Pay'n Takit
| Company type | Subsidiary |
|---|---|
| Industry | Supermarket |
| Predecessor | Skaggs United Stores, Skaggs Cash Stores, Sam Seelig Company |
| Founded | 1926 |
| Founder | Marion Barton Skaggs |
| Fate | Acquired by Albertsons in January 2015 |
| Successor | Albertsons |
| Headquarters | Pleasanton, California , United States |
Area served | Western United States, Mid-Atlantic United States |
Key people | Marion Barton Skaggs (founder), Charles E. Merrill (early investor and leader) |
| Products | Grocery products, general merchandise, bakery, deli, floral, pharmacy services, Starbucks coffee outlets, vehicle fueling stations |
| Owner | Albertsons (subsidiary) |
| Parent | Albertsons |
| Website | www |
Overview
Safeway, Inc. operates as a prominent American supermarket chain offering a wide range of grocery products, general merchandise, and specialized departments including bakery, deli, floral, and pharmacy services. The company also features Starbucks coffee outlets and vehicle fueling stations. Its core market is concentrated in the Western United States, with additional locations along the Mid-Atlantic corridor of the Eastern Seaboard.
Currently functioning as a subsidiary of Albertsons, Safeway was acquired in January 2015 by a group of private equity firms led by Cerberus Capital Management. The corporate headquarters remain situated in Pleasanton, California.
History
In 1921, Marion Barton Skaggs, who had prior experience in the grocery industry, relocated to Portland, Oregon, where he launched four grocery outlets. This retail network expanded rapidly as Skaggs brought in his five brothers to assist in scaling the business. By 1926, the family brand encompassed 428 stores across ten states. That same year, Skaggs nearly doubled the enterprise's size by merging with 322 Sam Seelig Company stores and formally incorporating as "Safeway, Inc." He chose to avoid using his own name for the corporation, believing a lasting chain should carry a more neutral identity.
The name Safeway was selected because these stores operated solely on a cash-and-carry basis, eschewing the traditional practice of extending credit to shoppers. This approach was considered the "safe way" to purchase groceries since it prevented families from accumulating debt through their food bills—a common problem contributing to the economic hardships of the Great Depression in the United States. Consequently, the company's initial motto was: "Drive the Safeway. Buy the Safeway."
The 1926 consolidation was initiated by Charles E. Merrill, founder of the Merrill Lynch brokerage firm, who recognized an opportunity to unify the West Coast grocery market. Merrill acquired a 322-store Safeway chain from W.R.H. Weldon, who wanted to exit retail and focus on wholesale. In June 1926, Merrill presented Skaggs with an offer: $7 million in cash or $1.5 million plus 30,000 shares in the combined company. Skaggs accepted the latter proposal. On July 1, 1926, Safeway merged with 673 stores from Skaggs United Stores of Idaho and Skaggs Cash Stores of California. Following this merger, M. B. Skaggs assumed the role of Chief Executive Officer. Two years later, Safeway was listed on the New York Stock Exchange. During the 1930s, Safeway pioneered several innovations such as pricing produce by weight, introducing "sell by" dates on perishable goods, implementing nutritional labels, and establishing some of the earliest parking facilities.
This merger instantly established Safeway as the largest grocery chain west of the Mississippi. At that time, its headquarters were located in Reno, Nevada. In 1929, operations moved to a former grocery warehouse in Oakland, California, which had a dedicated zip code of 94660. The company maintained its Oakland headquarters until relocating in 1996 to new offices near Stoneridge Mall in Pleasanton, California. Notably, during the 1930s, Charles E. Merrill temporarily left Merrill Lynch to assist with managing Safeway.
In the late 1930s, the New Negro Alliance organized a boycott against Sanitary Grocery Company—a Safeway subsidiary—to pressure store owners into hiring African American employees, particularly in predominantly black neighborhoods. The Sanitary Grocery Company obtained an injunction against this boycott that was upheld by the Washington, D.C., Court of Appeals. This legal battle culminated in the landmark 1938 U.S. Supreme Court ruling New Negro Alliance v. Sanitary Grocery Co., which affirmed the right to peaceful protest in labor disputes.
In 1969, both the Black Panther Party and the United Farm Workers initiated boycotts targeting Safeway stores—the largest grocery chain on the U.S. West Coast at that time. The Black Panthers protested Safeway's refusal to support their Free Breakfast for Children Program, designed to provide daily hot meals for disadvantaged youth nationwide. Meanwhile, the United Farm Workers boycotted Safeway because it continued selling California grapes despite their union-led national grape boycott. These two groups demonstrated solidarity in their campaigns against Safeway, including a notable 1973 protest outside an Oakland Safeway store where participants carried signs reading "Boycott Safeway, Boycott Grapes."
