Safeway 2005 Annual Report Download - page 10

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8 SAFEWAY INC. 2005 ANNUAL REPORT
During 2005 we continued to extend our Every Day
Values Program and to work collaboratively with our
vendors to develop attractive promotions for our cus-
tomers. We also expanded our center-of-store offerings
to showcase popular products unique to various regions.
Through these and other initiatives, our eight largest
vendors all recorded increased sales volume with
Safeway during a year when their business with some
other food and drug retailers declined. These promotions
contributed significantly to improvements in our own
business as well. We gained market share in the U.S.
supermarket channel 51 of 52 weeks in 2005.
During the year we began rejuvenating and
redesigning our corporate brand offering. We also
introduced O Organics, a new line of more than 150
USDA-certified organic products available exclusively in
our stores. All O Organics products have passed strict
federal government standards for organic farming,
processing and handling.
Revitalizing the Center of the Store
Among our most popular offerings for time-pressed
consumers seeking one-stop shopping convenience are
prepaid gift cards. They can choose from more than
30 different cards, as well as our own card in various
denominations. We partner with well-known merchants
such as Nordstrom, Home Depot, Gap, Starbucks, Best
Buy, Barnes & Noble and Bed Bath & Beyond. Gift card
sales in 2005 continued to grow at a rapid pace.
One of our most successful meal solutions was the
2-Hour Turkey recipe we developed last holiday season
in collaboration with Sunset
magazine, a leading regional
lifestyle publication. Many of our
customers have told us this is the
most effortlessly delicious turkey
they have ever prepared. The
quick, easy recipe enabled them to
spend more time with their family
and friends at Thanksgiving.
We continue to expand and refine our assortment of
time-saving products and services such as ready-to-
serve meals, gasoline, online home shopping, in-store
banking and photo processing.
Providing Solutions For Customers
CHANGE IN SAFEWAY'S SHARE OF U.S.
SUPERMARKET CHANNEL*
2005 by Week
*Excludes Texas markets we exited
3.0
2.5
2.0
1.5
1.0
0.5
0.0
-0.5