In 2006, Cerberus bought 661 Albertsons stores. A week after the purchase, the company announced the closure of 100 stores within two months. In the years following the purchase, store closures took place in Texas, Oklahoma, Nebraska, South Dakota, Florida and Colorado. Months after the acquisition, 1,000 workers were laid off. A year later, Cerberus divested of 72 Albertsons fuel centers and sold 49 store locations. More recently, 26 closures were announced in 2012 as part of a broader strategy to shut down 60 stores nationwide. Meanwhile, last year Cerberus acquired SuperValu, Inc., which controls the remaining 564 Albertsons stores. Similarly, in 2004 Cerberus acquired the Mervyn department store chain. A year later, 4,800 jobs were destroyed and 62 stores shuttered.
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Denver bread gone....what next?
Did you even know what those 2006 closed stores were like? They were far more expensive than their competition, they weren't profitable, and were either outdated Skaggs stores or were ill thought out stores from the 1990s Albertsons building boom. Unless you work backroom depts at Safeway you don't have to worry about it much.
Yep and so far it is great for the stores.
They cut out all the silly fat backstage.
We moved from Steve Burd's vision of backstage vs stores and squeezing water out of rocks to people that actually want to run grocery stores.... and we like it
Hey Anonymous66551 Let's realize that investment bankers bought Safeway. Safeway got sold because the former owners could not get as much profit out of it as the shareholders were promised by the investment bankers. Cerberus (name refers to the dogs that are the hounds of hell). Look up the Google images for "Cerberus": Does that give you confidence that more baggers, delivery service for the housebound elderly, and a better store are what is ahead? Take a quick look at the investment banker's way to make piles of money for shareholders: It is described in the experience of Mervyn's. It's a pretty straightforward procedure.
1.) Buy a company (Safeway), Make it look more profitable in a big hurry (i.e. disbanding the shrink program and telling stores to stock the shelves with as much product as possible, it doesn't matter if you have to throw half of it away due to spoils) and for the short run by cutting costs (see: massive layoffs), selling assets (i.e. the significant properties Safeway owns), reducing services, and other "Economies".
2.) This than makes all the ratios banks use to give loans much more favorable, even though the new financial plan is not sustainable for a long term business.
3.) But with the new rations, a hugh refinance gets made with the banks, thus saddling Safeway with massive debt and yielding obscenely big "fees" (paid out of the capital that is lent) for Cerberus investment bankers and the shareholders.
4.) Adding this massive load of debt to an already crippled grocery business, Safeway then declares bankruptcy, where Cerberus then sells it at fire-sale prices, once again yielding big profits for themselves.
Did you expect the hounds of hell to care about Pleasanton's grocery needs or your local store needs? They are interested in profits, indeed they have a fiduciary legal responsibility to make the most profitable arrangements for their shareholders. The rest of us will just have to get over it--get over the loss of grocery store, loss of jobs, disruption as the properties are all sold off and everything settles into something totally different.
No one is safe...you think at the store your precious job is untouchable. Think again and start preparing yourself for another industry. That is all-
Oh really?.. ask any store director, safeway backstage was horrible.
Report volunteer hours, correct checker to sacker ratio, the new insane hiring system.. the Arizona people would call us and ask us the job description of a baker.
The customer service center in Arizona was worse, we would do damage control all day about how they handled customers. Slow moving item report conflicted with OOS focus.Roll out of Fuel discount was horribly thought out, it could of been received well if presented differently.
I can go on and on...
Backstage Safeway spent all there time giving us things to do that didn't matter..... Its about selling groceries... there are no check stands at the office.
At anonymous 66176, what is it that you had to do that didn't matter to employees, customers or anyone else? The backstage is very important and take a lot of the heat and pressure off of the stores. As someone who has worked both sides, I know both are equally important.
No store level layoffs
Looks like thousands of layoffs backstage
and guess what
We are still selling Groceries.
@ store level we are excited that they let the backstage people go.. now we can sell groceries
instead of doing stupid things that never mattered to employees, customers, or anyone else
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