Safeway 1997 Annual Report Download - page 10

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Vons Merger (top right) Vons, the second largest supermarket operator in southern
California based on sales, has a strong consumer franchise in one of the nation’s
largest, most affluent markets. The merger with Safeway has provided Vons with
access to increased capital for its store expansion program and with expertise in
key operational areas. At the same time, Vons has brought valuable insights to
Safeway. Integration of the two operations is ahead of schedule.
Combined Expertise (bottom right) By combining the best practices of both compa-
nies, Safeway and Vons expect to make continued progress in areas such as
cost containment, information technology and private label marketing. Several
promising developments have already evolved from the exchange of ideas
and expertise. The merger has also enhanced geographic diversity and should
result in significant economies of scale in purchasing, administrative support
and information systems.
Shared Values (below) Teamwork, a defining characteristic of our corporate culture,
has been clearly evident in the Vons merger. Perhaps more than any other factor,
our shared values and competitive spirit have enabled us to integrate the two
organizations with remarkable speed. A top priority going forward is to continue
nurturing these qualities in the combined company of 147,000 employees.
7
External
Growth
Vons
Merger