Walgreen Settles Claim
Deerfield, Ill., Walgreen Co. agreed to pay $1.3 million to settle claims that it failed to monitor how it sold over-the-counter cold medicine, which can be used to make methamphetamine. Walgreen did not admit to any wrongdoing. The company also agreed to spend $1 million to monitor purchases of this medicine.
Safeway’s Sales Increase
Pleasanton, Calif., Safeway saw its comparable-store sales increase 3.3% and its identical-store sales increase 2.8% for the second quarter of 2005. The company’s total sales increased 4.7% to $8.8 billion for the second quarter of 2005. Last year, Safeway’s total sales were $8.4 billion for the second quarter.
Safeway believes the increase is due to its marketing strategies and recovery from the strike in Southern California last year. Steve Burd, chairman, president and CEO of Safeway, said, “Our strategy to differentiate our offering has resulted in broad-based sales improvement.”
Net income for Safeway, however, decreased for the second quarter. This year’s income was $134 million while last year’s was $155.2 million.
Food Lion Hires Ex-Kroger Exec
Salisbury, N.C., Food Lion hired Derrick Penick, a former merchandiser for Kroger, as senior VP of fresh merchandising and distribution. He replaces Cathy Green, who is now senior VP of retail operations.
Penick was most recently VP of merchandising at Kroger’s King Soopers division in Denver. Before that position, he had several other posts with Kroger including group VP of perishables, VP of merchandising, meat director and store manager.