Safeway faces stiff competition as a retail grocer, and with Wal-Mart's market share increasing, the competition will only grow in the upcoming years. Although Safeway's "lifestyle" campaign has differentiated the company from other grocery retailers, it has also branded the company as a more expensive choice for shoppers. As consumers are looking to trade down during tough economic times, Safeway is not well positioned to compete with Wal-Mart and other lower cost rivals.
The Key ranking for Safeway was increased from 4 Key Low to 3 Key Moderate on Thursday, April 2 2009. Key rankings look at numerous factors related to company stocks. It is intended as a guide for investors interested in investing in this underlying stock.