GLENDALE, AZ
A Safeway store in Glendale, Arizona will be closing later this year “to strengthen operational efficiencies,” according to company spokeswoman Nancy Keane. With the Albertsons merger still slated to close within the fourth quarter of 2014, is this a precursor to further store closures?
A closing date has not been determined for the store, which opened in 1981. Safeway is working to transfer the Glendale store employees to other metro Phoenix locations. Keane states that no other Arizona Safeway stores are scheduled to close at this time.
Interestingly however, although Albertsons said it would not close any of its supermarkets as part of the deal, it did close a Phoenix store in February that was located across the street from Safeway, according to AZCentral. Robert Edwards, Safeway CEO, previously said that there would be some stores which would be operating in direct competition, indicating a potential need for store closures. Both Safeway and Albertsons insist that they intend on keeping the existing retail footprint of both companies.
If further store closures were to occur, California might be the most likely state. In California, Safeway and Albertsons have a combined 678 stores – about three times the number in its second-largest market, according to San Jose Mercury News. Other areas where these two chains overlap and compete heavily with each other include Washington, Oregon, Colorado, Arizona, and Texas. It's quite possible that Cerberus may close the less profitable stores in these states to recuperate money spent on the $9 billion acquisition.
Safeway currently has 114 Arizona stores, including 59 in the Valley; meanwhile, Albertsons has 29 Valley stores.
Stay tuned to DeliMarket TV as we keep an eye out for any further closures from either Safeway or Albertsons.
