Safeway Inc. is one of the most well-known supermarket chains in North America operating under the ownership of a larger corporate entity. If you want to know who owns Safeway, this article is for you.
Once a publicly traded company, Safeway has undergone significant ownership changes in recent years.
This article provides a comprehensive overview of Safeway’s history, ownership structure, key shareholders, financial performance, and competitive positioning.
History of Safeway
Safeway was founded in 1915 in American Falls, Idaho, by Marion Barton Skaggs. The company expanded rapidly pioneering self-service grocery shopping and introducing private-label brands.
It grew through acquisitions and store expansions, eventually becoming one of the largest supermarket chains in the U.S.
In 2015, Safeway was acquired by Albertsons Companies, Inc., which operates multiple supermarket brands across the country. This acquisition marked the transition of Safeway from an independent public entity to a subsidiary of Albertsons.
Who Owns Safeway?
Safeway is currently owned by Albertsons Companies, Inc., a grocery retail giant that operates numerous supermarket chains across the United States.
Albertsons itself is privately held, with the majority stake controlled by Cerberus Capital Management, a leading private equity firm specializing in leveraged buyouts.
Cerberus initially acquired a stake in Albertsons in 2006 and later played a pivotal role in the 2015 merger with Safeway, consolidating its position in the supermarket industry.
In addition to Cerberus, other investors, including real estate firms and private equity groups such as Kimco Realty Corporation, Lubert-Adler, and Klaff Realty, hold minority stakes in Albertsons, contributing to its financial stability and strategic direction.
List of Safeway’s Shareholders
Institutional Shareholders of Albertsons (Safeway’s Parent Company)
- Cerberus Capital Management (32.1%) – The largest shareholder of Albertsons, Cerberus owns a controlling stake and influences major corporate decisions, including financial strategy and expansion plans.
- Kimco Realty Corporation (7.5%) – Holds a minority stake in Albertsons and plays a key role in real estate management, leveraging its expertise in retail property development.
- Lubert-Adler Partners (5.3%) – A real estate investment firm that has provided financial backing to Albertsons, focusing on store acquisitions and property management.
- Klaff Realty (3.8%) – Specializes in retail real estate and supports Albertsons in property leasing and expansion strategies.
- Schottenstein Stores (2.4%) – A retail conglomerate with a history of investing in grocery and department stores, contributing to Albertsons’ capital structure.
Individual and Insider Shareholders
- Vivek Sankaran (CEO of Albertsons) – While he does not own a significant portion of the company, Sankaran plays a crucial role in the operational and strategic management of Safeway, overseeing business growth and market positioning.
- Albertsons Board of Directors – Various board members, including representatives from Cerberus and other investment firms, have personal stakes in the company, ensuring alignment with long-term growth objectives and corporate governance.
Who Controls Safeway?
Although Safeway operates under the Albertsons Companies umbrella, decision-making is largely influenced by Cerberus Capital Management and Albertsons’ executive leadership.
Key Decision-Makers
- Vivek Sankaran (CEO, Albertsons Companies) – Oversees all supermarket operations, including Safeway, and drives corporate strategy.
- Albertsons Board of Directors – Comprised of executives and private equity representatives who influence major business decisions.
- Cerberus Capital Management – As the majority owner, Cerberus plays a vital role in shaping the financial direction and expansion of Safeway and other Albertsons brands.
Annual Revenue and Net Worth Safeway
Annual Revenue: Albertsons Companies, including Safeway, reported revenue of approximately $79 billion in 2024.
Net Worth: The estimated market valuation of Albertsons is around $15 billion, though this fluctuates based on market conditions, mergers, and strategic initiatives.
Historical Revenue Growth and Year-over-Year Performance
- 2023: $77 billion (steady growth due to increased grocery demand and e-commerce expansion)
- 2022: $76 billion (inflationary pressures impacted margins, but sales remained strong)
- 2021: $71 billion (pandemic-related consumer spending boost)
- 2020: $69 billion (strong performance due to heightened grocery demand during COVID-19)
- 2019: $62 billion (pre-pandemic retail conditions)
Factors Influencing Financial Performance
- Grocery Demand Trends – Consumer spending on groceries remains strong, driving revenue growth.
- E-commerce and Online Delivery – Expansion in online grocery shopping and partnerships with platforms like Instacart contribute to revenue streams.
- Supply Chain and Inflation Impact – Rising operational costs and inflation impact profit margins, requiring strategic cost management.
