Will Moving Out Of Chicago Help Safeway Inc (NYSE:SWY)
In a major statement, Safeway Inc (NYSE:SWY) said that by the start of 2014, it will leave the Chicago area. The company posted a much lower profit in the Q3 and is making every effort to focus and channelize its operations and cash reserves. The Chicago market is a very competitive one for food stores. The newer entrants in the market like Mariano’s which is Roundy Inc’s chain (and has piano players in stores) have gained headway with shoppers who want a high-end experience.
Aldi Inc is another company that has been gaining ground by adding more stores. This helps in drawing the more cash-conscious customers. Target Corp and WalMart stores and numerous other retailers have been focusing largely on food sales. In the Chicago area, the Dominick’s chain has been pulling down Safeway Inc (NYSE:SWY)’s fiscal results. This is the company’s lowest-performing division and has been draining its resources said Robert Edwards, Safeway Inc (NYSE:SWY)’s Chief executive Officer. The company will have to do something differently to come back to the fore of the race.
In Friday’s trading, Safeway Inc (NYSE:SWY) rose by 6.91%. The opening price of the shares was $33.27, which climbed to an intraday high of $33.91 and dipped to a close of $33.75. Approximately 15.35 million shares were traded on Friday while an average volume of 6.69 million shares were traded over a 30 day period. The 52-week low of Safeway Inc (NYSE:SWY) shares is $15.38 and its 52-week high is $6.69. Safeway Inc (NYSE:SWY) has a market capitalization of $8.19 billion.
About the company
Safeway Inc (NYSE:SWY) is a food & drug retailer that operates in North America. As of 29 December 2012, Safeway Inc (NYSE:SWY) had 1,641 stores. Safeway Inc (NYSE:SWY)’s U.S retail operations are situated primarily in Oregon, California, Alaska, Hawaii, Washington, Colorado, Texas, Arizona, the Chicago metropolitan-area as well as the Mid-Atlantic area.