Exhibit 11.1

SAFEWAY INC. AND SUBSIDIARIES

Computation of Earnings Per Share

(In millions, except per-share amounts)

(Unaudited)

	12 Weeks Ended
	March 26, 2005			March 26, 2005		March 27, 2004			March 27, 2004
	Diluted			Basic		Diluted			Basic
Net income	$	131.3		$	131.3	$	43.1		$	43.1
Weighted average common shares outstanding		447.0			447.0		444.1			444.1
Common share equivalents		2.6					4.2
Weighted average shares outstanding		449.6					448.3
Earnings per share	$	0.29		$	0.29	$	0.10		$	0.10
Calculation of common share equivalents:
Options to purchase common shares		6.0					12.6
Common shares assumed purchased with potential proceeds		(3.4	)				(8.4	)
Common share equivalents		2.6					4.2
Calculation of common shares assumed purchased with potential proceeds:
Potential proceeds from exercise of options to purchase common shares	$	63.1				$	185.2
Common stock price used under the treasury stock method	$	18.60				$	22.13
Common shares assumed purchased with potential proceeds		3.4					8.4

Anti-dilutive shares totaling 21.6 million in 2005 and 24.7 million in 2004 have been excluded from diluted weighted average shares outstanding.