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Safeway facts for kids

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Safeway, Inc.
Subsidiary
Industry Retail / grocery
Founded 1912
Founder Sam Seelig
Headquarters Pleasanton, California, U.S.
Number of locations
904
Area served
Alaska, Arizona, California, Colorado, Delaware, Hawaii, Idaho, Maryland, Montana, Nebraska, Nevada, New Mexico, Oregon, South Dakota, Virginia, Washington, and Wyoming
Key people
  • Robert G. Miller (chairman, CEO)
    B. Kevin Turner
    (vice chairman)
  • Bob Gordon (EVP and general counsel)
Products Bakery, dairy, delicatessen, dry cleaning, frozen foods, fuel, grocery, lottery, pharmacy, photographic processing, produce, meats, snack food, liquor, flowers, and Western Union
Services Supermarket
Total assets US$17.2 billion
Number of employees
Increase Over 250,000 (2015, including Albertsons)
Parent Independent (1915–2015)
Albertsons (2015–present)

Safeway, Inc. is a well-known American supermarket chain. It sells a wide range of items, including groceries, fresh food, and general goods. Many Safeway stores also have special sections like bakeries, delis, flower shops, and pharmacies. You might even find Starbucks coffee shops and gas stations at some locations!

Safeway is now part of Albertsons, a larger grocery company. It became a subsidiary of Albertsons in January 2015. Most Safeway stores are found in the Western United States, but some are also in the Mid-Atlantic region on the East Coast. The company's main office is in Pleasanton, California.

Safeway's Early Days: A History of Growth

Safeway started in 1912. The company's name, "Safeway," was chosen because it meant customers could buy food without needing credit. This was a "safe way" to shop, as families wouldn't get into debt just by buying groceries.

How Safeway Grew Big and Strong

In 1926, a businessman named Charles E. Merrill saw a chance to bring together many grocery stores on the West Coast. He bought the 322 Safeway stores that existed then. Soon after, Safeway merged with 673 stores from Skaggs United Stores in Idaho and California. This merger happened on July 1, 1926.

This big merger instantly created the largest grocery store chain west of the Mississippi River. The company's main office moved from Reno, Nevada, to Oakland, California, in 1929. Later, in 1996, it moved to its current home in Pleasanton, California.

In the 1930s, Safeway introduced new ideas that are common today. They started pricing produce by the pound and adding "sell by" dates to fresh foods. They also added nutritional labels and were among the first to offer parking lots for shoppers.

Safeway's Role in Important Social Events

In the late 1930s, a group called the New Negro Alliance encouraged people to not shop at a Safeway-owned store. They wanted the store to hire more Black employees, especially in Black neighborhoods. This led to a major U.S. Supreme Court decision in 1938. The court case, New Negro Alliance v. Sanitary Grocery Co., protected the right to peaceful protest in disagreements about jobs.

Later, in 1969, two other groups, the Black Panther Party and the United Farm Workers, also encouraged people to not shop at Safeway. The Black Panthers wanted Safeway to help their program that gave free breakfast to children. The United Farm Workers wanted Safeway to stop selling California grapes because of a nationwide protest. These groups supported each other in their efforts.

Safeway's Expansion Across the Map

Safeway grew quickly by buying many smaller grocery store chains. This helped them become a very large company.

Year Firm # of stores Location
1926 H.G. Chaffee grocery stores Southern California
1926 Skaggs Cash Stores 679 grocery stores Idaho
1926 Skaggs United Stores (in 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 (incl. 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 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
Safeway store numbers by state in 1932
Safeway store number by state and province in 1932

By 1932, Safeway had grown to 3,400 stores. However, the Great Depression caused them to slow down their expansion. They started focusing on controlling costs and replacing smaller stores with larger supermarkets. By 1933, Safeway was the second-largest grocery chain, right after The Great Atlantic & Pacific Tea Company.

Change in number of safeway stores 1925 1960
Change in number of Safeway stores from 1925 to 1960

Safeway Goes Global: International Stores

Safeway also expanded outside the United States.

Country Year # 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)

They opened stores in Canada in 1929, the United Kingdom in 1962, Australia in 1963, and West Germany in 1964. Safeway also had stores in Saudi Arabia and Kuwait through special agreements. In 1981, they bought a part of a Mexican retailer called Casa Ley.

