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The 1980s

Previously...

After a dry spell in the 1970s, Safeway began to contemplate design again in the 1980s, with both its remodels and its new stores.

New prototypes included a model with large wall graphics of food items, the "marketplace" stores with models of small-town storefronts above major departments, and a related gray and red look (without the models) for smaller stores and remodels.

Safeway added a Mexican presence with its Casa Ley partnership in 1981. The Omaha division was sold in 1982, while the Australian division was sold to Woolworth's Ltd. (not related to the American dime store chain) in 1985. In addition, Safeway bought Northern California's Brentwood Markets and its warehouse chain, Pak 'n Save, in 1983. James Rowland became company president in 1983.

The big news, though, was a hostile takeover bid in 1986. Few prior events had affected the chain so dramatically. With the assistance of KKR, the company was take private and assumed tremendous debt. Entire regions were liquidated, and Safeway's national presence was reduced to Northern California and several western states and the Washington DC area Altogether, nearly half the 2200 stores in the chain were sold.

Unloaded were the UK, Dallas, Salt Lake City, El Paso, Oklahoma, and Liquor Barn divisions (1987) and the Kansas City, Little Rock, Houston divisions (1988), among other areas. Many of the liquidated divisions just happened to be in areas where Safeway had labor problems. Stores in these areas were acquired by Piggly Wiggly, Kroger, Randall's, Farm Fresh, and various independents.

In Southern California, Safeway sold most of its stores to Vons, in exchange for a 30% interest in the company. Safeway pulled out of established markets like Los Angeles and San Diego, and diminishing operations in Fresno, Modesto, Stockton, and Sacramento. Save-Mart purchased the few remaining Fresno stores in 1996.

In San Francisco:

Safeway started the 1980s with 15 San Francisco stores. The oldest was the pre-1945 Monterey Boulevard store (which remains Safeway's oldest location in the city). Four stores closed during the decade and five new stores opened, for a total of 16 in 1990. Another store in the first level of an apartment building opened in late in the decade (on Ocean Avenue) but was closed in approximately 1995.

On to the 1990s...