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Grocery store stocks suffer after Safeway's Q1 report indicates a weakening sales and volume...

Grocery store stocks suffer after Safeway's Q1 report indicates a weakening sales and volume trend into the end of the quarter. The lackluster quarter adds weight to the opinion that the dollar store group (DG, DLTR, FDO) and Wal-Mart are taking more grocery market share. Decliners: SWY -16.8%, WFM -1.0%, TFM -1%, SVY -2.5%, NGVC -2.0%, KR -2.0%, WMK -1.3%, HTSI -1.4%, FWM -1.3%.
Comments (7)
  • Ceres
    , contributor
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    This is a logical conclusion, and depressing. DG is nominally a grocery store. Many DB and FDO don't even carry non-refrigerated foods or vegetables, meat. Walmart is marginally a grocery store, but not the greatest choice.

     

    Safeway and Kroeger's/Fry's are grocery stores, real ones. Yet SWY is down very sharply and KR isn't doing so great either. Not the greatest sign for the health and wealth of our economy, when food purchase options slide to the down, down side.
    25 Apr 2013, 01:05 PM Reply Like
  • hummerh25
    , contributor
    Comments (89) | Send Message
     
    Safeway might go the way of Penny's, Best Buy and Sears.
    25 Apr 2013, 01:09 PM Reply Like
  • kerps
    , contributor
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    RNDY is benefiting.
    25 Apr 2013, 01:12 PM Reply Like
  • Rhinoish
    , contributor
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    Safeway spent a lot to win back consumers who had gone to competitors, and it didn't work so well. I don't think people stopped buying groceries, so I see Safeway's weakness here as a gain for the other grocers.
    25 Apr 2013, 01:44 PM Reply Like
  • Ceres
    , contributor
    Comments (74) | Send Message
     
    You're correct about Safeway spending so much to woo back long time customers who left. I remember that. Locally, they chose to do that with all sorts of glutenous-free products, and dried grains etc. stored and then weighed out from big plastic silo's. Got rid of whole smoked whitefishes and frozen spring rolls, pizzas.

     

    Rhinoish, I hope you're right. I truly do.
    * Cute name, by the way. Friendly, too!
    7 May 2013, 09:53 AM Reply Like
  • stony3
    , contributor
    Comments (31) | Send Message
     
    West-Coast-wise there is a clear visible indication that some grocers are taking a wee clue from Whole Foods Markets and our farmer's markets. I live closer to a Raley's and they are clearly adopting a wider selection that includes attention to plant based whole foods and vegan fare. Safeway, which is also nearby, not so much. We also have Trader Joe's for a variety in choice of nutrients and Lucky's seems to be getting a little more into it like Raley's . Price may have most to do with shopper preferences, but living longer, which is becoming more popular, also has an impact on choice.
    25 Apr 2013, 02:09 PM Reply Like
  • Govteduc
    , contributor
    Comments (5) | Send Message
     
    I frequent a Safeway near my house and have noticed that they are having to mark down expensive cuts of meats by 50% just to get them sold. Not a good sign for the state of the economy. They also have grocery baskets full of clearance merchandise positioned throughout the store. I figure they are going to have to reduce inventory to avoid more of this. I have gotten some great cuts of meat, though! This store, I've been told is one of the busiest in the state of AZ, located on the east side of Flagstaff and the first grocery store for those coming off the Navajo Nation. We do, however have a super Walmart not much further away.
    25 Apr 2013, 03:10 PM Reply Like
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