Year Firm # of stores Location
1929  ? 9 grocery stores Canada
1935 Piggly Wiggly (Canada) 179 stores Canada
1962 John Gardner Limited 11 stores United Kingdom
1963 Pratt Supermarkets 3 stores Melbourne, Australia
1963 Mutual Stores  ? stores Australia
1964 Big Bär Basar (Big Bear Bazaar) 2 stores West Germany
1980 Jack the Slasher 31 stores Queensland, Australia
1981 49% of Casa Ley  ? stores Mexico

Safeway in the Mid-20th Century

Safeway Stores 1955 Specimen Stock Certificate
Safeway Stores 1955 Specimen Stock certificate
Marina Safeway, Hamilton, MT
A "marina-style" Safeway in Hamilton, Montana, built in 1962. This still-operating store keeps the Marina design, but the red letters have been replaced with the current logo.
Safewaysupermarketolderdesign
A Safeway store design from the 1970s, in San Jose, California, August 2005.

In 1947, Safeway's sales reached over $1 billion for the first time. By 1951, sales were nearly $1.5 billion. The company started using the "S" logo, which you still see today, in 1962.

In 1959, Safeway opened its first store in the new state of Alaska. They were the first major food store to open there. They also opened their first "marina-style" store in San Francisco. Hundreds of stores with this unique roof design opened over the next ten years.

In 1961, Safeway sold its stores in New York. In 1963, they opened stores in Hawaii again, after leaving that market earlier.

Safeway in the 1980s: Big Changes and Sales

In 1986, Safeway was bought by a company called Kohlberg Kravis Roberts (KKR). To pay off a lot of debt, Safeway started selling many of its different parts.

Year Division sold # of stores Buyer
1982 Omaha/Sioux Falls 64 stores Multiple buyers including Hy-Vee & Fareway
1985 Southern Ontario 22 stores Oshawa Group
1985 West Germany 36 stores Meierei C Bolle
1987 Dallas 141 stores Sold in pieces to Kroger, Brookshire's, Tom Thumb Food & Pharmacy and others
1987 Salt Lake City 60 stores Farmer Jack
1987 El Paso/Albuquerque 59 stores Furr's Supermarkets (see Roy Furr)
1987 Oklahoma 106 stores MBO by management and Clayton, Dubilier & Rice forming Homeland (supermarket)
1987 Safeway UK 121 stores Argyll Foods
1987 Richmond 62 stores various buyers
1988 Kansas City 66 stores Morgan Lewis Githens & Ahn/W S Acquisition Corp.
1988 Little Rock 51 stores Acadia Partners
1988 Houston 99 stores MBO with Duncan Cook and Co. and the Sterling Group
1988 Southern California 172 stores Vons

Safeway sold its stores in Southern California, including those in Los Angeles and San Diego, to the Vons Companies in 1988. Safeway also reduced its operations in other California cities. Many stores in the Eastern U.S. were also closed or sold.

After these sales, Safeway's presence was mainly in several western states and Northern California, plus the Washington, D.C. area. Nearly half of the 2,200 stores in the chain were sold.

Safeway's Growth in the 1990s and 2000s

Safeway in 1663 Branham Lane, San Jose, CA 95118
Safeway • 1663 Branham Lane, San Jose, CA 95118

Safeway became a public company again in 1990. The late 1990s and early 2000s saw Safeway grow quickly into new areas. In 1997, Safeway bought the rest of the Vons Companies, getting its Southern California stores back. In 1998, they bought Dominick's Finer Foods in Chicago.

In 1999, Safeway bought Carrs-Safeway in Alaska and Randall's Food Markets in Houston, Texas. Randalls also had stores in the Dallas-Fort Worth area under the name Tom Thumb. The purchase of Randalls also meant Safeway started having gas stations at its stores.

In 2000, Safeway began offering grocery delivery. In 2001, they bought the Genuardi's chain, which had stores in Pennsylvania, New Jersey, and Delaware.

The "Lifestyle" Store Makeover

SafewayLifestyleProduce
Safeway "Lifestyle" look produce department
Safeway before opening
Safeway "Lifestyle" look front end checkouts

In 2005, Safeway started a big project to update its stores and brand. This project was called "Ingredients for life." It included a new logo, a new slogan, and a new look for the stores. Many stores were changed to the "Lifestyle" format.

These new "Lifestyle" stores had a fresh, inviting look with warm lighting. They also changed the store layout, gave employees new uniforms, and added sushi and olive bars. Many stores also added Starbucks coffee shops inside. This new design helped Safeway's sales grow.

Safeway Joins Albertsons

Safeway mountain view
The largest Safeway built from the ground up in the United States is part of a mixed-use development in Mountain View, California.

