Gallery: Roundtable Analysts Reflect on Safeway

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Genuardi's BLUNDER (not verified)
on Sep 17, 2013

An example of a Safeway blunder was the acquisition of suburban Philadelphia-based Genuardi Family Markets earlier last decade. Very-well respected Genuardi's was known for quality and competitive pricing in mostly middle and upper-middle class communities. Within a year Safeway cut quality on perishables (ex: inferior tough grade of beef) and increased many regular retails higher than many competitors. If Safeway had stayed the Genuardi family "course", it today would be in an excellent position to expand in the Delaware Valley by acquiring A&P banners and Acme, which will be history fairly soon.

on Sep 19, 2013

All Genuardi employees that stayed after the acquisition and until the demise of Genuardi's tried to keep customers happy and inform Safeway corporate that they were undermining the business by the business tactics that they used to run the stores. It was all about shareholders. They first started with stocking inferior quality product, deleting Genuardi name brand products and raising prices through the roof. Next followed labor hours being cut on a consistent basis. All of this decreased business. We lost more labor hours and lost more customer contact. They spent more money on
ridiculous programs, signage etc. trying to regain market share. The solutions was really simple. Run it like Genuardi's had. Restore quality, competitive pricing and labor and everything else would fall into place. No, they brought in more Safeway private label brands and tried shoving them down the publics throat by replacing way to many name brand products and cutting down on offering the public the opportunity to shop a variety. If they thought that the employees "couldn't let go of the Genuardi culture", they should have REALLY listened to what the customers wanted. They wanted Genuardi's, nothing else would do. We had been told at the beginning when first purchased that they were so impressed with the way Genuardi's did business and its customer service that they were going to model Safeway stores after Genuardi's. All lies. What a horrible shame to watch a once great company to work for, Genuardi's, becoming a sinking ship with us looking to stay afloat.

TC (not verified)
on Oct 28, 2013

New to this industry I must say it has been a rough road working for Dominicks. It was a childhood dream to finaly get employed by them only after getting up to speed with its corporate ways to get a devastating blow from a news broadcast 8wks later its shutting down the Chi DC. Its not been a pleasant experience at al! Safeway does not appear to care or listen to its people on the front line or in the trenches. Maybe their bank accounts would be larger if they did....but it doesn't matter as they only care about portfolios and stocks for their next sale! Shame on you Safeway......Shame on you!

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