Expansion
Safeway's initial public offering in 1927 was priced at $226 per share (adjusted for inflation). Following a five-for-one stock split in 1928, the share price dropped to below $50 (inflation-adjusted). In the ensuing years, Charles Merrill, backed financially by Merrill Lynch, embarked on an assertive acquisition campaign targeting various regional grocery store chains, employing a rollup approach. Among the earliest purchases were substantial portions of the Piggly Wiggly chain, acquired during its dismantling orchestrated by Merrill Lynch and Wall Street interests.
| Year | Company | Number of Stores | Region |
|---|---|---|---|
| 1926 | H.G. Chaffee | grocery stores | Southern California |
| 1926 | Skaggs Cash Stores | 679 grocery stores | Idaho |
| 1926 | Skaggs United Stores | (included above) | California |
| 1928 | Arizona Grocery/Pay'n Takit Stores | 24 grocery stores; 24 meat markets | Arizona |
| 1928 | Newway Stores | 15 grocery stores; 11 meat markets | El Paso, Texas |
| 1928 | Sanitary Grocery (including some Piggly Wiggly) | 429 grocery stores; 67 meat markets | Washington D.C. and Virginia |
| 1928 | Eastern Stores Inc. | 67 grocery stores; 127 meat markets | Baltimore, Maryland |
| 1928 | Piggly Wiggly Pacific | 91 grocery stores; 84 meat markets | Oakland, California |
| 1928 | Bird Grocery Stores (including some Piggly Wiggly) | 224 grocery stores; 210 meat markets | Missouri, Texas, Arkansas, Iowa, Kansas, Nebraska |
| 1929 | Piggly Wiggly West | 91 grocery stores; 84 meat markets | Northern California, Hawaii, Colorado |
| 1929 | Sun Grocery | 91 grocery stores; 84 meat markets | Tulsa, Oklahoma |
| 1931 | MacMarr Stores | grocery stores | Los Angeles |
| 1936 | Stores acquired from Kroger | 53 grocery stores | Oklahoma |
| 1941 | Daniel Reeves | 498 grocery stores | New York |
| 1941 | National Grocery | 84 grocery stores | New Jersey |
| 1958 | Thriftway Stores (Iowa) | 30 grocery stores | Iowa |
| 2016–2017 | Andronico's | 9 stores | San Francisco Bay Area |
Most deals involved exchanging stock certificates rather than cash payments. Many of the acquired chains continued operating under their original names until the mid-1930s.
In 1929, speculation arose regarding a potential merger between Safeway and Kroger. Nearly a century later, in late 2022, this prospect resurfaced with the announcement of a merger between Albertsons Companies and Kroger Co.
The chain reached its highest store count of approximately 3,400 locations in 1932 before expansion ceased. The economic hardships of the Great Depression began to affect operations, prompting Safeway to prioritize cost management. Concurrently, smaller neighborhood grocers were increasingly replaced by larger supermarket formats. By 1933, Safeway was ranked second in the grocery sector behind The Great Atlantic & Pacific Tea Company and ahead of Kroger.
In 1935, Safeway divested its nine Honolulu locations due to "the difficulty of adequate supervision." That same year, independent grocers in California successfully lobbied for a progressive tax targeting chain stores. Prior to the law’s implementation, Safeway petitioned for a referendum on the legislation. The following year, California voters repealed the tax.
Safeway introduced a money-back guarantee on meat products in 1936.
International expansion
| Country | Year | Number of stores | |
|---|---|---|---|
| Canada | 1929 | 213 (2013) | |
| United Kingdom | 1962 | 131 (1986) | |
| Australia | 1962 | 123 (1984) | 187 (rebranded Woolworths 2008) |
| West Germany | 1963 | 35 (1984) | |
| Mexico | 1981 | 137 (2007) | |
| Saudi Arabia | 1982 | 6 (1984) | |
| Jordan | 2003 | 6 (2009) |
The company initiated its international presence in Canada in 1929 with 127 outlets, which later became Canada Safeway Limited before being sold to Sobeys in 2013. Expansion continued into the United Kingdom in 1962, forming Safeway plc, followed by entry into Australia in 1963 as Safeway Australia, and into West Germany in 1964. During the 1980s, Safeway also operated in Saudi Arabia and Kuwait through a licensing and management partnership with the Tamimi Group. In addition, in 1981, it secured a 49% stake in Mexican retailer Casa Ley.
