The Chicago Tribune reports this morning that Safeway-owned Dominick’s is investing more than $200 million into the renovation of its Chicago-area stores, not to mention ramping up its marketing budget hoping to reverse what is called “years of decline.” While the company says that these moves into the “lifestyle” format used by Safeway to significant success elsewhere in the country reflect the company’s commitment to the division, the Tribune notes that rumors continue to “swirl” about it being for sale.
- KC's View:
Many of the rumors seem to be fueled by the fact that Wisconsin-based Roundy’s – which is helmed by Bob Mariano, who used to be CEO of Dominick’s – plans to open stores in Chicago…which would appear to create an opportunity for Safeway to sell and Roundy’s to buy.
It could happen. But I have to admit that for the first time in a long time, it looks to me like Safeway plans to hold onto its Chicago division…at least for the time being. (Which probably means they’ll announce a sale later this week…)