NEW YORK (TheStreet) -- Safeway (SWY) was jumping Friday after the company said it sold four Dominick's stores in the greater Chicago area to New Albertsons Inc in line with its strategy to exit the region. The stores will be converted to New Albertsons-branded Jewel-Osco supermarkets.
Safeway shares were 6% higher at $33.47 as of 1:16 p.m. New York time.
After posting third-quarter results Thursday, Safeway detailed plans to unload all 72 Safeway-owned Dominick's stores in the area due to loss of profitability and a need to consolidate. It is uncertain how the remaining 68 stores will be shed.
"These actions will allow us to focus on improving and strengthening our core grocery business," said CEO Robert Edwards in a statement on Thursday. "We are continuing to review all of our businesses to optimize our allocation of resources, improve sales and grow operating profits."
Written by Keris Alison Lahiff.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV