Safeway 2001 Annual Report Download - page 5

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“Almost 75% of Our Stores
Have Been Built or Remodeled in the Past Five Years
STORE MODERNIZATION
Capital spending increased to $2.0 billion in 2001. During the
year we opened 95 new stores, including 11 former ABCO
units in Arizona. We also expanded or remodeled 255 existing
stores and closed 49 older ones. Total retail square footage
increased 4.6%, excluding the Genuardi’s acquisition. In 2002
we plan to spend more than $2.1 billion and open 80 to 85
new stores while completing approximately 250 remodels.
Almost 75% of our stores have been built or remod-
eled in the past five years, up from approximately 50%
at the beginning of 1997. During that time we have
invested almost $7.3 billion (exclusive of acquisitions) to
keep our store system, support facilities and technology
up to date.
COMMUNITY INVOLVEMENT
In 2001 we made cash and in-kind donations of more than
$100 million to non-profit organizations throughout the
communities we serve. The primary recipients of our
donations are food banks, schools, health and human ser-
vice programs, and local charitable, civic and cultural orga-
nizations. During 2001 we also raised more than $4
million for victims of the September 11th tragedies. In
addition, we established The Safeway Foundation to facil-
itate our giving programs in the future.
Many of our employees give generously of their time
and talents to community organizations and causes. We
encourage their efforts and periodically augment them with
financial contributions from the company.
OUTLOOK
With consumer confidence gradually rebounding, we
believe the outlook for economic recovery is more promis-
ing than it had been at year-end 2001. Many indicators
point to modest growth for the remainder of 2002, fol-
lowed by a gradual acceleration of business investment and
consumer spending next year.
Regardless of how long the slowdown may last, we’re con-
vinced we have an unparalleled ability to reduce costs that
enables us to weather the current storm. When the recovery
shifts into a higher gear, we believe our lower cost structure
will keep us “ahead of the curve,” and in a better position to
benefit from resurgent consumer sentiment and spending.
Longer term, we are encouraged by the high productiv-
ity of our capital spending program and by the bright
promise of several initiatives we have been developing to
reduce costs further and drive sales. As we implement these
initiatives and the business climate gradually improves, we
expect to enjoy continued success in 2002 and beyond.
In closing, I’d like to thank all 193,000 members of the
Safeway team for their tireless efforts in executing our
growth strategy. Our employees are the primary source of
our past achievements and the key to our future success.
Steven A. Burd
Chairman, President and Chief Executive Officer
March 8, 2002
.”