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Kroger VS. Safeway

Kroger VS. Safeway. Gina Tedesco Morgan Phillips. About Kroger. One of nations largest grocery retailers Fiscal 2008 sales of $76.0 billion Store formats include grocery and multi-department stores, convenience stores and mall jewelry stores. Operate under nearly 2 dozen banners

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Kroger VS. Safeway

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  1. Kroger VS. Safeway Gina Tedesco Morgan Phillips

  2. About Kroger • One of nations largest grocery retailers • Fiscal 2008 sales of $76.0 billion • Store formats include grocery and multi-department stores, convenience stores and mall jewelry stores. • Operate under nearly 2 dozen banners • All share the same belief in building strong local ties and brand loyalty with their customers

  3. Operations. • Food stores are primary business and account for 95% of total company sales • Operate 2,470 grocery retail stores in 31 states. • Hold #1 or #2 position in 39 of the 42 major markets. • 768 convenience stores, 388 fine jewelry stores,40 food processing facilities, 818 fuel centers, and 1,964 pharmacies

  4. Stratagies • Only major U.S. supermarket to operate an economical three-tier distribution system • One stop shopping strategy (supermarket fuel enters) • Supplier Diversity Program

  5. About Safeway • The nation's third-largest retail grocery chain • Revenues $9.5 billion in the third quarter of 2009 • Fiscal 2008 Sales $41,973 million (increased from 2007) • Operates under 12 banners • Offers deli, bakery, floral, pharmacy, Starbucks, and fuel stations • In 2008, Safeway named one of “America’s Healthiest Grocery Stores” by Health magazine.

  6. Operations • 1,740 stores in the United States and Canada. • Operates Groceryworks.com an internet grocer • Largest consumer brand: the Safeway Brand • Offers Blackhawk network gift cards • Retail stores • Prepaid debit gift cards • Sports and entertainment gift cards

  7. SWY Strategies • 2009-Reducing lifestyle remodels and focusing more on necessary issues to allow Safeway to have competitive advantage over competitors • Safeway believes the company can generate $1.1 billion-$1.3 billion in free cash flow as it cuts back on capital expenditures • Developing more private label offering according to customer trends • Also developing business ventures outside its supermarkets: • Blackhawk gift card

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