Safeway 1997 Annual Report Download - page 12

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Operating and administrative expenses as a percentage of sales declined
35 basis points* in 1997, continuing a five-year trend. We believe Safeway
leads all major full-service food retailers in the magnitude of expense
reduction, measured as a percentage of sales, since 1992. A culture of
thrift permeates the organization. By running the business at its simple
best, we are able to serve our customers better at lower cost.
We streamlined the administrative support structure at Vons.
We continued to consolidate our private-label manufacturing operations,
closing two plants.
Major union contracts signed during 1997 will help achieve competitive
labor costs in several key markets.
Vons’ data processing operations, previously outsourced, were combined
with Safeway’s information technology group.
Controlling Expenses
9
* Pro forma
(defined on page 2)
Improvement in Annual Operating 
and Administrative Expense Margin
(IN BASIS POINTS)
27 68 56 48 35*
Our O&A expense 
margin has improved 
in each of the last 
five years.
93 94 95 96 97