Exhibit 11.1

SAFEWAY INC. AND SUBSIDIARIES

Computation of Earnings Per Share

(In millions, except per-share amounts)

(Unaudited)

	12 Weeks Ended
	March 27 2004			March 27 2004		March 22, 2003			March 22, 2003
	Diluted			Basic		Diluted			Basic
Net income	$	43.1		$	43.1	$	162.6		$	162.6
Weighted average common shares outstanding		444.1			444.1		441.2			441.2
Common share equivalents		4.2					4.8
Weighted average shares outstanding		448.3					446.0
Earnings per share	$	0.10		$	0.10	$	0.36		$	0.37
Calculation of common share equivalents:
Options to purchase common shares		12.6					11.4
Common shares assumed purchased with potential proceeds		(8.4	)				(6.6	)
Common share equivalents		4.2					4.8
Calculation of common shares assumed purchased with potential proceeds:
Potential proceeds from exercise of options to purchase common shares	$	185.2				$	142.7
Common stock price used under the treasury stock method	$	22.13				$	21.73
Common shares assumed purchased with potential proceeds		8.4					6.6

Anti-dilutive shares totaling 24.7 million in 2004 and 26.9 million in 2003 have been excluded from diluted weighted average shares outstanding.