Typically, Safeway's strategy for international growth involved acquiring one or multiple smaller chains within a target country. However, its ventures into Saudi Arabia and Kuwait were established via joint ventures, where initial stores adopted Safeway's systems and technologies before expanding organically. Notable acquisitions include:
| Year | Company | Store count | Region |
|---|---|---|---|
| 1929 | Kroger (Canada) | 9 grocery outlets | Canada |
| 1935 | Piggly Wiggly (Canada) | 179 locations | Canada |
| 1962 | John Gardner Limited | 11 stores | United Kingdom |
| 1963 | Pratt Supermarkets | 3 stores | Melbourne, Australia |
| 1963 | Mutual Stores | unknown number of outlets | Australia |
| 1964 | Big Bär Basar (Big Bear Bazaar) | 2 stores | West Germany |
| 1980 | Jack the Slasher | 31 locations | Queensland, Australia |
| 1981 | Partial ownership of Casa Ley (49%) | unknown number of outlets | Mexico |
1940s–1970s
In 1941, Marion B. Skaggs stepped down from his position on Safeway’s board of directors.
By the year 1947, Safeway’s annual sales surpassed $1 billion for the first time. This figure climbed to nearly $1.5 billion by 1951. The company introduced the now-familiar S logo in 1962.
Robert A. Magowan assumed the role of Chairman of Safeway’s Board in 1955. He was married to Doris Merrill, daughter of Charles Merrill. Magowan took on the presidency a year later in 1956 and held that position until his retirement in 1968; he remained on the board until 1978. In addition, Magowan recruited Michael F. Concannon, an expert meat processing manager, to lead North American meat operations from Oakland starting in 1966. Concannon played a key role in launching facilities such as those in Stockton and Wichita as well as initiating meat processing activities in Canada during the following decade.
Safeway was the first major food retailer to establish itself within the newly admitted state of Alaska by opening its inaugural store there in 1959. Over subsequent years, three locations opened in Anchorage and one in Fairbanks. The Fairbanks store was built on land formerly known as The Line, a historic red-light district that had existed for nearly fifty years. Most Alaskan Safeway stores were developed by Anchorage real estate entrepreneur Wally Hickel, who later served as Alaska’s governor and U.S. Secretary of the Interior.
Also in that year, architects Wurster, Bernardi & Emmons designed Safeway’s first "marina-style" supermarket located in San Francisco’s Marina District. This design featured distinctive barrel-vaulted roofs and included exterior mosaic murals on the building’s east facade created by artist John Garth. These murals illustrated global food transportation themes; Garth also contributed similar artwork to three other Safeway locations. Over the following decade, hundreds of stores adopted this architectural style.
In a strategic move during 1961, Safeway divested its operations within New York State by selling them to Finast. Two years later, it re-entered the Hawaiian market after having exited it back in 1934. Additionally, one leased store in Culver City was converted into a theater by animator and filmmaker Don Bluth until its closure as such in 1967.
By the end of the decade, specifically in 1969, Safeway attempted market entry into both Toronto, Canada and Houston, Texas through newly established stores rather than acquisitions; however, competition proved too strong and these efforts ultimately did not succeed.
In response to counterfeit currency issues during the late seventies, Safeway implemented a policy instructing employees to identify fake $100 bills by checking for the phrase "In God We Trust." Unfortunately, this approach failed to recognize that some legitimate bills lacked this wording due to historical variations. Consequently, an innocent customer was mistakenly accused of passing counterfeit money and subjected to arrest and strip-searching before authorities confirmed the error with federal officials. The resulting legal case concluded with a $45,000 joint liability verdict against both Safeway Stores and Oakland city authorities upheld by California’s Supreme Court on December 26, 1986.
In 1979, Peter Magowan—son of Robert Magowan and grandson of Charles Merrill—was appointed chairman and CEO of Safeway. Over his thirteen-year leadership tenure, he oversaw a significant reduction in the company’s store count.
