PLEASANTON -- Safeway shareholders on Friday approved the company's $9.2 billion sale to Albertsons, a deal that comes amid fierce competition for the combined supermarket chains from a host of foes.
The combined Safeway and Albertsons supermarket chain will be slightly smaller than Kroger, the largest grocery retailer in the U.S., which has 2,600 stores.
Several Safeway executives will enjoy big paydays as a result of the transaction, according to proxy materials distributed for the meeting.
CEO Robert Edwards will receive $25.3 million in merger-related compensation, as well as a $4 million severance package, and former CEO Steven Burd will receive $7.5 million in stock.
It's unclear how the merger will impact Safeway's popular loyalty card program, which provides discounts to repeat customers.
"The loyalty card program is a cornerstone in how Safeway presents itself in the Bay Area," Reynold said. "Safeway's overall pricing strategy is very dependent on the loyalty cards."
The combined Safeway and Albertsons will face stiff competition.
"Wal-Mart and others will continue to push into the market," Livingston said. One shareholder who attended the meeting, James Patterson of San Francisco, said he hopes the new supermarket company will lean heavily toward the Safeway model for how the stores will operate.
"The Albertsons stores that I have visited in Southern California are very small, cluttered and claustrophobic," Patterson said after the meeting. "The Safeway stores are a very good shopping experience. They are open and very inviting."
Contact George Avalos at 408-859-5167. Follow him at Twitter.com/georgeavalos.
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