Safeway reportedly will work to improve improving the merchandise selection at its Dominick’s division in Chicago while it looks for a buyer for the group that it bought for almost $2 billion just four years ago.
More extensive details were not available. However, a spokesman for the company told CBS MarketWatch, "We have received a lot of feedback from employees and various other people on things that would have us improve the business and run it as best as we know how.”
More extensive details were not available. However, a spokesman for the company told CBS MarketWatch, "We have received a lot of feedback from employees and various other people on things that would have us improve the business and run it as best as we know how.”
- KC's View:
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: Leading, of course, to the inevitable question: what took you so long?
Inappropriate product selection, with a focus on Safeway’s own-label as opposed to the local and regional products that made Dominick’s a success before the Safeway takeover, has always been a consistent problem for the division. If it had fixed this problem three years ago, maybe it wouldn’t be selling the company now.
But that’s all water under the bridge…
Now the speculation about what company might buy Dominick’s starts to get really interesting. Kroger seems to be the leading candidate, followed by Supervalu and Schnucks, for all or part of the company; breaking it up might be the best way for Safeway to make back as much of its investment as possible.
Another interesting possibility was brought to our attention yesterday, however. What if the former ownership of Dominick’s decided to buy it back?
