Wednesday, February 29, 2012

Safeway to count on non-core businesses for income growth

We're used to hearing about struggling companies disposing of non-core businesses in order to concentrate on what they know and do best. However, Safeway announced last week that with supermarkets being a relatively low-growth endeavor these days, adding more non-core businesses will enable it to grow operating income.

Examples of non-core activities for Safeway include Blackhawk gift cards and the property development center business, and the company plans to create a wellness program.

Safeway is in the process of disposing of Genuardi's supermarkets, once considered a core brand.

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