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

Safeway INC.

AB

A

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

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

What’s Next? Challenge Responses Implementation

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

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

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

What’s Next? Challenge Responses Implementation

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

Top Complaints

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

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

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

Atmosphere Better eating area Better Wi-Fi connection

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

What’s Next? Challenge Responses Implementation

Implementation Renovate stores Increase customer service Higher Quality Additional Store Features

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

Financials

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

Financials Lifestyle Renovations Total Cost New StoresRenovations 927,000, Store Totals / /12 Per store80,000,00017,250,000

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

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

Additional Financial Slides

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* experts-how-much-does-child-care-insurance- cost/

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

Deliver and Pick-Up 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)