SAFEWAY GEARS TO JOIN GAS STATION ROLLOUT DRIVE

PLEASANTON, Calif. -- Safeway here will reportedly jump into the fray of food retailers who are rolling out gas stations in the Eugene, Ore., market.

5 from downtown Eugene, according to a local media report. A Safeway spokesperson could not be reached for comment.

Also reportedly planning to add gas stations in the Eugene area are Albertson's, Boise, Idaho, and Costco Wholesale Club, Issaquah, Wash.

The Cottage Grove addition, and another fuel center planned for Roseburg, could be among Safeway's first in Oregon, a company spokeswoman told a local newspaper. "We want to increase the convenience factor for out customers," she said.

Safeway owns Randalls Food Markets, based in Houston, which operates 18 gas outlets. The retailer's only other gas outlet, according to the spokeswoman, is in Arizona.

By ramping up convenience and offering more one-stop shopping, Safeway would be going up against an Albertson's strategy to build a total of 600 gas station around the country over the next five years.

Additionally, Wal-Mart has said it plans to build 160 gas outlets this year. Costco plans to build 100 by next year.

Tops Markets, Giant Food Stores (both Ahold companies), Kroger and Fleming Companies also offer gas.

Winn-Dixie and Publix have respectively opened and announced plans to open gas stations.