Safeway Inc., the owner of Dominick's Finer Foods, announced today it's getting out of Chicago.
The parent of Oak Brook-based Dominick's said in a statement it "intends to exit the Chicago market . . . by early 2014."
A Dominick's employee who did not want to be identified, but who attended a meeting today called for local employees, said he and others were given a memo from Safeway. He said the memo told workers: "One small group of stores has been sold, with details to be announced shortly. We're working to identify buyers for the remainder of the operations."
Safeway had a scheduled earnings call for 4 p.m. Chicago time, at which it's expected to further discuss the exit.
Dominick's operates 72 stores, all of which are in Illinois within a 60-mile radius of Chicago. The chain, founded in Chicago in 1918, was purchased by Pleasanton, Calif.-based Safeway for $1.8 billion in 1998.
Supermarkets have been working to cut costs as they fight off competition from discount and dollar stores.
Safeway also reported sharply lower third-quarter earnings today. It says net income fell 58 percent, hurt by a software impairment charge, higher theft and lower property gains.
Net income of $85.8 million, or 27 cents per share, compares with $157 million, or 66 cents per share, in the prior-year quarter. Excluding a software impairment charge, net income was 30 cents per share. Analysts expected net income of 16 cents per share. Revenue rose 1 percent to $8.62 billion. Analysts expected revenue of $8.52 billion.
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