Safeway's resurgence is built on attention to detail

Article Abstract:

Safeway Inc has increased yearly earnings 42.4% from 1992 to 1997 by cutting costs and increasing sales and returns on investments. CEO Steven Burd joined the firm in 1992 and reversed declines in same-store sales by reducing costs and using the savings to lower prices. Burd centralized purchasing and introduced the Safeway Select private label. Burd cut capital spending from $550 million to $290 million and sought a 22.5% pretax return on new store and remodeling projects. Safeway will expand its operating profit to 6.4% in 1998, overtaking Albertson's Inc's 6.2%, according to Donaldson, Lufkin and Jenrette.

Comment:

Increases yearly earnings 42.4% between 1993 and 1997 with cost cuts and centralized purchasing

Supermarkets and Other Grocery (except Convenience) Stores, Supermarket Chains, Company Personnel, Safeway Inc., Safeway Select

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Sears considers sale of HomeLife unit, raising speculation on Parts America

Article Abstract:

Sears, Roebuck & Co. announced that it is studying the possibility of selling its HomeLife unit. The announcement is seen as a sign that the company may sell its struggling Parts America division. HomeLife was introduced by Sears in 1989 and expanded in the 1990s. The company has commissioned Salomon Smith Barney to look into alternatives for HomeLife. Those alternatives entail selling off the division, forming a partnership, or keeping the division as it is now.

Comment:

Announced that it is studying the possibility of selling its HomeLife unit

Department Stores, Sears, Roebuck and Co.

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Nordstrom reports 18% increase in net, bolstered by gain, inventory controls

Article Abstract:

Nordstrom Inc. reported an increase in earnings of 18% for the second-quarter of 1998. The company's figures were aided by a one-time gain and by improved inventory controls. Nordstrom also posted a 6.9% improvement in sales. The company posted net income of $69.2 million for the quarter that ended on July 31, 1998. During the same period in 1997, Nordstrom posted $58.6 million.

Comment:

Reported an increase in earnings of 18% for the second-quarter of 1998

Sales, profits & dividends, Apparel & Shoe Stores, Clothing and Clothing Accessories Stores, Nordstrom Inc.

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