Safeway announces closure of 10 stores in Colorado amid financial strains
- Safeway plans to close 10 stores in Colorado, including four in the Denver area.
- The closures result from the merger of Intermountain and Denver divisions and the poor performance of certain locations.
- This difficult decision aims to allow Safeway to invest further in its store network and adapt to customer needs.
In Colorado, Safeway is set to close 10 stores, with all closures scheduled for on or before November 7 of this year. This decision stems from the recent restructuring of the company, wherein the Intermountain and Denver divisions were merged into the new Mountain West Division. The closures include four stores in the Denver metro area, and a spokesperson for Safeway announced that this painful decision came after a thorough evaluation of store performance. These closures will not only impact Colorado but also include stores in New Mexico and Nebraska, indicating a more extensive operational reevaluation. Citing reasons for the store closures, the company pointed to declining sales figures, increased operational costs stemming from a recent labor strike, and the inability to successfully complete a sale to Kroger's earlier this year. The impact of this decision is expected to significantly affect hundreds of employees, raising concerns in local communities. The local mayor of Lamar, where one of the store closures is taking place, shared his disappointment on social media, explaining that the decision was influenced by lower sales and the ramifications of the labor strike. He expressed hope that a new plan for the building would be in place to serve the community, whether that meant a potential new grocery store or another type of retail outlet. The union representing grocery workers successfully negotiated terms with Safeway earlier this year to resolve a significant strike, highlighting the labor challenges the company faced. This chain of events represents a broader trend in the grocery industry, where companies are increasingly reassessing their market strategies amid changing consumer behaviors and financial pressures. Safeway's spokesperson stated that the company had served these communities for decades and that the closures were not made lightly, emphasizing a desire to continue investing in their network in ways that align with what customers now need. This strategic decision is indicative of Safeway's aim to adapt to evolving demands, seeking to position itself for better long-term success and innovation in service delivery.