A Citi analyst downgraded Safeway to "sell," writing that a price war between major grocery retailers will push down revenues.
Safeway recalled three peanut butter products as a precautionary measure against possible salmonella infection, sending shares slightly lower.
Safeway shares rose after management outlined a plan at the annual shareholder meeting of aggressive cost cuts and lower prices for fiscal 2009. After the conference, the UBS analyst covering the company upgraded his recommendation to Buy, sending prices upwards.
The company's sales during Q3 2008 increased 3.9% compared to Q3 2007, and its net income grew 2.6% to $199.7 million. The company attributes this growth to its 2.9% increase in comparable store sales during the quarter.
Safeway reports Q3 earnings. Net income rises $194.6 million from $173.5 million a year earlier, a 12% increase.
04/05/2007 - 04/05/2007: The two unions that represent grocery workers in Southern California, United Food and Commercial Workers, walked out of contract talks after three grocery chains, including Safeway, authorized a lockout if the unions caused a strike.
Safeway announces that their Blackhawk Network will begin selling gift cards in the United Kingdom.
