Safeway confirms fall in market share
Search for new executive directors launched
December 23 2002
Supermarket operator Safeway has confirmed that it has lost market share in the run-up to Christmas.
The company pointed out that since rivals have opened more space while Safeway has focussed on refurbishing its existing stores, the fact that other operators were increasing market share was no surprise.
Responding to weekend newspaper reports which quoted Taylor Nelson Sofres market share data showing Safeway lost 0.3 per cent in market share in the four weeks to December 8, a spokesman told news agency Reuters: “If you bear in mind that over the last year or so, we have not opened very much new selling space at all by comparison with Tesco, Asda and Sainsbury. Obviously that feeds through to the market share figures.
“We’ve spent most of our cap-ex over the last two years on upgrading the existing stores. We’ve opened very few new stores and that’s the reason why we appear to have lost out on market share.”
The spokesman also confirmed a newspaper report that Safeway had appointed headhunting company Whitehead Mann Group to recruit executives to the board, but described the move as good forward planning and stressed that Safeway was not looking to replace Chief Executive Carlos Criado-Perez before his option package matures in 2005.
He said Safeway is looking for one or two new executive directors: “We can’t say that we’re going out looking specifically for a replacement for Carlos, but obviously, if we find somebody with that amount of potential to move into the role in two to three years’ time, then fine.”
The newspaper report named Tim Mason, e-commerce and marketing director of Tesco; Mark Price, sales and marketing director of Waitrose; and Sara Weller, assistant managing director of Sainsbury’s as potential recruits.
