“Obviously Albertsons is out for blood and what happens, happens.”-Greg Conger, United Food and Commercial Workers Union Local 324, Buena Park, California
In Canada, the Sobeys-Safeway chain announced the elimination of 1-thousand 3-hundred distribution/administration jobs! The company is building new automated grocery distribution warehouses to replace humans. The layoffs are also part of the ongoing consolidation of Sobeys and Safeway grocery ops, after Sobeys took over the Canadian Safeways in 2013, as well as new consolidation ops after Sobeys-Safeway took over part of grocery co-op Atlantic in June of this year.
In the United States, the chaos created by the Cerberus takeover of Albertsons, Safeway, Vons, Jewel-Osco, Shaw’s, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market and Carrs, is ramping up.
In Oregon, yet more Safeways are being shutdown. You can’t blame competition or declining customer base because Rockwood city administrators say it’s the fourth grocery store they’ve lost: “It’s a huge hit. If we weren’t a food desert before, we certainly are now! To lose another Safeway … that’s four major grocery stores out of a community that’s growing in population, not decreasing!”– Josh Fuhrer, Gresham Redevelopment Commission
In connection to the Rockwood Safeway shutdown, reports say students from Portland State University conducted a study and found that the grocery store exodus from Rockwood has made the local Albertsons the most expensive place for food. Now you know the real reason for grocery store mergers and shutdowns, reduce competition and jack up the prices so the stockholders get a bigger slice of pie.
Then there’s the Gresham Safeway and the Milwaukie Safeway, both shutting down in August. Spokeswoman Jill McGinnis blamed lack of big profits.
However, in Wyoming Albertsons-Safeway announced their expansion of grocery ops in The Cowboy State is requiring the “need to hire the right people to serve our customers.” The untrustworthy corporate administrators claim they will hire hundreds of people to “meet our business demands” created by their additions of bakery, butchery and florist ops in Wyoming (you mean they didn’t already have those operations, like they’ve had here in next door Idaho for decades? No wonder a lot of western Wyomingans come to eastern Idaho to grocery shop).
After shutting down or selling off hundreds of stores (see list below), ostensibly to cut costs, the highly edumacated elitist wunderkinds at Albertsons-Safeway told Supermarket News that they are planning to spend money opening hundreds of new stores! Their plan involves 115 stores, mostly remodeling of existing stores but some being considered ‘replacement’ stores for existing operations. Here’s what the hypocritical ceo Bob Miller said: “We’re investing in making our stores places where customers want to shop and employees want to work because we know that’s the best way to win in the marketplace.” (it’s hypocritical because of the thousands of jobs they’ve already destroyed)
But things aren’t good for the Cerberus created Albertsons-Safeway. United Natural Foods canceling their food supply contract with Albertsons, before the end of September (the contract was good until July 2016)! Administrators with United Natural Foods indicated that they were actually losing money doing business with Albertsons: “…we believe that this course of action is in the best long-term interests of United Natural Foods as it will now allow us to redirect our resources to pursue our previously announced plans to expand….We plan to utilize the capital freed up from the termination of our Albertsons’ relationship to further pursue our strategic objectives, and we believe this will provide greater value for our shareholders long term.”-Steve Spinner, ceo
And the problems with Haggen have gotten worse. After announcing they were shutting down stores they bought from Albertsons-Safeway, now Albertsons is actually suing the Washington based grocer.
Albertsons-Safeway says Haggen was supposed to pay for the inventory in the 146 stores it recently took over. Albertsons-Safeway claims Haggen failed to pay for the inventory in 38 California stores and owes Albertsons-Safeway $41-million USD as a result!
However, Haggen says Albertsons-Safeway violated the terms of the sale of those California stores: “It is unfortunate Albertsons has chosen to file what appears to be nothing more than a strike suit to avoid addressing its wrongful conduct. Haggen will mount a vigorous defense and aggressively prosecute its counterclaims…”-attorneys for Haggen
Stock issue to result in more store shutdowns?
Updated store shutdown list:
Alberta, Canada: Sobeys-Safeway eliminating hundreds of distribution/administration jobs by 2017!
