Dominick’s: Let the Takeover Speculation Begin
By George Anderson
Safeway’s labor problems in Chicago have led to widespread speculation about the eventual fate of the Dominick’s chain.
A sale to Supervalu, Kroger, Ito-Yokado, Schnuck Markets, Meijer Stores as well as a possible Dominick’s management buyout have all made the rounds of the rumor mill.
One of the rumored suitors would appear to have already taken themselves off the board. Craig Schnuck, chairman and chief executive, Schnuck Markets told the Chicago Tribune, “We would have zero interest if the labor wasn’t at parity.” Safeway contends that it pays members of the United Food and Commercial Workers $2 to $6 more than unionized and non-union competitors.
Moderator’s Comment: What do you believe is the best
and worst case scenario for Dominick’s?
Best case – Safeway sells. Worst case – Safeway doesn’t.
[George
Anderson – Moderator]