-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 VNq4bfU407YqjVoWubgJBlhzoTVwUNgIg/cQSArsbhorU9UdH60TshjNB1DDzJ0Z
 w5StmjlkQdtnHdYtAt2etg==

<SEC-DOCUMENT>0001181431-04-001028.txt : 20040105
<SEC-HEADER>0001181431-04-001028.hdr.sgml : 20040105
<ACCEPTANCE-DATETIME>20040105193033
ACCESSION NUMBER:		0001181431-04-001028
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20031231
FILED AS OF DATE:		20040105

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			MACDONNELL ROBERT I
		CENTRAL INDEX KEY:			0001207902

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-00041
		FILM NUMBER:		04507256

	BUSINESS ADDRESS:	
		STREET 1:		C/O KKR & CO
		STREET 2:		9 WEST 57TH STREET 41ST FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10019
		BUSINESS PHONE:		2127508300

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SAFEWAY INC
		CENTRAL INDEX KEY:			0000086144
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-GROCERY STORES [5411]
		IRS NUMBER:				943019135
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1228

	BUSINESS ADDRESS:	
		STREET 1:		5918 STONERIDGE MALL RD
		CITY:			PLEASANTON
		STATE:			CA
		ZIP:			94588
		BUSINESS PHONE:		9254673000

	MAIL ADDRESS:	
		STREET 1:		5918 STONERIDGE MALL ROAD
		CITY:			PLEASANTON
		STATE:			CA
		ZIP:			94588

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	SAFEWAY STORES INC
		DATE OF NAME CHANGE:	19900226
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>rrd27926.xml
<TEXT>
<XML>
<?xml version="1.0"?><ownershipDocument>
    <schemaVersion>X0201</schemaVersion>

    <documentType>4</documentType><periodOfReport>2003-12-31</periodOfReport><notSubjectToSection16>0</notSubjectToSection16>
    <issuer>
        <issuerCik>0000086144</issuerCik>
        <issuerName>SAFEWAY INC</issuerName>
        <issuerTradingSymbol>SWY</issuerTradingSymbol></issuer><reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001207902</rptOwnerCik>
            <rptOwnerName>MACDONNELL ROBERT I</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>KOHLBERG KRAVIS ROBERTS &amp; CO.</rptOwnerStreet1>
            <rptOwnerStreet2>2800 SAND HILL ROAD, SUITE 200</rptOwnerStreet2>
            <rptOwnerCity>MENLO PARK</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>94025</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
            <reportingOwnerRelationship>
<isDirector>1</isDirector><isOfficer>0</isOfficer><isTenPercentOwner>0</isTenPercentOwner><isOther>0</isOther></reportingOwnerRelationship></reportingOwner><derivativeTable><derivativeTransaction><securityTitle><value>Phantom Stock Units</value></securityTitle><conversionOrExercisePrice><footnoteId id="F1"/></conversionOrExercisePrice><transactionDate><value>2003-12-31</value></transactionDate><transactionCoding><transactionFormType>4</transactionFormType><transactionCode>A</transactionCode><equitySwapInvolved>0</equitySwapInvolved></transactionCoding><transactionAmounts><transactionShares><value>487.4783</value></transactionShares><transactionPricePerShare><value>20.5137</value></transactionPricePerShare><transactionAcquiredDisposedCode><value>A</value></transactionAcquiredDisposedCode></transactionAmounts><exerciseDate><footnoteId id="F1"/></exerciseDate><expirationDate><footnoteId id="F1"/></expirationDate><underlyingSecurity><underlyingSecurityTitle><value>Common Stock</value></underlyingSecurityTitle><u
nderlyingSecurityShares><value>487.4783</value></underlyingSecurityShares></underlyingSecurity><postTransactionAmounts><sharesOwnedFollowingTransaction><value>14736.0638</value></sharesOwnedFollowingTransaction></postTransactionAmounts><ownershipNature><directOrIndirectOwnership><value>D</value></directOrIndirectOwnership></ownershipNature></derivativeTransaction></derivativeTable><footnotes><footnote id="F1">The phantom stock units were accrued under the Safeway Inc. Directors Deferred Compensation Plan and are to be settled in cash on a 1-for-1 basis upon the reporting person's retirement.</footnote></footnotes><ownerSignature><signatureName>Linda C. Sayler, Attorney-in-Fact</signatureName><signatureDate>2004-01-05</signatureDate></ownerSignature></ownershipDocument>



</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----