1. Eagle Rock Consulting Group LLC. Edoardo Cuomo, Joseph Joyce, Jillian Kupcha, Mathew Fogel, Gianna Riccoboni

2. Safeway INC.

3. AB

4. A

5. Who is Safeway? Second biggest grocery chain in the United States - 12 distribution centers Currently in low-price supermarket industry

6. History April 1912: Sam Seeling Company founded, single grocery store in Los Angeles After WWI: bought by W.R.H. Weldon 1925: Safeway becomes name 1927: Initial Public Offering 1947: Sales exceeded $1 billion for first time Present: 1418 stores in the United States

7. What’s Next? Challenge Responses Implementation

8. The Challenge Safeway once had a strong market hold Supermarket industry has changed radically Safeway’s market share continues to decrease Lacks a clear distinctive market position

9. The Challenge Discount vs. High-End Grocer Increased competition from: No longer profitable to compete with these companies

10. Our Future Safeway must conform to new standards Build a concrete stance; upper- scale segment

11. What’s Next? Challenge Responses Implementation

12. Response Becoming a high end brand in the consumer/customer service grocery segment Implement a differentiation strategy with a mix of store improvements, better customer service, higher quality products

13. Top Complaints

14. Delivery Service Those whom frequently need delivery -Consumers that rarely have time to shop  Offer discounts to consistent delivery customers

15. In Store Pick-up Anybody -Visible emphasis -Quality image -Change perception of shopping

16. Day Care Improve the experience at the stores Place for kids Better for kids and parents

17. Atmosphere Better eating area Better Wi-Fi connection

18. Better Quality and Customer Service Training employees Well informed about the products Suggest products to customers Suggest to use the “Just For U” program

19. What’s Next? Challenge Responses Implementation

20. Implementation Renovate stores Increase customer service Higher Quality Additional Store Features

21. Logistics Course of action: -5 test locations -All in California -6 months to renovate and train employees -Test locations for 18 months

22. Financials

23. Financials Renovations17,250,000 Day Care700,000 Advertising500,000 Quality Control/Training100,000 Delivery/Pick-up450,000 Total19,000,000

24. Financials Lifestyle Renovations Total Cost New StoresRenovations 927,000,000912 Store Totals720000000207000000 720000000/9207000000/12 Per store80,000,00017,250,000

25. Budget Over estimate $20 million per store Total of the whole project 2 years $100 million total Out of $200 million dollars Extra money removed for future

26. Larger Plan Bring all Safeway's to the high end market Implement over the next 10 years Rebuild the brand

29. Additional Financial Slides

30. Day Care Insurance - $2,000* a year  Food - $2.50 per child  $3,000  $2,000 Employees – 31,186*  15 an hour  2080 hours a year  5 employees  $155,954 Supplies/equp - $450 per child  1,200  800  $540,000  $360,000* www.cultureofsafety.com/2013/04/ask-the- experts-how-much-does-child-care-insurance- cost/

31. Quality Control NSF GFTC is the company that we found does training courses in quality and customer service (consulting firm) http://www.gftc.ca/courses-and-training/course- details.aspx?course=FST14 Total employees: 171,000 Total Stores 1418 Average per store 121 Training per employee= 525 525*121= 63, 525

32. Deliver and Pick-Up http://www.ford.com/commercial-trucks/e- serieswagon/ Two Delivery trucks $50,000 each -Ford starting at $31,000 -Add customization Extra money for more training and additional employee salaries over next 18 months ($350,000)