Teammates,
Today, we are meeting with UFCW 401 to continue collective bargaining.
At the bargaining table, we are sharing information about the store network in Alberta that helps explain the challenges we are facing. It’s important to me that we continue to be transparent with you.
There are approximately 50 stores within the Safeway Alberta network that are struggling. The balance of our Safeway stores are holding their own, although they have some challenges.
Of these struggling stores, 20 are in the wrong markets. We know customers are looking for discount shopping options and we cannot meet their needs with full-service stores. We are considering converting these 20 Safeway stores to FreshCo. These conversions would allow us to better compete and provide more viable jobs for employees.
Converting some of our Safeway stores to FreshCo stores does not solve all of the challenges we are facing in Alberta. We have a solid plan to win at Safeway. We are investing in marketing and merchandising. We also have a significant amount of capital allocated to bring this plan to life.
It’s our current intention to invest $200 million in the Safeway network over the next five years. The challenge is we cannot accomplish these plans if we do not have the right collective agreement in place to provide stability for our business. We need stability through a number of factors to invest the money. The FreshCo expansion plans are not included in the $200 million investment.
I’ve been on the Safeway team for 43 years and I’m committed to winning with you. You have my commitment that my leadership team and I will do everything we can to work with you now and through any changes, so we can win together. We will continue to be transparent with you.
We take collective bargaining seriously and want to move the conversation forward. If we can work together to lay the proper foundation for the Company’s future, including the introduction of FreshCo into Alberta, we are confident that we can win together.
Thank you for your continued hard work and commitment to Safeway and our customers.
Scott Chollak
VP, Operations, Alberta
