Pleasanton, California-based Safeway Inc. , the third largest grocer in the US, has reported a 28% rise in fourth-quarter net income to US$384.1m, or 76 cents a share. Overall, turnover increased 6.7% to US$10.7bn, while same-store sales rose 0.8% year-on-year, adjusted for the effects of a strike against the operator of Safeway's Northern California distribution centre at the end of 2000. Safeway said that without the adjustment, sales rose 2.1%.