This week, the Company’s bargaining committee was back at the table with UFCW 401. Both parties continued to discuss potential language changes to the collective agreement, and while progress is slow, items are being agreed upon and refined. Our bargaining goals remain the same; fair and competitive collective agreements. Our business goals remain the same; to invest in the future of Safeway and introduce FreshCo in the right Alberta markets.

We’ve been open with you regarding the challenges that some of our Safeway stores are facing in the province. It’s no secret that the Alberta economic climate is changing – and it will continue to change. It’s up to us to be agile and innovate to change alongside it so we can continue to serve our communities.

With the changing economy, many of our Safeway stores are simply in the wrong markets. We’re seeing more value driven shoppers who are focused on getting the best items at the most affordable costs. No matter how hard we work, we simply cannot meet the needs of these discount shoppers with our full-service Safeway model. We can, however, exceptionally serve these same customers with our proven Discount model. FreshCo has been well received across Western Canada. Our B.C. and Manitoba customers are embracing the new stores, and we’re certain our Saskatchewan customers will this summer. We’re confident that Alberta customers will welcome FreshCo, too.

We believe in Safeway, and we know that it is still the right fit in many communities. We’re committed to continuing investing in Safeway and bolstering our brand in the markets where it makes sense, providing customers with the shopping options they’re looking for.

In uncertain times, we need to be able to compete with a fair collective agreement in order to achieve success. We take collective bargaining seriously and we’re committed to moving the conversation forward so we can win, together. As we’ve shared with you before, should a strike take effect, it could continue for a long time. This means frustrated customers, happy competitors, damage to our reputation, significant lost sales, no capital investment, and at the very core, teammates who are forced to disrupt their lives and face financial insecurity for their families. A strike will not solve the key issue we face – many of our Safeway stores will still be in the wrong markets. Striking will simply worsen an already challenging situation.

Thank you for your continued hard work in our stores and commitment to our customers. We look forward to sharing more progress with you soon on Safeway Talks.