Making Money, Opening New Markets

Jul 29, 2003
George Anderson

By George Anderson

Critics contend Safeway has turned-off once loyal shoppers and lost business
with its one-size-fits-all approach to running its acquisitions such as Randalls,
Dominick’s Finer Foods and Genuardi’s.

One area, where Steve Burd and company obviously didn’t feel as though they
knew better was in the company’s venture.

Two years ago, Safeway partnered with Tesco to run its e-tail business. Yesterday opened for business in Seattle, its eighth market to date, and it
is profitable. As Safeway spokesperson, Mary Marymee told the East Bay Business
, “the grocer wouldn’t be expanding the venture if it wasn’t making
a profit”.

Moderator’s Comment: What are your thoughts on
and the state of grocery e-tailing in the US today?

What does Tesco/Safeway know that everyone else doesn’t?
Gary Sargeant, on loan from Tesco for the past two years to help
get going said, “With our in-store model, we can be profitable with as few as
70 to 100 daily orders (per store). We have costed this out very precisely.”
Anderson – Moderator

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