In the past, Safeway experienced some self-inflicted shrinking pains after acquiring supermarket chains in metro markets around Chicago, Dallas, Houston and Philadelphia. That has not deterred the company, which is now looking at the possibility of growing its store count through another acquisition, according to Reuters.
Safeway's CFO Robert Edwards told attendees at a Bank of America conference the likelihood of an acquisition was made more likely by the amount of consolidation that has been taking place in the grocery business.
To be fair to Safeway, the chain has found a formula to help begin correcting many of the mistakes it made when it acquired chains including Randalls, Dominick's Finer Foods and Genuardi's. The company's "Lifestyle" format has been heralded as a vital element of the company's recent strong financial performance. Mr. Edwards said Safeway expects to have 300 "Lifestyle" stores in operation by the end of the year.
Discussion Questions: What do you think about Safeway looking to grow through acquisition? Has the company learned from past mistakes to avoid the problems it has experienced in other markets? What are the corrections that Safeway has made in other markets where it has acquired popular local chains?