Safeway begins exit of Chicago market
PLEASANTON, Calif. — Safeway on Thursday announced, as part of its plan to exit the Chicago market, it has sold four of its Dominick's stores in the greater Chicago area to New Albertsons, which operates Jewel-Osco grocery stores.
Safeway announced today that it intends to exit the Chicago market altogether, where it operates 72 Dominick's stores, by early 2014. "We expect to use the cash tax benefit and any other cash proceeds from the disposal of Dominick's properties to buy back stock and to invest in growth opportunities," the company stated.
During a short transition period, the stores will continue to operate under the Dominick's banner until Jewel-Osco can complete their conversion to Jewel-Osco stores. Dominick's will be working with Jewel-Osco and the unions to ease the transition for store employees.
Safeway has decided to exit the Chicago market and focus its efforts in other operating areas where its business is stronger, the grocer stated.