SN’s Analysts Roundtable, Part 2: Weighing in on Safeway, Kroger, Walmart

SN’s Analysts Roundtable, Part 2: Weighing in on Safeway, Kroger, Walmart

“Safeway was stuck. Management seemed to think that with a unionized cost structure, its only alternative [to low price] was differentiation, and Safeway wasn’t able to execute when it tried to differentiate.” —ANDREW WOLF, BB&T Capital Investments “[Kroger's acquisition of Vitacost.com] is a smart way for Kroger to get into the game fairly early.” —JASON DeRISE, UBS

Why Safeway decided to sell its stores to Albertsons, why Kroger acquired Vitacost.com and why Walmart needs to do a better job of execution and merchandising — those were among the topics discussed during SN’s 19th annual Analysts Roundtable.

They said they believe Safeway opted to sell because it was unable to get pricing down to levels that would enable it to increase sales.

“I don’t think Safeway really wanted to go through the pain of continuing to invest in

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Contact: Desiree Torres [email protected]

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