Look out For Insider Trading Among Safeway Executives
There was heavy insider trading activity from officials at Safeway Inc. (NYSE:SWY) on Thursday, which came as the company reported second-quarter profits that were down 16 percent and the company's stock was down as low as 5 percent.
According to The Associated Press, the grocery store operator said the lower income was due to higher spending on advertising, and that it has started a new loyalty program to keep an edge against its competitors. The program resulted in several expenses, which offset a small increase in sales in the quarter.
The program, called "just for U," gives customers deals based on earlier purchases.
"We can see what business we’re losing and we can look at the competitor and see what might be attracting them," said CEO Steve Burd, adding that By the end of 2012, he believes that 35 percent of all Safeway customers will take part in the program.
According to The Wall Street Journal, Safeway's problems outline a bigger trend among many grocers, in which higher prices are making it difficult to keep food on their shelves.
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