COMMENT OF THE DAY: SAFEWAY’S PLANS FOR A LEANER RANDALLS OPERATION 
“I’m not buying the ‘pulling out of Houston’ claim. Other chains are debasing themselves to get into the Houston/DFW/Austin markets. Why would an incumbent, distressed or not, just completely pull out? Doesn’t pass logical test, IMO. Reducing cost by eliminating regional management and failing to renew a lease aren’t the same thing as a wholesale abandonment of Houston.” [Tom Opposable Thumb, commenting on Yet Another Sign of a Coming Randalls Houston Pullout] Illustration: Lulu
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Safeway has a proven track record of failure in Houston. You are right that it does not make logical sense for Safeway to fail yet, they are well on down the road for such.
Well Safeway never competes on quality, selection, or price in a competitive market. Its bread and butter are older cities where it is the only mid tier competitor. It likes older cities with lots of zoning and land use restrictions to keep out competition or smaller towns, also to keep out competition.
To add to what Roy says, Randall’s also tried to stake out the premium upper end part of the local market. They owned that space through the ’80’s and ’90’s. But Central Market and Whole Foods came in and took over that niche from them. Randall’s didn’t fight to keep it. But they still have a perception of higher prices. But the people who want the “premium” grocery experience don’t shop at Randall’s anymore.