Safeway Continues Conversions

PLEASANTON, CA-Safeway Inc. continued its march toward converting all of its 1,770 stores to its new “Lifestyle” format and opened five new locations in the second quarter ended June 17, company officials reported Thursday during the supermarket chain’s quarterly conference call with financial analysts. The chain reported what one executive called “a very good quarter” financially, with increases in earnings, earnings per share, sales and comparable store sales.

Steve Burd, Safeway’s chairman, president and CEO pointed out that the company opened five new Lifestyle stores and completed 80 Lifestyle remodels in the first half of 2006. For the year, the company expects to spend approximately $1.6 billion in capital expenditures, open approximately 20 new Lifestyle stores, and complete approximately 280 Lifestyle remodels.

Through the end of the second quarter, 31% of the stores had been converted to or opened in the Lifestyle format, Burd noted. The company has invested $741.3 million in capital expenditures in the first 24 weeks of 2006 in its efforts to remodel and to open the new Lifestyle locations.