Segments

9 Months Ended

Sep. 06, 2014

Segment Reporting [Abstract]

Segments

SEGMENTS

Safeway’s retail business operates in the United States. Safeway is organized into seven geographic retail operating segments (Denver, Eastern, Northern California, Phoenix, Northwest, Texas and Southern California). Across all seven retail operating segments, the Company operates primarily one store format, where each store offers the same general mix of products with similar pricing to similar categories of customers. Safeway does not operate supercenters, warehouse formats, combination clothing/grocery stores or discount stores.

The seven operating segments have been aggregated into one reportable segment called Safeway, because, in the Company’s judgment, the operating segments have similar historical economic characteristics and are expected to have similar economic characteristics and similar long-term financial performance in the future. The principal measures and factors the Company considered in determining whether the economic characteristics are similar are gross margin percentage, operating profit margin, sales growth, capital expenditures, competitive risks, operational risks and challenges, retail store sales, costs of goods sold and employees. In addition, each operating segment has similar products, similar production processes, similar types of customers, similar methods of distribution and a similar regulatory environment. The Company believes that disaggregating its operating segments would not provide material or meaningful additional information.

The following table presents sales revenue by type of similar product (dollars in millions):

	12 Weeks Ended								36 Weeks Ended
	September 6, 2014				September 7, 2013				September 6, 2014				September 7, 2013
Non-perishables (1)	$	3,445.6	41.5	%	$	3,403.5	42.0	%	$	10,255.0	41.6	%	$	10,170.8	41.9	%
Perishables (2)	3,116.5		37.5		2,963.7		36.6		9,224.1		37.4		8,864.7		36.6
Fuel	980.2		11.8		990.2		12.3		2,868.6		11.6		2,974.1		12.3
Pharmacy	625.0		7.5		602.0		7.4		1,873.4		7.6		1,829.1		7.5
Other (3)	140.6		1.7		139.8		1.7		431.7		1.8		411.4		1.7
Total sales and other revenue	$	8,307.9	100.0	%	$	8,099.2	100.0	%	$	24,652.8	100.0	%	$	24,250.1	100.0	%

(1) Consists primarily of general merchandise, grocery, meal ingredients, soft drinks and other beverages, snacks and frozen foods.

(2) Consists primarily of produce, dairy, meat, bakery, deli, floral and seafood.

(3) Consists primarily of wholesale sales and other revenue.