1980s: Acquisition and Divestitures
After a hostile takeover attempt by corporate raiders Herbert and Robert Haft, the company was ultimately purchased in 1986 by Kohlberg Kravis Roberts (KKR), who acted as a white knight. With KKR's support, the business was taken private, incurring substantial debt in the process. To manage this financial burden, the company began divesting numerous operational segments.
| Year | Division sold | Number of stores | Sale amount | Purchaser | Result | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1982 | Omaha/Sioux Falls | 64 stores | n/a | Various buyers including Hy-Vee & Fareway | Stores continue operating under Hy-Vee (Omaha/Lincoln/Sioux Falls) and Fareway (Sioux City, IA) | |||||||||
| 1985 | Southern Ontario | 22 stores | n/a | Oshawa Group | Oshawa was acquired by Sobeys in 1998 | |||||||||
| 1985 | West Germany | 36 stores | n/a | Bolle | Stores eventually integrated into Edeka | |||||||||
| 1987 | Dallas | 141 stores | n/a | Unable to sell entire division as a whole | Divided and sold to Kroger, Brookshire's, Tom Thumb Food & Pharmacy (now part of Safeway), Minyard Food Stores, and Furr's; some locations closed | |||||||||
| 1987 | Salt Lake City | 60 stores | $75m | Farmer Jack | Farmer Jack resold stores in parts below book value in 1988 to Fleming Companies and Albertsons; Farmer Jack was acquired by A&P later in 1988 | |||||||||
| 1987 | El Paso/Albuquerque | 59 stores | $140m | Furr's Supermarkets (see Roy Furr) | Company faced financial issues; some stores underwent management buyout; others sold; declared bankruptcy in 2001 | |||||||||
| 1987 | Oklahoma | 106 stores | n/a | Management buyout with Clayton, Dubilier & Rice, creating Homeland (supermarket) | Later went public then filed for bankruptcy in 1996. Subsequently acquired by and became a subsidiary of Associated Wholesale Grocers. AWG sold Homeland chain to employees in December 2011. | |||||||||
| 1987 | Safeway UK | 121 stores | US$1b | Argyll Foods | Stores operated under Safeway brand until 2005, when acquired by Morrisons | |||||||||
| 1987 | Richmond | 62 stores | n/a | Various purchasers | Division merged into Washington DC division (later Eastern Division); locations eventually sold to competitors including Farm Fresh Food & Pharmacy | |||||||||
| 1988 | Kansas City | 66 stores | n/a | Morgan Lewis Githens & Ahn/W S Acquisition Corp. | Rebranded as Food Barn; filed for bankruptcy in 1994; stores sold to Associated Wholesale Grocers, who either closed or transferred them to their members. | |||||||||
| 1988 | Little Rock | 51 stores | n/a | Acadia Partners | Renamed Harvest Foods; went bankrupt in 1995; locations divested; some later part of Associated Wholesale Grocers following collapse of Affiliated Foods Southwest | |||||||||
| 1988 | Houston | "99 stores" | "$174.6m" | "Management buyout with Duncan Cook and Co. and the Sterling Group" | "Renamed as AppleTree Markets; declared bankruptcy in 1992; assets sold to competitors" | "" | "" | "" | "" | "" | "" | "" | "" | "" |
The majority of Safeway’s divested domestic units encountered significant difficulties under new ownership. Nearly every acquiring organization experienced financial distress, leading to bankruptcy or subsequent acquisitions. Notable exceptions include Hy-Vee and Fareway, which successfully maintained operations at their purchased locations.
On the international front, the divestitures fared better for buyers. The UK-based Safeway plc was sold to Argyll Foods, which was later absorbed by Morrisons in 2004. Similarly, Safeway Australia was divested to Australian company Woolworths Limited in 1985.
In Southern California, including major markets such as Los Angeles and San Diego, Safeway offloaded its stores to the Vons Companies in 1988, receiving a 30 percent stake in Vons as part of the transaction. Concurrently, Safeway reduced its footprint in areas like Fresno, Modesto, Stockton, California#Stockton, and Sacramento. In 1996, remaining Fresno Safeway outlets were acquired by Save Mart Supermarkets.
During the period from 1987 through 1989, numerous locations within the Eastern Division were shuttered or sold, including many recently added outlets on the DelMarVa Eastern Shore.
By this stage, Safeway’s nationwide footprint had contracted significantly, retaining operations primarily across several western states and Northern California along with the Washington, D.C. metropolitan area. Overall, close to half of the chain’s approximately 2,200 stores were divested.
