Is this century-old grocery store chain facing difficulties in remaining open?

After more than a century in business, Safeway, once a trusted choice for suburban shoppers, is now confronting significant challenges. Known for pioneering innovations in the supermarket industry, the chain is struggling to maintain its presence in the market. Like other grocery retailers, Safeway has weathered economic downturns, inflation, the pandemic, and evolving consumer preferences.

Throughout 2024 and continuing into 2025, Safeway has been closing underperforming stores nationwide. Long-established locations in many cities have disappeared. In September 2025 alone, 10 stores in Colorado, along with two each in Nevada and New Mexico, were shut down due to low performance. In San Francisco, two Safeway stores are being transformed into residential developments.

Safeways parent company, Albertsons, acquired the chain in 2015. Earlier this year, a major merger between Albertsons and Kroger, which could have affected grocery prices, fell through, prompting Albertsons to pursue legal action over alleged damages. During this period, Safeway and Albertsons also experienced worker strikes, making 2025 a particularly difficult year for the brand.

Online communities reflect growing customer dissatisfaction. On Reddit, many longtime shoppers vent frustrations about understaffed stores, early closures, and safety concerns. For example, users report that in Spokane, Washington, only one cashier is often available, and the deli shuts down early, while petty theft has become a common issue.

Price complaints are frequent. Safeway often charges more for basic items than discount chains like Walmart or Aldi, yet does not provide the premium experience offered by stores like Whole Foods or Trader Joes. Unlike these competitors, which are praised for unique products, quality, and enjoyable shopping experiences, Safeway stores are often described as outdated, with old designs, harsh lighting, and disorganized shelves.

Overall, Safeways reputation as a reliable, middle-class grocery option is fading. Many locations feel stuck in the past, and the chain struggles to keep customers engaged amid modern alternatives.

Analysis: Safeway's Struggles and the Road Ahead

After over a century of service, Safeway's battle to remain relevant in the competitive grocery market has intensified. Once a staple for suburban shoppers, the chain's failure to adapt to changing market dynamics and evolving consumer demands has led to a steady decline. The chain’s current situation reflects broader challenges within the retail grocery sector, as businesses attempt to recover from economic disruptions like inflation and the pandemic.

The closures of underperforming stores, including the 10 locations in Colorado and others in Nevada and New Mexico, are telling indicators of Safeway's inability to sustain its once-strong presence. The shift of two stores in San Francisco into residential properties further underscores how far the brand has fallen from its heyday. These closures, though necessary for cost-saving, also illustrate a deeper issue: a loss of connection with customers who are increasingly seeking more modern and value-oriented shopping experiences.

Despite being acquired by Albertsons in 2015, Safeway has struggled to align itself with the innovations brought about by its parent company, particularly after the failed merger with Kroger. The subsequent legal battles and labor unrest have only added to the difficulties faced by Safeway, which now finds itself lagging behind competitors like Walmart, Aldi, and even high-end brands like Whole Foods and Trader Joe's. While discount chains attract budget-conscious consumers and premium stores offer a unique shopping experience, Safeway is caught between these two worlds, offering neither the affordability of its rivals nor the premium appeal of its high-end competitors.

Customer dissatisfaction is another pressing issue. Online feedback points to understaffed stores, limited product availability, and concerns over store safety. In cities like Spokane, these problems are especially pronounced, with customers describing frustrating experiences of long waits and early closures. These operational inefficiencies have taken a toll on Safeway’s reputation, leaving customers with little reason to return or recommend the brand.

The way forward for Safeway will require a fundamental transformation. To regain consumer trust and market share, the chain must rethink its approach to both store operations and product offerings. Without a clear and innovative strategy, Safeway’s days as a trusted grocery retailer may be numbered.

Sources:

• Is This 110-Year-Old Grocery Store Chain Struggling To Stay Open?