Citi Comments On Day 2 Of Safeway's Investor Conference

In a report published Citi, Safeway Inc.'s SWY ID sales guidance of 1% to 1.5% could prove conservative as it appears to be approximately at par with the company's 1.0% inflation outlook.

Citi said that the conservative outlook is not typical of the company. “We expect SWY to drive additional sales as it continues to roll out new revenue driving initiatives, including: 1) the “Just For U” online platform; and 2) innovative, new corporate brand offerings. In addition, the company is continuing to improve its shrink efforts and invest more heavily in technology, which should improve cost efficiency. However, we remain cautious until we see consistent results from SWY's new initiatives. We reiterate our Sell (3H) rating.”

Safeway closed yesterday at $21.15.