The company plans to open 10 new units and complete approximately 100 remodels, reducing capital expenditures from $1.2 billion to approximately $1 billion.
"We are seeing the smallest competitive new stores program against us I have seen in 17 years," said Steve Burd, chairman, president and CEO. "It's a good thing for us to back off of our capital a bit."
For the quarter, total sales were $9.2 billion, down 7.6% from the first quarter of 2008, due in large part to a shift in holiday sales, lower fuel prices and a decline in the Canadian exchange rate. Identical-store sales, excluding fuel, declined 0.7%. Net income was $144.2 million, compared to net income of $193.4 million in the prior-year quarter.
Safeway operates 1,737 stores in the United States and Canada.
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