Growth during the 1990s
Safeway returned to the public market in 1990, followed by the sale of its Jordan stores to the Masri family in 1991. By December 2003, the Masri family transferred ownership to The Sultan Center based in Kuwait. Throughout the late 1990s and early 2000s, Safeway aggressively expanded into new regions under various local brand names. In 1997, the company completed the acquisition of the remaining shares of Vons Companies, regaining a presence in Southern California. The following year, Safeway purchased Chicago’s Dominick's Finer Foods from Yucaipa Companies. Although Safeway had previously operated stores in Alaska, it further strengthened its footprint there by acquiring Carrs-Safeway in 1999. That same year also saw the company's acquisition of Houston-based Randall's Food Markets, which included locations in Austin, Texas. Through Randall's other brand, Tom Thumb, along with the gourmet grocer Simon David, Safeway gained access to the Dallas-Fort Worth market. This acquisition marked the beginning of Safeway-operated fuel stations, as Randall's stores already featured gas pumps.[1]
In 2000, Safeway initiated grocery delivery services[2]. The following year, it acquired the family-run Genuardi's chain operating in Pennsylvania, New Jersey, and Delaware. Around this period, Safeway also established the subsidiary Blackhawk Network, specializing in prepaid financial products and third-party prepaid card distribution. Notably, Genuardi's would be Safeway's final grocery chain acquisition.
Lifestyle Store Concept
By the early 2000s, Safeway’s efforts to expand beyond its West Coast base had met with limited success; critics pointed to issues with Safeway’s brand positioning and West Coast-centric buyers. Meanwhile, Dominick's was put up for sale and both Randalls and Genuardi's experienced declining market shares.[3]
To revive struggling divisions and enhance brand engagement while distinguishing itself from competitors, Safeway launched a $100 million brand repositioning initiative called "Ingredients for life" in 2005.[4][5]
This rebranding effort introduced a revamped logo alongside a new tagline "Ingredients for life" accompanied by a four-panel life icon featured throughout retail locations and advertising materials. Additionally, a web-based nutrition tool named "FoodFlex" was launched to assist customers. Numerous outlets were converted to the "Lifestyle" store model. Designed by Michigan-based PPC Design, this concept incorporated inviting décor with warm tones and subdued lighting. It involved substantial store layout renovations, new staff uniforms, sushi and olive bars additions, and installation of in-store Starbucks kiosks equipped with grocery cart cupholders. The strategy also leveraged promotions tailored through extensive loyalty card data to set Safeway apart from competitors. This design became standard for both new builds and remodeled stores.
By late 2004, there were 142 locations operating under the "Lifestyle" format across the United States and Canada. Plans were underway to open or renovate approximately 300 additional stores using this concept within the next year. Stores featuring the "Lifestyle" design consistently reported significantly higher average weekly sales compared to traditional formats. By the close of 2006, stock prices had risen considerably, demonstrating the positive impact of this rebranding on financial performance.[5]
In July 2007, Safeway’s stock value increased amid rumors that Sears Holdings Corporation was considering a takeover bid.[6]
In 2011, Safeway entered into a distribution agreement with UNFI, effective October that year, to supply all U.S.-based Safeway banners with non-proprietary natural, organic, and specialty products.[7]
Decline and acquisition by Albertsons
In 2004, the Genuardi's supermarkets in Wilmington, Delaware were rebranded under the Safeway banner following legal complications related to a union agreement made by early Safeway management in Delaware, which had ceased operations in 1982. Presently, Safeway's Delaware outlets are managed through division offices situated in the Baltimore–Washington metropolitan area, where Safeway has maintained a strong market presence for many years.
By 2012, Safeway had phased out the Genuardi's brand in the Philadelphia metropolitan region through a combination of store closures and sales. Giant purchased 15 of these stores and made an offer on a 16th location, which was ultimately sold to McCaffrey's, a regional chain, as part of an antitrust agreement. Additionally, Weis acquired three former Genuardi's stores. Several underperforming Genuardi's outlets had already shuttered during 2010 and 2011 as their leases expired.
Also in 2012, then-CEO Steve Burd committed to establishing blood-testing centers operated by Theranos at approximately 800 Safeway sites, with an investment of $350 million. The initiative aimed to deliver blood test results directly at checkout counters. However, this venture did not succeed, resulting in significant financial setbacks for both the company and Burd. Following the project's cancellation, spaces initially intended for Theranos laboratories were either converted into Quest Diagnostics testing facilities or repurposed as pharmacy waiting areas for vaccinations; some stores were closed permanently.