In 2013, Safeway announced it would sell its operations in Canada to Sobeys. This sale was completed five months later.

In October 2013, Safeway said it would close and sell its remaining Dominick's stores in the Chicago area.

On March 6, 2014, Albertsons, a longtime competitor, announced it would buy Safeway for $9.4 billion. This big deal was completed on January 30, 2015. After the merger, Safeway's food products were sold in all Albertsons-Safeway stores.

Safeway as a Supermarket Brand Today

Lifestyle2 0999
View of the "Lifestyle 2.0" theme as seen from the produce department of the Foster City location. Safeway began rolling out this theme in 2018.

After the merger with Albertsons, some stores were sold to other companies to meet anti-monopoly rules. Safeway and its other brands, like Randalls, Tom Thumb, Vons, and Pavilions, became part of Albertsons' operations.

In 2016, Safeway Inc. agreed to buy Andronico's stores, which were mainly in the San Francisco Bay Area. Some of these stores kept the Andronico's name, while others became Safeway Community Markets.

Front lobby/register area in an updated store

Starting in 2018, Safeway and Albertsons began updating stores with a new look called "Lifestyle 2.0." This new theme uses brighter colors and LED lighting to make the stores feel more modern.

In August 2021, Safeway launched FreshPass, a service that offers free unlimited delivery and special discounts for members. They also updated their mobile app to make shopping easier.

In October 2022, Albertsons and Kroger, another large grocery chain, announced they planned to merge. This merger is still being reviewed, and some states have challenged it in court.

Safeway store sign in Lakeview, Oregon.
Safeway store sign in Lakeview, Oregon

Safeway's Own Brands

In 2006, Safeway introduced a line of organic products called "O Organics." This brand has been very successful, with sales over $1 billion in 2017. In 2011, they launched "Open Nature," which also did well and now includes products from other previous Safeway brands.

After Albertsons bought Safeway, the combined company started using Safeway's own brand program. They changed the name from "Safeway Select" to "Signature Select" and updated the packaging for all their products.

Grocery Delivery and Pickup Services

Mangrove safeway
An early 21st-century Safeway store in Chico, California
Safewaydeliverytruck
A Safeway.com delivery truck, used for deliveries to people who buy their groceries online

Safeway has offered online grocery delivery since 2000 in some areas. This service has grown to deliver in many states. Safeway has also quickly added "DriveUp & Go," which lets you pick up your groceries at the store without going inside. They also offer on-demand deliveries through services like Instacart and DoorDash.

Past Store Ideas and Concepts

Over the years, Safeway has tried out different types of stores and ideas.

In 1963, Safeway created the Super S format. These stores combined a general merchandise store, a drug store, and a Safeway supermarket all in one building. They shared an entrance but operated as separate businesses.

In 1964, Safeway opened a special two-level International Store in Washington, D.C.. It had a regular Safeway downstairs and a gourmet food store upstairs, selling unique items like wild boar steaks and reindeer steaks.

The company also tried out discount grocery stores called Food Barn and discount liquor stores called Liquor Barn in the 1970s. They also experimented with smaller stores for city dwellers and gourmet food concepts.

Safeway also acquired Pak 'n Save Foods, which were warehouse-style stores that sold items in bulk. Today, these stores are very similar to regular Safeway supermarkets.

Safeway Logos Through the Years

Safeway's Animal Welfare Efforts

Safeway cares about animal welfare. In 2012, after an investigation, Safeway announced that its pork suppliers would need to stop using certain types of animal housing.

Safeway has also been recognized for its efforts in sustainable seafood. In 2013, a report ranked Safeway as one of the best supermarket chains for its seafood policies. They worked to make sure their canned tuna was caught in a way that protects the oceans.

In 2016, Safeway's parent company, Albertsons, joined many other companies in promising to use only "cage-free" eggs by 2025. This means the chickens that lay the eggs will not be kept in small cages.

Images for kids

See also

Kids robot.svg In Spanish: Safeway para niños

  • List of supermarket chains in the United States
  • Safeway (Australia)—Sold to Woolworths Limited Australia in 1985. All locations renamed to Woolworths Supermarkets from 2008 to 2017.
  • Safeway (Canada)—Sold to Sobeys in 2013. Continues to use the Safeway banner.
  • Safeway (UK)—Sold to Argyll Foods in 1987. Continued to use the Safeway name until 2005, after they were acquired by Morrisons in 2004.
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