We returned to bargaining in June with UFCW 1518 and the bargaining committee. We made some minor progress, but we’re concerned about the lack of understanding of the changes and pressures in our industry and how this impacts our collective agreements.

It’s clear that our customers and communities continue to change and so too are their shopping behaviours.

B.C. families are budget conscious and looking for the best value and it’s no surprise that discount competitors are attracting more customers. Customers are buying down and this has negative impacts on full-service grocery retailer sales, market share and basket size.

Since the end of the pandemic, we’ve also seen customer shopping patterns shifting from demanding one-stop shop locations to shopping at many locations and formats to get the lowest prices.

We’ve been impacted by these changes in shopping patterns.

We’re also facing added pressure from other grocery and wholesale club competitors all seeking customer loyalty in an effort to increase their sales. Customers have limited budgets and need to decide carefully where to spend their hard-earned money.

So how can Safeway compete?

• We focus on serving our customers and running profitable stores. We need to drive sales and control our expenses to grow our business. The 7% increase in minimum wage in June was a significant cost to our business. And while we’re committed to rewarding you appropriately for your hard work, we must ensure it doesn’t jeopardize the profitability of our stores. Also, with any increases to wages we need to make sure we can compete within our industry and in this province.
• We need to address areas of competitive disadvantage. Operational constraints like an absence of vendor stocking language, complicated scheduling practices, and an inability to effectively introduce third party kiosks, have made it difficult for us to compete with the rest of the industry which doesn’t have these restrictions.
• We win together. We have to work together to beat the competition by providing exceptional value and service to our customers every time they come through our front door and spend a portion of their household budgets with us. In addition, the Company has prioritized creating a model for meaningful full-time jobs and a path for development for teammates who want to build their careers at Safeway.
• We continue investing. We have, and will continue to, invest in updating some of our current stores by giving them a much-needed facelift to strengthen the Safeway brand and better serve our customers.

Since 2018, we’ve come a long way as a team and we need to keep focusing on managing our business both in terms of investments and controllable costs to ensure we can keep the Safeway banner viable and healthy in this province.

We remain committed to reaching an agreement with the Union and your bargaining committee. There’s a lot of hard work ahead of us, but we can get it done by working together.

Keep checking in with us for business updates on SafewayTalks.ca.