Safeway Q4 income increases 14%, topping estimates
Pleasanton, Calif. — Safeway Inc. said that its fourth-quarter net income rose 13% to $244 million, far ahead of expectations, helped by its customer loyalty program. Safeway said the program, which offers personalized discounts based on past purchases, is driving market share gains and profits.
Quarterly sales rose to $13.77 billion from $13.60 billion a year ago. Same-store sales, excluding fuel, inched up 0.8%.
In the chain’s quarterly conference call, CEO Steven Burd said that approximately 45% of the company’s sales are from members of its loyalty program. To date, the program is performing better than expectations, he added.
"Our best customers are becoming increasingly more loyal and buying more items per trip," Burd said.
The mobile component of the program, which includes apps for most smartphones and an iPad app, has had higher usage than expected, according to Burd. Digital coupons have also performed well he said.
For the year, Safeway’s net income rose 15% to $596.5 million. Revenue rose 1% to $44.21 billion.
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Grupo Gigante seeks to buy remaining stake of Office Depot’s Mexican unit
New York — Grupo Gigante wants buy the 50% stake in the Mexican unit of Office Depot that it does not already own.
The Mexican retailer on Thursday said it has offered 8.78 billion pesos ($687.34 million) to buy the stake, Reuters reported.
In March, Gigante entered into a joint venture with Petco Animal Supplies to open at least 50 stores in Mexico and other Latin American countries over seven years.
Lenovo laptop tops in efficiency
WASHINGTON — The Lenovo ThinkPad T430s topped TopTen USA’s list for energy-efficiency.
The nonprofit group, appaluded he fact that the laptopuses only 7.4 kilowatt hours of electricity in a year of typical use. The average comparable model uses 28 kWh per year—almost 4 times the energy. On average, TopTen-listed laptops use about half (48%) the energy of comparable models.
"Computers using minimal amounts of power can do everything their inefficient competition can do—and in many cases, they do it better," says Norman Dean , TopTen USA’s president. "So choosing an inefficient model is just pouring money down the drain and greenhouse gasses into the atmosphere."
Along with the Lenovo and multiple entries from Apple, including its popular Retina Display laptops, TopTen’s rankings included models from ASUS, HP, Dell, Samsung and others. And that gamer’s special? The MSi GX60. For more information, including complete methodology, visit toptenusa.org.
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