In 2013, reports emerged that Cerberus Capital Management was evaluating potential transactions involving all or parts of Safeway. On June 12 of that year, Sobeys announced plans to acquire Safeway’s Canadian operations for CAD$5.8 billion, pending regulatory approval. This acquisition was designed to strengthen Sobeys’ foothold in Western Canada, where Safeway held a dominant position. The purchase was finalized five months later; Sobeys retained the Safeway brand on its new stores but aligned private-label products more closely with its own offerings.
Later that year, in October 2013, Safeway declared its intention to divest and close the remaining Dominick's supermarkets in the Chicago area by early 2014. This announcement prompted competitors to pursue hiring former Dominick’s employees and acquire valuable store locations. One Dominick’s store in Bannockburn, Illinois continued operating until January 25, 2014.
On February 19, 2014, Safeway began exploring options to sell the company. Subsequently, on March 6, longtime competitor Albertsons—supported by Cerberus Capital Management—revealed plans to acquire Safeway for $9.4 billion, with the transaction anticipated to finalize during the fourth quarter of that year. Following the merger, many of Safeway’s private-label brands and information technology systems were integrated into Albertsons’ infrastructure, replacing legacy platforms. As part of this deal, Blackhawk Network was spun off as an independent entity but remained Safeway’s exclusive gift card provider until 2021. At that time, Albertsons transitioned branded gift card services and network activation to InComm while Blackhawk continued supplying store gift cards and credit until January 5, 2023. After this date, remaining Blackhawk-issued cards were deactivated; however, cards activated prior continue to be valid through 2037.
Safeway as a supermarket brand
The merger between Safeway and Albertsons was officially completed on January 30, 2015.[8] As a condition to satisfy antitrust regulations following this consolidation, Haggen, a grocery chain based in Bellingham, Washington, acquired 146 stores previously operated by Vons, Albertsons, and Pavilions across several states including Washington, Oregon, California, Nevada, and Arizona. This divestiture impacted key urban centers such as Los Angeles, Portland, Phoenix, Tucson, San Diego, Bakersfield, Seattle, and Las Vegas.[9] Additional store sales also took place along the West Coast and in the Dallas-Fort Worth Metroplex market.
Post-acquisition, Safeway and its affiliated banners—Randalls, Tom Thumb, Vons, and Pavilions—were consolidated under Albertsons’ operational structure. Safeway's exclusive private-label products were introduced across all Albertsons-Safeway brands, supplanting Albertsons’ former SuperValu-branded merchandise. Furthermore, all former Albertsons locations underwent upgrades where their telephone systems and NCR POS terminals were replaced with Safeway’s Toshiba/IBM equipment.
On January 11, 2016, it was revealed that the last three Albertsons stores in Florida—situated in Largo, Altamonte Springs, and Oakland Park—would be rebranded as Safeway stores. This marked the debut of the Safeway brand within Florida’s supermarket landscape.[10] However, these outlets had a brief tenure under Safeway branding as Albertsons exited the Florida market in 2018 by selling these locations to Publix.[11]
In November 2016, Safeway Inc. reached an agreement to acquire the remaining Andronico's stores primarily located in the San Francisco Bay Area. At the time of Andronico's closure as an independent entity, it operated nine locations: three in Berkeley (Solano Avenue, Telegraph Avenue, and Shattuck Avenue); one each in Los Altos’ Rancho Shopping Center; San Francisco’s Irving Street; Stanford Shopping Center in Palo Alto;[12] Walnut Creek;[13] Danville;[14] and one in San Anselmo within Marin County. The closures commenced in January 2017 with the North Berkeley location shutting down first.[15] By February 2019, Safeway announced plans to potentially reinstate the Andronico's brand name. As of February 2020, six stores were operating under the Andronico's Community Market banner with an additional location planned. Four Bay Area stores initially renamed Safeway Community Market after acquisition retained their original branding at the flagship Sunset District location. Additionally, a new Andronico’s store opened in Monterey in January 2019.[16] In early 2020, four Safeway Community Market locations reverted to the Andronico’s name—two in Berkeley along with stores in Los Altos and San Anselmo.[17] Currently, these outlets operate as a distinctive district within Northern California’s division structure enabling a management style akin to that of independent Andronico’s.
