Safeway To Revamp, Build Stores Around Bay Area

PLEASANTON (CBS SF) - Safeway is getting ready to make over or build 13 supermarkets in the San Francisco Bay Area amid growing competition from other chains.

Pleasanton-based Safeway executives said it's their largest store replacement and reconstruction effort in years.

The plan is to make over some aging Safeways and take over leases in some new locations. The company is moving into three former Mervyn's department stores at shopping centers in Pleasant Hill, Campbell and Petaluma.

The company owns a total of 158 stores in the Bay Area. Its new push comes as grocery retailers such as Fresh & Easy and Whole Foods have opened new outlets, and other chains such as Walgreen's and Target begin offering groceries in existing stores.

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