Safeway (SWY) Jumps on Chicago Withdrawal Plans

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.

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