Safeway 2002 Annual Report Download - page 5

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SAFEWAY INC. 2002 ANNUAL REPORT 3
SHARE REPURCHASES During the year we repurchased 50.1
million shares of Safeway common stock for $1.5 billion.
Under the current program authorized by the board of direc-
tors, we have bought back $2.9 billion worth of our shares,
leaving $0.6 billion available for additional repurchases as of
year-end 2002.
STORE MODERNIZATION We continue to modernize our store
base to enhance our growth prospects. During 2002 we invest-
ed approximately $1.4 billion in cash capital expenditures. We
opened 71 new stores, expanded or
remodeled 191 existing stores and closed
32 older ones, resulting in a 4% net addi-
tion to total retail square footage in con-
tinuing operations. Given the continuing
soft economic conditions, we have scaled
back our capital spending plans for
2003. In the coming year we expect to
invest between $1.1 billion and $1.3 bil-
lion in cash capital expenditures and
open 50 to 55 new stores while complet-
ing between 100 and 125 remodels.
COMMUNITY INVOLVEMENT In 2002 we made cash and in-
kind donations to hundreds of non-profit organizations
throughout the communities we serve. Among these
donations was approximately $60 million worth of mer-
chandise to Second Harvest food banks. We also con-
tributed more than $25 million to local schools through
eScrip and other educational programs. In addition, we
conducted major fundraising campaigns to support breast
and prostate cancer research, treatment and education.
During 2002 we launched The Safeway Foundation,
through which we support charitable organizations that
improve the quality of life in the communities where our
employees work and live. The foundation was funded by an
initial grant from the company and is sustained by fundrais-
ing events and an annual employee giving campaign.
OUTLOOK Looking ahead, it is difficult to predict when the
long-awaited economic rebound will spark a resurgence in
consumer confidence and spending. We remain focused on
what we can control – providing our customers with the
pleasant, convenient shopping experience they expect and
deserve. As noted on the following pages, we believe Safeway
has distinct competitive advantages over other supermarket
operators and retailers in alternate
channels. These advantages include
convenient, attractive store facilities
with exciting new specialty depart-
ments; consistently superb quality, espe-
cially in the perishable departments;
friendly, helpful service delivered by
knowledgeable employees; and a broad
assortment of products and services at
competitive prices. We continue to work
hard to differentiate our stores from
those of our competitors.
In closing, I want to thank our
employees for their unwavering dedication and diligence dur-
ing a difficult year. They have bolstered my strongly held con-
viction that we have what it takes – the right facilities,
systems, programs, products and, most important of all, the
right people – to weather these tough times and achieve our
long-range objective of enhancing shareholder value.
Steven A. Burd
Chairman, President and Chief Executive Officer
March 21, 2003