US: Safeway sees profits boosted by cuts, pricing
US supermarket group Safeway has maintained its guidance for fiscal 2009, predicting that its "aggressive cost reduction effort" and pricing initiatives will fuel growth.
During a conference it staged for analysts and investors yesterday (4 December) Safeway issued EPS guidance of US$2.34-2.44.
The company said profits would be driven by non-fuel ID sales growth in a range of 2-3%. The group has slashed prices in at its US stores in order to increase customer footfall in what it described as a "tough" economic environment.
Management also predicted that capital expenditure would total approximately $1.2bn, down from $1.6bn the previous year.
"We are focused on growing our business in this tough economic environment, as well as in the long run," said Steve Burd, chairman, president & CEO.
"With the freshest asset base in the supermarket industry, a differentiated offering, and ongoing investments in everyday price, we believe we are very well positioned to improve our sales momentum in 2009."
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