Safeway, a long-standing supermarket chain, is closing additional stores nationwide as its parent company, Albertsons, undertakes a strategic review of its extensive network. These closures come as consumers continue to face high food prices and reduced shopping options.
Recent store shutdowns include a Safeway location in Newport, Oregon, which closed in July after approximately 30 years of operation. Prior to that, a store on Maryland Avenue NE in Washington, D.C., ceased operations in May after four decades, and a Hayward, California, store closed in February. For many shoppers, these closures mean longer travel distances to find groceries and the loss of familiar neighborhood staples.
The closures are part of a broader operational adjustment by Albertsons, which owns Safeway and other grocery brands such as Vons, Jewel-Osco, ACME, Shaw's, and Tom Thumb. The company indicated it has resumed evaluating its store locations after a proposed $24.6 billion merger with Kroger was blocked by regulators in December 2024. Albertsons had previously slowed its store review process during the legal challenges to the merger.
Albertsons CEO Susan Morris stated that the company is continually assessing its store portfolio, making decisions on whether to retain, improve, or exit underperforming locations. The company reported closing 35 stores during fiscal year 2025, a significant increase from the 10 closures in the prior year. Concurrently, Albertsons opened nine new stores and completed 94 remodels, indicating a strategy focused on optimizing its real estate rather than solely shrinking its presence. The company is directing resources towards stores and markets identified as having stronger long-term potential.
Customers have expressed concerns about rising prices and decreased staffing at Safeway stores, with some shoppers noting a preference for competitors like Aldi and Trader Joe's due to cost differences. While Albertsons has not provided a comprehensive list of future closures, the company continues to invest in its existing store base, with approximately $1.83 billion allocated for capital expenditures, including store renovations, during fiscal year 2025.