Manitoba, Canada: Sobeys-Safeway announced it will shutdown it’s King Edward Street warehouse by 2016, at least 172 jobs lost!
Ontario, Canada: Sobeys-Safeway eliminating hundreds of distribution/administration jobs by 2017!
Arizona, U.S.A.: Peoria Safeway and Claypool Safeway shutdown in June, at least 94 jobs affected. The following grocery stores now Haggen; Anthem Safeway, two Tucson Safeways, Tucson Albertsons, two Scottsdale Albertsons, Flagstaff Albertsons, Prescott Valley Albertsons. In Lake Havasu, three Safeway and seven Albertsons are being switched over to Haggen.
California, U.S.A.: The new Albertsons-Safeway laid off another 21 Safeway employees in June. Two Albertsons-Safeway owned Vons stores shutdown in Fresno, 127 jobs lost! Albertsons-Safeway laid off 129 people from their Pleasanton HQ in April. Albertsons-Safeway laid off another 188 Pleasanton employees in May! Albertsons-Vons shutdown its Riverside La Sierra Plaza Vons and two Bakersfield Vons in May, because they are “not meeting company goals.” Arcadia Vons Pavillions SuperStore shutdown on 18 March 2015, at least 168 jobs lost! The 32 years old Hemet Vons shutdown on 28 December 2014, at least 55 jobs lost. Company administrators claimed it had nothing to do with the hostile takeover by Cerberus. Marina Del Ray Albertsons, shutdown by 26 February 2015, at least 80 jobs lost. Pleasanton Safeway HQ laid off at least 26 people in February 2015. In Pleasonton, Safeway laid off an additional 18 HQ employees in March. A San Diego Albertsons shutdown by 26 February 2015, at least 63 jobs lost. The following additional grocery stores will become Haggen; Vons in Palm Desert, Pavillions in Rancho Mirage, two Santa Barbara Albertsons, two Goleta Vons, Lompoc Albertsons, Paso Robles Vons, Arroyo Grande Albertsons, San Louis Obispo Albertsons, Atascadero Albertsons, Los Osos Vons, Palmdale Albertsons, three Bakersfield Albertsons (don’t be surprised if at least one is closed), two Simi Valley Albertsons, Simi Valley Vons, Oxnard Albertsons, Carpinteria Vons, Camarillo Albertsons, Ventura albertsons, Yorba Linda Albertsons, two Tustin Vons, Mission Viejo Vons, Mission Viejo Albertsons, Trabuco Canyon Albertsons, Laguna Beach Albertsons, Laguna Niguel Vons, Corona Del Mar Albertsons, Irvine (Vons) Pavillions, eight San Diego Albertsons (don’t be surprised if several are closed), San Yisidro Albertsons, Rancho Bernardo Albertsons, Coronado Albertsons, San Marcos Vons, two El Cajon Vons, Santee Albertsons, Poway Albertsons, Del Mar Albertsons, two Carlsbad Albertsons, two La Mesa Vons, three Chula Vista Vons (don’t be surprised if at least one is closed), Upland Albertsons, Diamond Bar Vons, Rancho Cucamonga Albertsons, Chino Hills Vons, Burbank Albertsons, Woodland Hills Vons, Westlake Village Albertsons, Thousand Oaks Albertsons, Santa Clarita (Vons) Pavillions, Saugus Vons, Newbury Park Vons, Tujunga Albertsons, Long Beach Albertsons, two San Pedro Albertsons, Lomita Albertsons, Torrance Albertsons, Santa Monica Albertsons, three Redondo Beach Albertsons (don’t be surprised if at least one is closed), two Los Angeles Albertsons.
Colorado, U.S.A.: Yampa Valley Medical Center has agreed to buy the abandoned Craig Safeway store from city council member Kent Nielson. KKCO reports instant decline in customer traffic for other business at the Monument Valley Shopping Center after the Redland’s Safeway shutdown. Redlands Safeway, Castle Rock Safeway, Thornton Safeway, Westminster Safeway, three Aurora Safeways, Littleton Safeway, Denver Safeway and Centennial Safeway, hundreds of jobs lost by June! Colorado Springs Albertsons shutdown in March. Cerberus administrators say it has nothing to do with their takeover of Safeway-Vons: “That store basically has not been profitable for quite some time, despite the best efforts of our company and associates there and the location…..That’s why we’re closing it.”
