Safeway has announced the impending closure of its grocery store located at 231 Jackson St. in Hayward, California, due to the expiration of its lease. The store is set to shut down in late February 2024, marking a significant change for the local community. A company spokesperson indicated that this decision was made with careful consideration, stating, “We have been proud to serve the Jackson Triangle neighborhood over the years, and this decision was not made lightly,” as reported by KRON4 News.
Despite the closure, Safeway remains committed to the Hayward area, planning to continue operations at its nearby Foothill Boulevard store. This location will feature additional amenities to serve the community better. The transition will affect 76 employees currently working at the Jackson Street store. According to an official WARN letter sent to the state’s Employment Development Department, Safeway confirmed there will be no layoffs as a result of the closure.
Terra Powers, a vice president of human resources at Safeway, assured employees in the WARN letter that the company intends to relocate all affected associates to other store locations within the area. The company is adhering to collective bargaining agreements with the United Food and Commercial Workers Local 5 and Baker’s Union Local 125, which provide support for workers during this transition. However, the specifics of these relocations have yet to be finalized, leading to some uncertainty regarding how Safeway determines what constitutes a “nearby” location for affected employees.
The potential impact of seniority-based bumping rights held by the displaced workers raises questions about the job security of others within the company. While Safeway has committed to supporting all employees, the exact details of the relocation process remain unclear. Powers emphasized the company’s commitment, stating, “We intend to place all the associates into a position at another nearby location.”
The closure of the Jackson Street store is primarily a strategic business decision linked to the end of the lease term rather than a reflection of Safeway’s financial health. The company’s recent profit report indicated a rise to $168.5 million on revenues of $18.92 billion, showcasing a robust performance despite the closure.
As Safeway navigates this transition, the focus remains on ensuring that all employees receive support and opportunities at alternative locations. This move reflects a broader trend in the Bay Area, where retail dynamics are continually evolving, impacting both companies and communities alike.
