The Safeway supermarket chain, headquartered in Pleasanton, California, has had its share of challenges in the mid-Atlantic region of the country. In a short, interesting Washington Post article, dubbed "The Lifestyles of the Prawns and Pistachios, comes a very tantalizing tidbit -- one that points to the future of food retailing here in the US.


According to the article, Safeway is in the midst of a six-year plan to convert 1,738 stores to a lifestyle format by 2010. The chain claims it has already reached a milestone and currently has converted 1000 stores to this new format.
Why a lifestyle look and feel? "We looked at the market and we were being squeezed," Safeway chief executive Steve Burd was quoted as saying in the article. "For us, it was really just a way to differentiate from everybody else."
The article also stated that adopting a lifestyle format would help Safeway to better compete against niche grocery chains, Whole Foods being mentioned by name. Upgrades include expanded deli, seafood and convenience foods departments, olive and nut bars. Softer lighting and wood laminate flooring. Some of the newest stores also feature amenities like gelato stations and hearth bakery ovens. All very upscale and all meant to challenge longtime grocery leader Giant Food in the Washington DC market.
Safeway's market share has slowly grown in the mid-Atlantic, but the chain has a long way to go to top Giant Food. Still, it's interesting to see this kind of transformation from the feel of a mainstream grocery chain to that of a specialty, gourmet or niche player.
This could provide many grocery operations that have not experienced strong sales growth to experiment with the lifestyle marketing of food as a blueprint for success with today and tomorrow's consumer. Of course, I'd like to see this new merchandising approach coupled with stellar customer service. Wouldn't you?
If Whole Foods and Wegman's have been successful, why can't they be? Are you familiar with other grocery chains that are doing a good job catering to consumers' lifestyles besides Whole Foods and Wegman's? I'd like to invite Daily Fix readers to share your thoughts and experiences with us.