The Company’s bargaining committee was back at the table last week, working hard to secure a fair collective agreement with UFCW 401. As always, our bargaining goals remain the same: fair and competitive collective agreements; and our business goals remain the same: to invest in the future of Safeway and introduce FreshCo in the right Alberta markets. We know that progress to date has at times been challenging, but last week, we took measures to address the Union’s concerns and encourage real, meaningful advancement at the table.

By removing the hurdles that the Union felt were a barrier to progress, we now expect to see significant and timely progress.

It’s no secret that some of our Safeway stores continue to struggle as the economic climate in Alberta continues to shift. With an increasing number of value-driven shoppers across the province, many of our Safeway stores are simply in the wrong markets. No matter how hard we work, we just can’t appeal to these discount shoppers with our full-service Safeway model.

We know that a fair agreement is possible. We recently secured a collective agreement for our FreshCo stores in Saskatchewan, where four Safeway stores will temporarily close for renovations before re-opening as FreshCo locations in summer 2020. FreshCo continues to be well received across Western Canada, and we’re excited for our Alberta customers to experience our proven Discount model too.

This being said, we want to be clear that it is not our intention to convert all Safeway stores. There’s a place for Safeway in many of our communities, just as there is a place for FreshCo. We whole heartedly believe in the Safeway brand and are excited for the significant investments planned for the coming years. However, it’s imperative that we have the right agreement in place to make these plans a reality.

Thank you to our hardworking store teams for exceeding our customers’ expectations during this busy holiday season, as we’re fighting for every possible sale during difficult economic times. We appreciate your dedication and we’ll continue working towards an agreement that is in all of our best interest. We look forward to sharing more progress with you soon on Safeway Talks.

Happy Holidays and Merry Christmas