Starting in 2018, both Safeway and Albertsons initiated renovations featuring a new design concept that departs from the early-2000s "Lifestyle" décor. This refreshed look incorporates more vibrant hues alongside tiled backsplashes accentuating department signage. The companies also transitioned most lighting systems to energy-efficient LEDs. Previously installed fluorescent tubes illuminated main aisles while halogen spotlights provided accent lighting within departments or display cases creating a softer atmosphere. The updated standard involves retrofitting existing fluorescent fixtures with LED tubes and substituting halogen spotlights with LED strips or ceiling-mounted office-style fixtures focusing on uniform illumination rather than localized highlights. Employee workspaces and office lighting were similarly upgraded throughout 2021.
In a notable legal development during 2019, Safeway was mandated by a Santa Clara County court to pay $12 million after a cashier was denied their legally protected right to sit while working—a provision guaranteed under California labor law ensuring workers are provided with suitable seating.[18]
August of 2021 saw the introduction of FreshPass by Safeway—a subscription-based service offering unlimited free delivery and pickup options alongside exclusive member discounts and promotions. This launch coincided with an updated mobile application enabling scan-and-pay functionality available in select regions. Additionally incorporated were QR code payments and digital receipt features within the app. The loyalty program previously known as "Just for U" or J4U since its inception in 2012 was streamlined simply as "for u" aligning with FreshPass’ debut.[19]
Several Albertsons locations have been rebranded under the Safeway banner across different markets including Denver,[20] as well as Seattle.[21]
In October 2022, Albertsons announced a merger agreement with competitor Kroger—which operates chains such as King Soopers and City Market.[22] Following initial regulatory resistance, both companies agreed to divest over four hundred stores to competitor C&S Wholesale Grocers.[23] Despite this concession, several states have filed legal challenges against the merger. In February of 2024 Colorado Attorney General Phil Weiser initiated litigation citing concerns voiced by consumers and employees; he stated that the merger “would result in store closures, increased prices, reduced employment opportunities, diminished customer service quality, and less robust supply chains.”[24]
Private brands
Safeway launched an organically grown and processed product line called "O Organics" in 2006. This brand has achieved significant success, with annual sales exceeding $1 billion by 2017. Introduced in 2011, the Open Nature brand has also performed well and eventually consolidated several former private labels, including Bright Green, Signature Home, and Lucerne Plant-Based items.
Following the acquisition by Albertsons, the merged entity adopted Safeway’s private label strategy, rebranding "Safeway Select" as "Signature Select" and refreshing the design and packaging across the entire product range.
Grocery delivery
Safeway began providing online grocery delivery services in selected markets starting in 2000, initially focusing on the Pacific Northwest. This offering expanded to cover six states plus the District of Columbia, mainly serving areas on the West and East coasts. The company has rapidly increased locations offering contactless curbside pickup under the name "DriveUp & Go," while continuing to provide both scheduled delivery options and on-demand fulfillment through partners like Instacart and DoorDash.
In January 2021, Albertsons revealed plans to lay off unionized grocery delivery drivers employed at Safeway stores in Northern California, shifting these delivery operations to app-based platforms such as Instacart. This change impacted only those working in the traditional scheduled delivery roles within stores; however, all affected employees were offered alternative positions within the organization.
Past concepts
Over the years, Safeway has explored and tested various store formats and thematic approaches across its retail locations.
In 1963, Safeway introduced the Super S model, which integrated a general merchandise and drug store alongside a new Safeway supermarket within a single building. Although these stores shared an entrance, they functioned independently with separate checkout areas. The inaugural Super S store launched in Anchorage, Alaska. By 1965, 22 Super S outlets were sold to Skaggs Drug Stores, with the remainder divested by Safeway in 1971.
The following year, in 1964, Safeway experimented with a two-story International Store at 12th and F Street in Washington, D.C.. This location featured a traditional Safeway supermarket on the ground floor and an upscale gourmet market above. The International Store's offerings included exotic meats such as wild boar steaks, snow hare, suckling pig, and reindeer steaks.
During the 1970s, the company sought to revitalize older, smaller properties by launching discount formats like Food Barn for groceries and Liquor Barn for alcoholic beverages. Additionally, Safeway piloted the Town House concept in Washington, D.C., targeting apartment residents with smaller stores, alongside Bon Appetit—a gourmet store trialed in San Francisco and Tiburon, California.
In 1969, Safeway entered into a joint venture with Holly Farms Poultry Industries (now part of Tyson Foods) to create Holly Farms Fried Chicken, marking its entry into the fast food sector to rival competitors such as KFC. The first outlet debuted in Colonial Heights, Virginia in August of that year.
