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PORTLAND — Grocery-store operator Safeway Inc. reports its fourth-quarter results on Thursday. The following is a summary of key developments related to the period.
OVERVIEW: Safeway's traffic and sales have slowed as consumers cut their spending and as competition among grocery sellers has heated.
Grocery stores and supermarkets have been one of the stronger parts of the retail world during the recession. Consumers have to eat, and they're doing it at home more often now. But they also are much more price-sensitive and stretching their food dollar whenever possible.
Pleasanton, Calif.-based Safeway, one of the nation's largest grocery chains, boosted its profit in the fourth quarter thanks to aggressive internal cost reductions and a focus on improving its financial position. Safeway management said its sales of in-house brands are soaring, and prices from some of its manufacturers are moderating.
But the company's heaviest presence is in California, which has been hard hit by the recession, and that may continue to affect its earnings this quarter. Analysts also have said that, to remain competitive, the company must cut its retail prices until they are on par with Wal-Mart and other national grocers.
BY THE NUMBERS: Analysts polled by Thomson Reuters expect the company to earn 41 cents per share for the quarter on revenue of $9.9 billion.
STOCK PERFORMANCE: Safeway shares fell nearly 13 percent during the quarter and nearly 31 percent over the past 52 weeks.
