Page 4: Organisational change
Equally important, the basic processes and structures of the business were redesigned and simplified to help Safeway people implement these changes and get new ideas to the market place as quickly as possible. These changes included the structure and organisation of all Safeway stores as well as its central services. These changes in roles and structures resulted in 3,500 redundancies or early retirements but also opened up new or substantially different roles for 9,000 people and promotion for a further 3,000.
Safeway’s declared aim, announced in 1995, was to increase average sales per square foot from £12.86 to £15.00 within 3 years. Safeway achieved that target, one year ahead of schedule. Equally important, Safeway’s market share has increased, - an improvement which has been broadly based, covering the entire store portfolio and across all product ranges. Total sales in 1996/97 grew by 10% to stand at £6.627 bn. Progress in delivering the customer offer during 1996/97 can be summarised as follows:
- The proportion of target customers who did their main shopping with Safeway grew from 17.1% in 1995/96 to 17.8%. The proportion of sales which these shoppers, spending over £40, represents grew from 23.6% to 25%.
- Value perception improved significantly with around half of Safeways’ customers buying at least one ‘Savers’ product.
- Safeway’s own-brand range of Vecta household cleaners gained a 25% market share and Oracle mouth care products a 20% share of their respective markets in Safeway. The Company also launched a range of kids’ toys and an innovative range of produce for children. Over the year as a whole, Safeway launched or upgraded around 3,200 product lines.