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Price reductions, a greater focus on private label offerings, and enhanced marketing efforts are helping improve sales for Safeway Inc., which saw increased sales for its fiscal fourth quarter following a tough 2009.
"We are pleased with the improving trends in sales in 2010, driven by our price reductions, reinvigorated private label brands and targeted marketing,” said Steve Burd, chairman, president, and CEO. “These trends have continued into the first quarter of 2011. We are also encouraged by the results of our efforts to achieve cost reduction, especially in shrink and store-level efficiencies, as well as our strong annual free cash flow."
Total sales were $12.8 billion in the fourth quarter, up from $12.7 billion last year. Net income was $229.6 million (62 cents per share) for the quarter.
Net income for fiscal 2010 was $589.8 million ($1.55 per share), compared to a net loss for 2009 of $1.097 billion.
Safeway invested $282 million in capital expenditures in the fourth quarter. It opened seven new Lifestyle stores, completed 25 Lifestyle remodels and closed 15 stores. For the year, Safeway invested $837.5 million in capital expenditures, opened 14 new Lifestyle stores, completed 60 Lifestyle remodels and closed 45 stores.
Safeway operates 1,694 stores in the United States and Canada.