Safeway 2013 Annual Report Download - page 7

Table of Contents
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reloadable ("GPR") cards and Blackhawk’s reload network. In the fourth quarter of 2013, Blackhawk acquired InteliSpend Prepaid Solutions
TM, a leader in the corporate incentives and consumer promotions marketplace, and Retailo AG, a leading third-party gift card distribution
network in Germany, Austria and Switzerland. See Note C to the consolidated financial statements set forth in Part II, Item 8 of this report for
additional information.
Stores Safeway’s average store size is approximately 47,500 square feet. The Company determines the size of a new store based on a
number of considerations, including the needs of the community the store serves, the location and site plan and the estimated return on
capital invested. Safeway’s “Lifestyle” store showcases the Company’s commitment to quality with an expanded perishables offering. It
features an earth-toned décor package that is warm and inviting with special lighting to highlight products and departments, custom flooring
and unique display features. The Company believes this warm ambiance significantly enhances the shopping experience.
Safeway’s stores provide a full array of grocery items with a portion tailored to local preferences. Most stores offer a wide selection of food and
general merchandise and feature a variety of specialty departments such as bakery, delicatessen, floral, seafood and pharmacy. In addition,
the majority of stores offer Starbucks coffee shops, and some offer adjacent fuel centers.
Safeway continues to operate a number of smaller stores that also offer an extensive selection of food and general merchandise and that
generally include one or more specialty departments. These stores remain an important part of the Company’s store network in smaller
communities and certain other locations where larger stores may not be feasible because of space limitations and/or community needs or
restrictions.
The following table summarizes Safeway’s stores by size at year-end 2013:
Square footage
Number
of stores
Percent
of total
Less than 30,000
145
10.9%
30,000 to 50,000
541
40.5
More than 50,000
649
48.6
Total stores
1,335
100.0%
Store Ownership At year-end 2013, Safeway owned 46% of its stores and leased its remaining stores.
Private Label/Merchandise Safeway's operating strategy is to provide value to its customers by maintaining high store standards and a
wide selection of high-quality products at competitive prices. To provide one-stop shopping for today's busy shoppers, the Company
emphasizes high-quality produce and meat and offers many unique items through its various specialty departments.
Safeway is focused on differentiating its offering with high-quality perishables. The Company believes it has developed a reputation for
having the best produce in the market, through high-quality specifications and precise handling procedures, and the most tender and flavorful
meat and poultry, through both the Company's Rancher's Reserve Tender Beef offering and Open Nature all natural beef, chicken and
sausages. Safeway's deli/food service department has developed a variety of solutions for today's busy shoppers, including Signature Café
sandwiches, soups and salads as well as Primo Taglio deli meats and cheeses. Many Safeway bakeries offer freshly made bread, and the
floral department is recognized by its signature gazebo.
Safeway has continued to develop its portfolio of Consumer Brands private label products. The Company has focused its brands into three
areas: Health & Wellness, Premium and Core. The prices in each category are generally lower than those of comparable products from
national brands.
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