Safeway Stores Inc

Safeway Stores Inc. has decided to close and sell 24 Southern California supermarkets in a move that could put up to 800 people out of work, union officials said. Bonnie Lewis, a spokeswoman for the Oakland-based chain, confirmed Friday that the stores have been put up for sale and that Safeway hopes to close them before the end of March. Twelve other Safeway supermarkets that are already closed or vacant are also up for sale. The chain has about 200 stores in Southern California.

Who could object to rewarding people who quit smoking, lose weight or start to exercise? The American Cancer Society and the American Heart Assn., for starters. Some companies are charging lower insurance premiums to workers who meet benchmarks for healthy living. The Senate's healthcare overhaul legislation would expand the trend. But instead of cheering the proposal, some patient advocacy and health groups are worried that it could mean higher rates for less-fit Americans, possibly pricing them out of their employers' insurance plans.

Arthur L. Patch has been named vice president-merchandising support of Lucky Stores Inc., Dublin. Patch, 46, was formerly with Safeway Stores Inc., where he was manager-corporate grocery division.

Grocery store operator Safeway Inc. said weak consumer spending, the stronger dollar, lower fuel prices and the late Easter holiday caused its first-quarter profit to fall 25%. The Pleasanton, Calif., company also lowered its full-year outlook because of the weak environment but raised its dividend. Safeway's net income declined to $144.2 million, or 34 cents a share, from $193.4 million, or 44 cents, a year earlier. The results missed the company's estimate and the 40 cents a share that analysts polled by Thomson Reuters had predicted.

Safeway Stores Inc. recalled 1-ounce glass jars of its Crown Colony brand garlic powder and 3/4-ounce jars of Crown Colony onion powder Friday after glass fragments were reported discovered in several jars in Northern California. Chain officials said only a few jars of one lot of garlic powder were found to be contaminated, but all bottles of both powders were being withdrawn as a precautionary measure. Customers were asked to return any of each to any Safeway store for a refund.

Farmland Foods Inc. has assumed control of a Wichita, Kan., pork processing plant that was previously owned by Safeway Stores Inc. Farmland Foods purchased the plant as part of a continuing effort to concentrate its activities in "more value-added products than in production of raw pork," said Gary Evans, president of the Kansas City-based Farmland Foods.

Attempting to cater to a consumer preference for jumbo supermarkets, Safeway Stores Inc. said Wednesday that it is closing some of its smaller, less profitable stores in Orange and Los Angeles counties and building larger "super stores." On July 6, one store in Santa Ana and another in Bellflower were closed. This weekend, two other stores, in Huntington Beach and Cerritos, will be shut down. Another, unidentified Orange County store is expected to be closed later this year.

In the largest penalty of its kind, Safeway Stores Inc. announced Monday that it has agreed to pay the Commerce Department $995,000 to settle the department's charges that the company had illegally complied with the Arab boycott against Israel. The settlement stipulated that Safeway had not admitted to any violations of law.

Higher sales at its gas stations and upscale stores helped boost grocer Safeway Inc.'s profit nearly 3% in its third fiscal quarter. The nation's second-biggest grocery chain said Tuesday that its profit rose to $199.7 million, or 46 cents a share, for the three months ended Sept. 6, from $194.6 million, or 44 cents, a year earlier. The results sent Safeway shares up nearly 5% on Tuesday to close at $22.85, gaining $1.08 for the day.

Higher gasoline sales and a boost from its more upscale stores helped grocer Safeway Inc. post higher second-quarter earnings Thursday, but a downbeat outlook caused by reduced consumer spending sent its shares tumbling more than 10%. The nation's second-largest grocer, which owns Vons, said that cutting costs and revising its retail strategy helped it to report the higher earnings, which beat Wall Street expectations. Chief Executive Steve Burd said Safeway had a very strong quarter but acknowledged that the economy and its effect on shoppers' spending habits made for soft same-store sales.

Supermarket operator Safeway Inc. reported Thursday that its profit rose 11% in the first quarter amid slowing sales growth, results that were boosted by the Easter holiday, a weak dollar and higher gasoline sales. The company said it earned $193.4 million, or 44 cents a share, for the January-March period, up from $174.4 million, or 39 cents, a year earlier. Revenue rose 7% to $10 billion. Analysts surveyed by Thomson Financial expected a profit of 42 cents a share on revenue of $9.72 billion.

Shares of Safeway Inc. rose Tuesday after Chief Executive Steve Burd said he might sell or "monetize" part of its Blackhawk Network gift-card unit because it was undervalued. Burd also reiterated the company's 2008 forecast. Shares of Pleasanton, Calif.-based Safeway climbed $1.25, or 4.4%, to $29.70, the biggest gain since Jan. 16. The shares are down 13% this year.

Safeway Inc. said Thursday that fourth-quarter profit fell 2.2% after a year-earlier tax gain. The supermarket chain also said sales growth in the current quarter slowed, pushing its stock down the most in almost four years. Net income decreased to $301.1 million, or 68 cents a share, while revenue rose 6.8% to $13.4 billion, helped by store renovations, Safeway said. Profit matched the average analyst estimate. A year earlier, a tax gain boosted earnings by 8 cents a share.

Vons parent Safeway Inc. said profit might grow next year on new product lines and increased sales at its remodeled stores. Earnings will be $2.25 to $2.35 a share, the Pleasanton, Calif.-based supermarket company said. That compares with the $2.27 average estimate of analysts surveyed by Bloomberg. Identical-store sales, excluding gasoline, may grow as much as 3.2%, Safeway said. Identical-store sales are sales at stores open at least five quarters. Safeway shares rose $1.06, or 3.1%, to $35.

Who could object to rewarding people who quit smoking, lose weight or start to exercise? The American Cancer Society and the American Heart Assn., for starters. Some companies are charging lower insurance premiums to workers who meet benchmarks for healthy living. The Senate's healthcare overhaul legislation would expand the trend. But instead of cheering the proposal, some patient advocacy and health groups are worried that it could mean higher rates for less-fit Americans, possibly pricing them out of their employers' insurance plans.

The Commerce Department Friday charged Safeway Stores Inc. with more than 400 counts of complying with the Arab boycott against Israel, by far the biggest such case ever brought in the 10-year history of the U.S. anti-boycott law. William V. Skidmore, director of the Commerce Department's Office of Antiboycott Compliance, said that fines in the case could total $3.5 million if all charges are proved before an administrative judge and if maximum penalties are assessed.

The union representing 25,000 Safeway Inc. grocery workers in Northern California says a scheduled strike vote has been called off because a new contract agreement has been reached. The deal announced early Sunday by the United Food and Commercial Workers union covers employees at about 300 stores in the region's largest grocery store chain. Details of the four-year accord were not released. Safeway store employees were working under a contract extension that expired Saturday.