Operations and Project Management Case Study

Safeway Inc: Is it on a Safer Way?

OR

Abstract:
Safeway Inc, one of the largest grocery chains with over 1,800 stores across the US and Canada ran into trouble in 2000. Safeway was facing internal labor problems and external threats from peers and mega retailer, Wal-Mart. To cope up with the declining profits and to lure back the customers, Safeway had come up with a new ‘Lifestyle’ store format and had also introduced a new slogan “Ingredients for Life,” to reposition itself as a more upscale market with product selection and services that addressed the lifestyle demands of modern consumers. This case discusses in detail the various phases which Safeway passed through, the obstacles that came in its way, and the recovering strategy of the company.

Pedagogical Objectives:

• Study the grocery retail industry and its various store formats
• How strong is Safeway in the competitive world?
• With new Lifestyle format, can Safeway lure back its customers?
• The worth of $100 million spent in the re-launch of Safeway as ‘Ingredients for Life”.

Keywords : Grocery Retail Industry; Operating Strategies Case Study; Wal-Mart; Albertsons; Retail Operations; Lifestyle; Ingredients for Life; Perishables; Proprietary Brands; Brand Repositioning; Service Management; Store Size; Grocery Industry Strike; Safeway Select; Supermarkets