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Safeway mulls potential sale of company
February 19th, 2014
PLEASANTON, Calif. – Safeway Inc. has confirmed that it's in talks concerning a possible sale of the company.
The food and drug chain said Wednesday that it hasn't agreed on a deal and that there is no certainty that a deal will be reached. The company declined further comment.
The announcement came as Safeway reported its results for the fourth quarter of fiscal 2013.
"We are pleased with the progress we made in 2013," Safeway president and chief executive officer Robert Edwards said in a statement. "Strategies to grow sales and improve operating profit dollars have begun to produce results. In 2013, we generated our best volume growth since 2006, and we had our best identical-store sales growth in the last five years. At the same time, we continue to pursue strategies to enhance momentum and increase shareholder value. We look forward to continuing progress in 2014."
In the fiscal 2013 fourth quarter, net earnings from continuing operations were $100 million, down from $170.7 million for the fourth quarter of 2012.
Sales and other revenue was $11.3 billion in the fourth quarter of 2013, compared with $11.2 billion in the fourth quarter of 2012. An identical-store sales increase (excluding fuel) of 1.6% was largely offset by a decline in fuel sales.
Gross profit increased 20 basis points to 26.52% of sales in the fourth quarter of 2013, compared with 26.32% of sales in the fourth quarter of 2012.
One of North America's largest food and drug retailers, Safeway operates 1,335 supermarkets, with roughly 1,200 pharmacies, in the United States.