Safeway plans to exit the Chicago market where it operates 72 supermarkets under the Dominick’s banner by early 2014 after posting third quarter profits that were roughly half those of the comparable period the prior year.
The decision to exit Chicago follows similar move earlier this year when Safeway announced the sale of its Canadian operations.
"The decision to sell Canada Safeway and to exit the Chicago market is consistent with Safeway's priority of maximizing shareholder value," said Robert Edwards, Safeway president and CEO. "These actions will allow us to focus on improving and strengthening our core grocery business. We are continuing to review all of our businesses to optimize our allocation of resources, improve sales and grow operating profits."
The company said exiting Chicago would result in a cash tax benefit of $400 million to $450 million which