Safeway Announces Sale of 16 Genuardi's Stores

Published on Thursday, 05 January 2012 09:27 Written by TradersHuddle Staff

PLEASANTON, Calif., Jan. 5, 2012 /PRNewswire/ -- Safeway Inc. (NYSE: SWY) announced today it has reached a definitive agreement to sell 16 of its Genuardi's stores in the greater Philadelphia area to Giant Food Stores, LLC, a division of Ahold USA. Safeway will continue to operate these stores until the transaction closes, and the company is working through an orderly transition for all of these stores.

The transaction is subject to customary closing conditions, including regulatory approval. The following is a list of Pennsylvania locations to be sold to Giant:

In addition, Safeway plans to close three Genuardi's stores and sell the remaining eight Genuardi's stores, which it will continue to operate while it is working with potential buyers. The three Pennsylvania stores to be closed are:

Exton

Norristown (1930 West Main St.)

Royersford

"We have made the decision to exit the greater Philadelphia market, including four stores in New Jersey, and focus our resources in those operating areas where we have a stronger presence," said Steve Neibergall, President of Safeway's Eastern Division. "We will be working with the purchasers to ease the transition for our store employees and making efforts to facilitate continued employment for as many of them as possible." 

About Safeway www.Safeway.com

Safeway Inc. is a Fortune 100 company and one of the largest food and drug retailers in North America, based on sales. The company operates 1,681 stores in the United States and western Canada and had annual sales of $41.1 billion in 2010. The company's common stock is traded on the New York Stock Exchange under the symbol SWY.

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SOURCE Safeway Inc.