Safeway shares dropped dramatically Thursday morning as the company reported $10 billion in sales for its first quarter 2013 ended March 23, which is essentially flat as compared with the first quarter of 2012.
Keeping stores open during Hurricane Sandy was one of the factors that contributed to an increase in total store sales and comps in the fourth quarter and fiscal year 2012 for Ahold USA, the supermarket operator's Dutch parent company said Thursday.
Safeway reported a sales increase of 1.3% to $44.2 billion in 2012 for its fiscal year ended Dec. 29, driven by increased fuel sales and a same-store sales increase of 0.5% (excluding fuel), the grocer reported.
Safeway's approach to multi-channel retailing — a shopping app fielding personalized, targeted promotions to members of its growing Just for U loyalty program — represents the foundation for future growth, executives noted during a conference call with analysts Thursday morning.
Safeway is looking to its recently launched Just for U loyalty program, which this month became available across all U.S. divisions, to help drive a positive sales story through the rest of the fiscal year.
Recent events, which have driven Wall Street analysts to speculate that Safeway is a buyout target, are not interrelated, Safeway chairman and CEO Steve Burd assured analysts Thursday morning during the grocer's first-quarter conference call.
Safeway announced that its stores raised $1 million for the Wounded Warrior Project, an organization that exists to honor and empower military men and women who incurred service-related injuries on or after Sept. 11, 2001.
CVS Caremark announced on Friday that former Walmart North executive Hank Mullany will succeed Larry Merlo as president of CVS/pharmacy. The move is part of the corporate succession plan announced last May in which Tom Ryan will retire as CEO prior to the next annual meeting and Merlo will step up as CEO.