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.