Safeway also expanded its portfolio by acquiring Pak 'n Save Foods—a warehouse-style grocery concept—through its 1983 acquisition of Brentwood in Northern California. Although initially distinguished by pricing strategies and bulk sales focus, these stores have since aligned operationally and functionally with standard Safeway supermarkets. As of 2023, only two Pak 'n Save locations remain active in San Leandro and Emeryville, with all other sites either shuttered or converted into conventional Safeway stores.
Logos
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Safeway Medallion emblem, 1946
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The Ribbon Leaf emblem, 1982
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Medallion logo in tile format, July 2005
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Present-day logo, 2006
Support locations
- California
- Pleasanton, California (Headquarters), Corporate Call Center, IT Support Services, Retail Pricing
- Colorado
- Denver, Colorado (Offices, Safeway Security, Trucking)
- Arizona
- Phoenix, Arizona (Offices, Accounting Offices, IT)
- Maryland
- Lanham, Maryland (Eastern US Headquarters)
In-store music and announcements
The music played inside Safeway stores is supplied by Stingray Advertising. This service delivers commercials and promotional content for Safeway products and services that rotate alongside the background music. The store’s distinctive "Attention Service Desk" announcements—used to notify employees of phone calls on hold—are produced via Cisco's Call Manager Server and broadcast as overhead messages.
Animal welfare issues
In 2012, an undercover investigation by Mercy for Animals at Christensen Farms—a pork supplier for Safeway as well as Walmart, Costco, Kroger, and Kmart—was conducted. Prior to the public disclosure of this investigation, Safeway declared it would require its pork suppliers to eliminate the use of gestation crates gradually.
Back in 2008, Greenpeace began evaluating major U.S. supermarket chains based on their seafood sustainability practices. According to Greenpeace U.S. CEO Phil Radford, overfishing affects approximately three-quarters of global fish populations, with 90% of top marine predators already depleted. The assessment criteria included the volume of threatened fish species sold by supermarkets, their seafood procurement policies, and the ocean conservation legislation they supported. Greenpeace’s annual Carting Away the Oceans (CATO) report scores supermarkets from 1 to 10—where 1 indicates minimal sustainability efforts and 10 represents leading sustainable seafood policies. In the 2013 CATO Report, Safeway earned the second-highest rating (7.1 out of 10) by ensuring its store-brand canned tuna was sourced sustainably and advocating for science-based ocean protection policies.
In 2016, Albertsons—the parent company of Safeway—joined a growing number of companies committing to "cage-free" egg sourcing. The company announced plans to transition entirely to cage-free eggs by 2025 following campaigns led by The Humane League, Mercy for Animals, The Humane Society of the United States, among others. After California Proposition 12 was enacted, Lucerne and O Organics completed their switch to fully cage-free egg production at their California facilities in January 2022.
401(k) Plan Mismanagement Litigation
In July 2021, Safeway Inc. along with its co-defendants agreed to an $8.5 million resolution in a class action suit concerning alleged mismanagement of the company’s 401(k) retirement savings plan. The case, Terraza v. Safeway Inc. et al., was initiated in 2016 within the United States District Court for the Northern District of California. Plaintiffs claimed that Safeway, the Safeway Benefit Plans Committee, and investment consultant Aon Hewitt Investment Consulting, Inc. violated their fiduciary responsibilities under the Employee Retirement Income Security Act (ERISA), causing financial detriment to more than 30,000 individuals enrolled in the plan.
See also
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- List of supermarket chains in the United States
- Safeway (Australia)—Acquired by Woolworths Limited Australia in 1985; all stores rebranded as Woolworths Supermarkets between 2008 and 2017.
- Safeway (Canada)—Purchased by Sobeys in 2013; continues operating under the Safeway brand.
- Safeway (UK)—Sold to Argyll Foods in 1987; retained the Safeway name until 2005 following acquisition by Morrisons in 2004.
References
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External links
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- Pages with broken file links
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- Articles with short description
- Commons category link from Wikidata
- Official website not in Wikidata
- Safeway Inc.
- Albertsons
- Supermarkets of the United States
- Superstores in the United States
- Online grocers
- Companies based in Pleasanton, California
- American companies established in 1915
- Retail companies established in 1915
- 1915 establishments in Idaho
- Economy of the Western United States
- Companies formerly listed on the New York Stock Exchange
- 1986 mergers and acquisitions
- Skaggs family
- Supermarkets based in California
- 2015 mergers and acquisitions
- Kohlberg Kravis Roberts companies
- Defunct supermarkets of the United States