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The Seattle Post-Intelligencer reports that Safeway’s private label financial institution, Safeway Select Bank, is being closed.

Kiosks and 125 in-store branches are being shuttered, deposits are no longer being accepted, and the operation will be completely shut down once regulatory approval is received. Savings and checking accounts will be sold to E*TRADE Bank.

The decision to close Safeway Select Bank was made by Canadian Imperial Bank of Commerce because it did not want to wait four or five years to achieve profitability with this venture.

Safeway continues to lease space to banks including Wells Fargo.
KC's View:
Originally, the private label banking initiative was seen as part of an overall strategy to extend the Safeway label to new and different consumer services, including gasoline.

But these are tough times, and long-term gratification just doesn’t seem to be good enough.