Safeway
Safeway
Main page
2136469

Safeway

logo
Community Hub0 subscribers
What are your thoughts?
Be the first to start a discussion here.
Be the first to start a discussion here.
Safeway

Safeway, Inc. is an American supermarket chain that provides grocery items, food and general merchandise and a variety of specialty departments such as bakery, delicatessen, floral and pharmacy, as well as Starbucks coffee shops and vehicle fuel centers. Safeway's primary base of operations is in the Western United States, with some stores located in the Mid-Atlantic region of the Eastern Seaboard.

It is a subsidiary of Albertsons after being acquired by private equity investors led by Cerberus Capital Management in January 2015. The subsidiary is headquartered in Pleasanton, California.

Marion Barton Skaggs, who already had experience in the grocery business, moved to Portland, Oregon in 1921, and established four grocery stores. This chain of stores grew quickly, and Skaggs enlisted the help of his five brothers to grow the network of stores. By 1926, he had opened 428 stores bearing the family name in 10 states. He then almost doubled the size of his business that year when he merged his company with 322 Sam Seelig Company stores and incorporated as "Safeway, Inc." because he thought a corporate chain that would outlive him should not carry his name.

Safeway was chosen as the name because the stores operated exclusively on a cash-and-carry basis; they did not offer credit to customers, as American grocers traditionally had done. It was the "safe way" to buy food because a family could not get into debt via its grocery bill (as many families did at the time, a contributing cause of the Great Depression in the United States). Thus, the original slogan was: "Drive the Safeway. Buy the Safeway".

The 1926 merger came about because of Charles E. Merrill, the founder of the Merrill Lynch brokerage firm, who saw an opportunity to consolidate the West Coast grocery industry. Towards this end, he purchased the 322-store Safeway chain of W.R.H. Weldon, who wished to exit retailing and concentrate on wholesale. Then, in June 1926, Merrill offered Skaggs either $7 million outright or $1.5 million plus 30,000 shares in the merged firm. Skaggs took the latter. On July 1, 1926, Safeway merged with the 673 stores from Skaggs United Stores of Idaho and Skaggs Cash Stores of California. On completion of the Skaggs/Safeway merger, M. B. Skaggs became the Chief Executive of the business. Two years later, Skaggs listed Safeway on the New York Stock Exchange. In the 1930s, Safeway introduced produce pricing by the pound, adding "sell by" dates on perishables, nutritional labeling, and some of the first parking lots.

The merger instantly created the largest chain of grocery stores west of the Mississippi. At the time of the merger, the company was headquartered in Reno, Nevada. In 1929, it was relocated to a former grocery warehouse in Oakland, California, where it had the exclusive zip code of 94660. Safeway headquarters remained there until they moved to their new offices across from Stoneridge Mall in Pleasanton, California, in 1996. In the 1930s, Charles E. Merrill temporarily left Merrill Lynch to help manage Safeway.

In the late 1930s, the New Negro Alliance boycotted the Sanitary Grocery Company (then a Safeway subsidiary) to pressure store owners to employ black people, especially in predominantly black neighborhoods. The Sanitary Grocery Company successfully sought an injunction against the New Negro Alliance, which was upheld by the Washington, D.C., Court of Appeals. This led to the 1938 landmark U.S. Supreme Court decision of New Negro Alliance v. Sanitary Grocery Co., which defended the right to peaceful protest in the resolution of labor disputes.

In 1969, the Black Panther Party and the United Farm Workers launched simultaneous boycotts of Safeway grocery stores, which were the largest grocery store chain in the U.S. West at that time. The Panthers boycotted due to Safeway's refusal to donate to their Free Breakfast for Children Program, created to serve daily hot breakfasts to underprivileged children throughout the U.S. The United Farm Workers boycotted Safeway because the chain continued to sell California grapes despite the union's nationwide boycott. The Panthers and United Farm Workers also acted in solidarity with each other's goals in boycotting Safeway, including during a 1973 Panthers demonstration outside an Oakland Safeway store documented by KPIX Eyewitness news, in which protestors carried signs that read "Boycott Safeway, Boycott Grapes".

See all
User Avatar
No comments yet.