "One thing that will help is if consumers get into a less frugal mode and go more for service, which Safeway offers," Brown said. "Safeway has great locations, especially in Northern California, and convenience remains a big plus. They're fine in this region, but not in others. That's where the pain is. I wouldn't be surprised if they offload stores in some of them." In fact, Safeway is offloading its 37 Genaurdi's stores. READ THE WHOLE STORY: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2012/04/21/BUMM1O6P9S.DTL __________________ Leon Wildberger Executive Director

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