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SWY » Topics » Lifestyle Stores

This excerpt taken from the SWY 8-K filed Feb 23, 2006.

Lifestyle Stores

Lifestyle stores have contributed significantly to sales growth throughout 2005. As expected, the cost of promoting Lifestyle openings reduced gross margin and increased operating and administrative expense as a percentage of sales. The company expects that

as the Lifestyle stores opened in 2005 mature in 2006, their margins will improve and they will contribute at a higher level to Safeway’s operating profit.

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