Safeway Acquires Andronico's
Safeway has entered an agreement with San Francisco-based Andronico’s Community Markets to purchase the five Andronico’s stores, all in the San Francisco Bay Area.
The deal goes back to earlier this year, when Dallas-based private equity firm Renovo Capital, which acquired Andronico’s out of bankruptcy in 2011, approached Pleasanton, Calif.-based Safeway about purchasing the Andronico’s stores in Berkeley, Los Altos, San Anselmo and San Francisco, with the goal of preserving union jobs and keeping the stores operating in the same friendly, local way their customers have come to expect.
The two grocers are working together to ensure a smooth transition for employees and customers alike. Andronico’s employees will continue working in their current assignments with their same union pay rates and benefits. A successful transition will create the potential for more jobs in the future.
“Andronico’s Community Markets have developed a well-respected brand and loyal customer base, and we are committed to keeping the local heritage alive,” said Tom Schwilke, president of Safeway Northern California. “Our goal is to preserve everything great about Andronico’s while adding Safeway’s innovations and great Own Brands products, including O Organics.”
Safeway plans to close each store for a short period of time when the transaction closes in December. Once reopened, the new stores will offer customers new everyday low prices, as well as further expand local, fresh and organic options.
The news comes on the heels of Safeway's acquisition of G&G Market, which operated two stores in California's Sonoma County: one in Petaluma, and another in Santa Rosa.
Pleasanton, Calif.-based Safeway is a banner of Boise, Idaho-based Albertsons Cos. Inc., which operates stores across 35 states and Washington, D.C. In addition to Safeway, the company operates the Albertsons, Vons, Jewel-Osco, Shaw’s, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market and Carrs banners.