Florida, U.S.A.: Albertsons issued a WARN saying they will shutdown their Clearwater store in May, 86 jobs lost.
Hawaii, U.S.A.: Drugs pusher Walgreens canceled plans to open a pharmacy in the Kauai Safeway: “As part of this process, Walgreens did a comprehensive financial reassessment of its plans to open a new store in Lihue on Kauai, and have concluded that it is not in the company’s best interests to move forward with opening a store in that location.”
Illinois: The Jewel-Osco HQ in Itasca was sold for $23.7-million. A local news report implied it was the result of the hostile takeover of Safeway by Albertsons.
Montana: In Missoula, two Safeways sold to Orange Street Food Farms-Fresh Market. Recent news reports said that one is being torn down for the Providence-Saint Patrick’s Medical Center, despite all previous reports saying both former Safeways were now Fresh Markets.
Nevada, U.S.A.: The following grocery stores now Haggen; Boulder City Vons, three Henderson Albertsons (don’t be surprised if at least one is closed), three Las Vegas Vons (don’t be surprised if at least one is closed).
Oregon, U.S.A.: The Gresham, Milwaukie and Rockwod Safeways shutting down by the end of August. Beaverton Albertsons shutdown on 20 June, 68 jobs affected. In Lake Oswego, Albertsons taken over by Haggen. Cerberus administrators made the exact same claim as in their Colorado Springs shutdown saying “The store has not been profitable for quite some time.” This is interesting because according to local news reports there are only two grocery stores in the city! In Lake Grove, the Albertsons being switch over to Haggen. Safeway shutting down their Clackamas regional office, 91 jobs lost by March. Safeway in Ashland, two in Klamath Falls and one in Springfield to become Haggen. Albertsons in Baker, Beaver, two in Bend, one in Clackamas, two in Eugene and in Grants Pass, one in Keizer, Milwaukee, Sherwood, West Linn and two in Tigard.
Pennsylvania: The last Safeway owned Genuardi’s grocery store shutdown, 40 jobs lost.
Texas, U.S.A.: Arlington Tom Thumbs shutting down in June, at least 45 jobs affected. In East Dallas, an Albertsons was renamed Minyard Sun Fresh Market. Reports said the grand opening was delayed due to problems switching over the cash register system. A second East Dallas Alberstons became Minyard Sun Fresh Market on 16 February. Only one of the three East Dallas Albertsons will remain Albertsons. One store manager said the changes are a direct result of the takeover of Safeway. Interestingly I found a report that said Cerberus swore there would be no name changes after the takeover of Safeway, but they failed to explain the sale of 12 stores to RLS Supermarkets (apparently the result of a court order). The Tom Thumb grocery stores in Bedford and Grapevine converting to Minyard Sun Fresh Market.
Washington, U.S.A.: The Merced Island Albertsons being shutdown in July, the pharmacy has already shutdown. The Poulsbo Albertsons shutting down in July, 60 jobs affected. The Safeway in Spokane Valley shutdown in March, 60 jobs lost. Company administrators said it was not due to the takeover by Cerberus controlled Albertsons, but that the lease expired and it wasn’t worth renewing it. In Kirkland, reports that Goodwill thrift store is taking over the now vacant Albertsons store. Haggen took control of the Monroe Albertsons. Safeway becoming Haggen in Gig Harbor and Tacoma beginning in March. Albertsons becoming Haggen in Olympia, Puyallup, Tacoma and Lakewood beginning in March. Albertsons becoming Haggen in Federal Way and Milton by June. Albertsons in Port Angeles, Wenatchee and Shoreline becoming Haggen in February. Albertsons in Redmond, Walla Walla, Snohomish, Silverdale, Burien, becoming Haggen in March. Albertsons in Seattle, another one in Burien, Renton, Bremerton and Milton becoming Haggen in June. Shoreline Safeway becomeing Haggen in February. Safeway in Everett, Renton, Oak Harbor and Port Orchard in March. Liberty Lake Safeway becomes Haggen in June.
WARN=Worker Adjustment & Retraining Notification