Acquisition By Woolworths
In 1985 Australia's second largest supermarket operator, Woolworths Limited, successfully acquired the Safeway, Inc., Australian interests. In the agreement, Woolworths Limited acquired all of the Safeway stores and the naming rights in exchange for a 19.99% interest in Woolworths Limited (which has since been sold). This transaction pushed the group’s grocery market share above Coles, giving Woolworths Limited the title of Australia’s largest supermarket operator (which it still holds to this day).
The Safeway stores in New South Wales and Queensland were renamed as Woolworths Supermarkets. However, the Safeway stores in Victoria retained their name, and all Victorian Woolworths stores were transferred to the Safeway banner. Mr. J.W.R. Pratt, the Chairman and Managing Director of Australian Safeway Stores and Mr. P.A. Magowan, the Chairman and Chief Executive Officer of Safeway Stores Inc (USA) were also appointed to the Woolworths Board of Directors.
In 1987, Woolworths and Safeway Supermarkets launched “The Fresh Food People” campaign, adopting a uniform company logo and marketing strategy.
Read more about this topic: Safeway (Australia)
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