Dive Brief:
- Safeway supermarket chain has announced plans to sell its Dominick’s store locations and exit the Chicago market in 2014.
- Following the announcement, company stock values climbed more than 6% to $33.50 per share.
- Safeway expects the move to result in a tax benefit which could reach up to $450 million.
Dive Insight:
Although it’s not immediately clear how Safeway plans to sell off all 72 Chicago-area Dominick’s stores, the company announced Jewel-Osco intends to acquire four of the locations with the $4 billion in profits from the sale will be used to help Safeway pay off debts and buy back shares. In June, Safeway announced plans to sell off its Safeway Canada locations.
