The owner of Dominick’s Finer Foods announced Thursday the company plans to leave Chicago by early next year.
Safeway Inc., which operates 72 Dominick’s stores in the Chicago market, said in its Third Quarter 2013 report the move comes after poor performance from locations in the area.
Dominick’s incurred losses before income taxes of $13.7 million in the third quarter of 2013 and $35.2 million in the first 36 weeks of 2013, the company said.
The company said in a statement that exiting the market will result in a cash tax benefit of $400 million to $450 million. Safeway plans to use that money, plus proceeds from the disposal of Dominick’s properties, to “buy back stock and invest in growth opportunities.”
“The decision to sell Canada Safeway and to exit the Chicago market is consistent with Safeway’s priority of maximizing shareholder value,” President and CEO Robert Edwards said. “These actions will allow us to focus on improving and strengthening our core grocery business.”
It’s not clear when the Chicago stores will close. Safeway said it wants to exit the market by early 2014.