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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
 Gf9BowOjf6fRs/GQxXJ6qiS1wx4arPe2a+vm4fESWLy2Bbzk2m3uhdKxdrbjALzj
 k2mpOci7/3aS6zYowVwaJg==

<SEC-DOCUMENT>0001181431-05-038598.txt : 20050705
<SEC-HEADER>0001181431-05-038598.hdr.sgml : 20050704
<ACCEPTANCE-DATETIME>20050705183439
ACCESSION NUMBER:		0001181431-05-038598
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20050630
FILED AS OF DATE:		20050705
DATE AS OF CHANGE:		20050705

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			TAUSCHER WILLIAM Y
		CENTRAL INDEX KEY:			0001034052
		STATE OF INCORPORATION:			CA
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-00041
		FILM NUMBER:		05938517

	BUSINESS ADDRESS:	
		STREET 1:		5964 W LAS POSITAS BLVD
		CITY:			PLEASANTON
		STATE:			CA
		ZIP:			94588
		BUSINESS PHONE:		5107344000

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>rrd84598.xml
<DESCRIPTION>FORM 4
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2005-06-30</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000086144</issuerCik>
        <issuerName>SAFEWAY INC</issuerName>
        <issuerTradingSymbol>SWY</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001034052</rptOwnerCik>
            <rptOwnerName>TAUSCHER WILLIAM Y</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1></rptOwnerStreet1>
            <rptOwnerStreet2>9495 MACARTHUR BOULEVARD</rptOwnerStreet2>
            <rptOwnerCity>BETHESDA</rptOwnerCity>
            <rptOwnerState>MD</rptOwnerState>
            <rptOwnerZipCode>20817</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>2005-06-30</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>839.6533</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>23.0750</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>
                <underlyingSecurityShares>
                    <value>839.6533</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>7334.8861</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>/s/ Linda C. Sayler, Attorney-in-Fact</signatureName>
        <signatureDate>2005-07-05</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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