Market Share and Competitors of Safeway
Safeway, as part of Albertsons Companies, holds an estimated 11% market share in the U.S. grocery sector, making it one of the largest players in the industry.
Competitors and Market Share Breakdown
Walmart
Walmart dominates the grocery industry with a 25% market share, leveraging its massive scale, low-pricing strategy, and extensive distribution network across the U.S.
Kroger
Kroger holds approximately 14% of the market, operating under various brand names and maintaining strong customer loyalty through personalized rewards programs and promotions.
Costco
Costco captures around 8% of the market, benefiting from its membership-based model, bulk pricing advantages, and loyal customer base.
Amazon (Whole Foods & Amazon Fresh)
Amazon continues to expand its grocery presence with an estimated 5% market share, particularly through Whole Foods and its growing Amazon Fresh operations.
Publix
Publix holds a 4% market share, with a strong presence in the Southeastern U.S. The company is known for its customer service, fresh produce, and employee ownership structure.
Ahold Delhaize (Food Lion, Stop & Shop, Giant Food, Hannaford)
Ahold Delhaize commands around 3% of the U.S. grocery market, operating well-established regional chains with a focus on fresh produce and digital grocery innovations.
Target
Target holds a 2.5% share in the grocery market, with its grocery section rapidly expanding through partnerships and private-label offerings like Good & Gather.
H-E-B
H-E-B, a dominant regional grocer in Texas, has a 2% market share and is known for its strong private-label brands and focus on fresh, local products.
Aldi & Lidl
These European discount grocery chains have expanded rapidly in the U.S., collectively holding around 2% market share and competing aggressively with low-cost, high-quality private-label products.
Brands Owned by Safeway (Under Albertsons Companies)
Safeway
The flagship brand, Safeway operates hundreds of stores across the U.S., offering a full range of grocery, fresh produce, and pharmacy services. It features private-label brands such as O Organics, Signature Select, and Lucerne.
Vons
A Southern California and Nevada-based supermarket chain known for its premium grocery selection, organic products, and extensive private-label offerings. Vons has a strong presence in urban and suburban markets.
Carrs
One of the leading grocery retailers in Alaska, Carrs provides a mix of national and local grocery products, catering to the specific needs of Alaskan consumers. It offers a full-service deli, bakery, and pharmacy.
Pavilions
An upscale grocery brand operating in California, Pavilions specializes in organic, gourmet, and specialty food selections. It differentiates itself with an extensive wine and cheese section and premium deli offerings.
Randalls and Tom Thumb
These Texas-based supermarket chains cater to local markets with a focus on fresh produce, pharmacy services, and regional specialties. Both brands emphasize customer service and loyalty programs.
Acme Markets
A leading grocery chain in the Northeast U.S., Acme Markets operates hundreds of stores and offers a strong mix of private-label brands, fresh bakery items, and organic selections.
Shaw’s and Star Market
Two prominent supermarket brands in New England, Shaw’s and Star Market provide regional grocery selections, including locally sourced products and organic options.
Jewel-Osco
A dominant grocery chain in the Midwest, Jewel-Osco combines a full-service supermarket with an in-house pharmacy, catering to urban and suburban communities.
Haggen
A Pacific Northwest-based grocery chain known for its focus on fresh, organic, and locally sourced products. Haggen has a strong emphasis on sustainability and environmentally friendly practices.
Albertsons
The parent company’s namesake brand, Albertsons operates stores across various U.S. regions, serving a broad customer base with an extensive range of groceries, pharmacy services, and private-label products.
Final Thoughts on Who Owns Safeway
Safeway, once an independent supermarket chain, is now a key brand within Albertsons Companies. Owned primarily by Cerberus Capital Management, Albertsons oversees Safeway’s operations while competing with major grocery retailers such as Walmart, Kroger, and Costco. With steady revenue growth, expanding online grocery services, and strong market positioning, Safeway remains a prominent name in the grocery sector.
FAQs
Who is the largest shareholder of Safeway?
Safeway is owned by Albertsons Companies, Inc., which is majority-controlled by Cerberus Capital Management.
What brands does Safeway own?
Safeway operates under the Albertsons umbrella and includes brands such as Vons, Carrs, Pavilions, Randalls, and Tom Thumb.
How much is Safeway worth?
As part of Albertsons, Safeway contributes to the company’s $77 billion in annual revenue, with Albertsons’ overall valuation estimated at $14 billion.