Safeway Analysis - 1625 Words

Objective: An analysis of the factors driving performance of Safeway (top performing firm) A. Factors that Drive Profitability (as defined in the Interim Report) and an analysis of how they apply to Safeway and their industry leadership: 1. Location, specifically proximity to strategic markets. Being located close to or within key markets lets firms capitalize on their exposure, allowing them to maximize their control of a region and to enhance their margins. Grocery competition exists locally, since there is only so far that consumers are willing to travel to fulfill their needs, so if a firm can dominate a market with minimal competing operators it will enhance its profitability. †¢ Safeway operates 1,743 stores (as of†¦show more content†¦These four retailers average private-label dollar share of 22%, well above the industry average of 16%. They have also seen higher levels of overall sales growth versus non-leaders – 5.3% versus 3.4% over the past 3 years. (Future of Food Retailing 2008, 136) †¢ Safeway offers more than 2,500 products under Safeway, Lucerne dairy products, and Mrs. Wright’s baked good labels. It also offers 1,300 premium store-brand products under the Safeway Select brand and sub-brands. 5. Offering fresh and prepared food. Prepared food and fresh offerings have become increasingly demanded within the marketplace, and providing them can be highly profitable for firms, considering that sales for these products are growing at three times that of center store categories. Furthermore, the perishables department and prepared foods offer significantly higher profit margins than standard center-aisle offerings and also lead to improved consumer perception of the store in general. †¢ Safeway puts a lot of effort into marketing its upscale Lifestyle stores, which comprise about 60% of its total stores as of January 2008 (Future of Food Retailing, 29). †¢ The company’s 5.2% salesShow MoreRelatedSafeway Financial Analysis1230 Words   |  5 Pages Financial Analysis of Safeway ABSTRACT In today’s economy consumers are concerned about making every dollar count, especially when it comes to purchasing groceries for their families. Although there are many grocery stores available to consumers, each person (or family) tend to gravitate to those that offer savings and products that are reasonably priced. This paper will discuss the financial health of a popular grocery store chain – Safeway. Financial ratios will be used to determine if SafewayRead MoreAnalysis Of Safeway Inc. K And Financial Ratios2723 Words   |  11 PagesFINANCIAL ACCOUNTING - LENDECKY Analysis of Safeway Inc. 10-K and Financial Ratios with comparison to Whole Foods Inc. Jonathan Roberts 8/12/2014 Safeway 2013 10-K: http://goo.gl/5k6mBo Safeway 2012 10-K: http://goo.gl/cuhIQt Safeway 2011 10-K: http://goo.gl/c0UGei Whole Foods 2013 10-K: http://goo.gl/QVdb9d Whole Foods 2012 10-K: http://goo.gl/0eZLST Whole Foods 2011 10-K: http://goo.gl/bTTo4n Section I – Summary of Safeway and Grocery Industry at large Safeway Inc. produces and sells groceryRead MoreWoolworths5168 Words   |  21 Pages1. Executive Summary The purpose of this report is to provide a strategic analysis of Woolworths in its Australian retailing and grocery industry. There are some external factors can be affected to Woolworths strategy. 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