AB Acquisition LLC (Albertsons) and Safeway Inc. (NYSE: SWY) have announced the new senior leadership team and division leaders  for the combined company that will take effect upon the closing of the proposed merger transaction, which is pending customary regulatory approvals.

“We’re drawing on the strong talent within both companies to build an innovative, customer-focused and growth-driven company,” said Safeway President and Chief Executive Officer, Robert Edwards, who will serve as the combined company’s president and CEO.  “We are confident in this team’s ability to build a great company that’s positioned to win over the long term by earning the loyalty of grocery shoppers in every market we serve and delivering superior operational and financial results.”

After regulatory approval and closing of the transaction, the new company will have the following leadership team:

• Bob Gordon, Executive Vice President & General Counsel
• Shane Sampson, Executive Vice President, Marketing & Merchandising
• Andy Scoggin, Executive Vice President, Human Resources, Labor Relations, Public Affairs & Government Affairs
• Jerry Tidwell, Executive Vice President, Supply Chain & Manufacturing
• Lee Wilson, Executive Vice President & Chief Administrative Officer
• Bob Dimond, Executive Vice President & Chief Financial Officer, reporting to Mr. Wilson
• Justin Ewing, Executive Vice President, Corporate Development & Real Estate, reporting to Mr. Wilson
• Barry Libenson, Interim Executive Vice President & Chief Information Officer, reporting to Mr. Wilson.  Mr. Libenson is expected to be with the new company through March 2015, at which time a successor will be named.
• Wayne Denningham, Executive Vice President & Chief Operating Officer, South Region
• Justin Dye, Executive Vice President & Chief Operating Officer, East Region
• Kelly Griffith, Executive Vice President & Chief Operating Officer, North Region

The new company will be comprised of three regions and 14 retail divisions. The company will keep the focus and financial responsibility at the division level, but take full advantage of the expertise, vision and core capabilities of the corporate team.  The 14 divisions will be supported by corporate offices in Boise, ID, Pleasanton, CA, and Phoenix, AZ.

The division presidents for the new company, who will report to the chief operating officer for their respective regions, will be:

• Dennis Bassler, Portland Division, North Region
• Paul McTavish, Denver Division, North Region
• Susan Morris, Intermountain Division, North Region
• Tom Schwilke, Northern California Division, North Region
• Dan Valenzuela, Seattle Division, North Region
• Shane Dorcheus, Southwest Division, South Region
• Scott Hays, Southern Division, South Region
• Sidney Hopper, Houston Division, South Region
• Lori Raya, Southern California Division, South Region
• Robert Taylor, United Division, South Region
• Steve Burnham, Eastern Division, East Region
• Jim Perkins, Acme Division, East Region
• Jim Rice, Shaw’s Division, East Region
• Mike Withers, Jewel-Osco Division, East Region

No banner changes are planned.

“We know the best way to grow our business is to have the highest quality fresh departments, lower prices, clean, well-stocked stores and the best customer service in the market,” said Bob Miller, Albertsons current CEO, who will become Executive Chairman of the combined company upon completion of the transaction.  “Our teams will focus on delivering what customers want locally, and we will give our store teams more flexibility to make decisions that are right for their neighborhoods.  The division teams will have the responsibility to have the right assortment for their markets.”

Safeway shareholders approved the proposed merger agreement on July 25, under which AB Acquisition LLC, an affiliate of Albertsons, will acquire all outstanding shares of Safeway.  The transaction is under review by the Federal Trade Commission and is expected to close in the fourth quarter of this year, pending FTC approval.

The Dow Jones industrial average rose 34.95 points to close at 15,529.73 Tuesday. The S&P 500 rose 7.16 points to close at 1,704.76. The NASDAQ composite rose 27.85 points to 3,745.70.

Friskies’ new ‘Spokescat Grumpy Cat’ is from Phoenix

The frown-faced Internet sensation known as Grumpy Cat, real name Tardar Sauce, is now the “spokescat” for a Friskies brand of cat food, Nestle Purina PetCare announced Tuesday. The St. Louis-based company didn’t release terms of the deal. Grumpy Cat’s own Facebook page has more than 1.3 million likes. The dour animal also has more than 111,000 Twitter followers. In addition to the relationship with Nestle Purina, which featured Grumpy Cat in an online video game series in March, the 1 1/2-year-old mixed-breed feline has a merchandise line and reportedly has a movie deal in the works.“She’s very busy,” Friskies spokeswoman Julie Catron said. “The first thing she’ll do for us is receive the lifetime achievement award.” And Catron isn’t kidding. The feline will receive the award Oct. 15 in New York as Friskies honors the best cat videos of the year as chosen through an online vote. Grumpy Cat is owned by Tabatha Bundesen, who lives in Phoenix. For more information click here.

US builder confidence steady, watching rates
LOS ANGELES — U.S. homebuilders’ confidence in the housing market held this month at its highest level in nearly eight years. But builders are starting to worry that sales may slow if mortgage rates continue to rise. The National Association of Home Builders (NABH) builder sentiment index released Tuesday registered at 58 this month. That’s unchanged from August, which was revised down from an initial reading of 59. Readings above 50 indicate more builders view sales conditions as good, rather than poor. In the latest survey, which included 264 respondents, a measure of current sales conditions was unchanged, while a gauge of traffic by prospective buyers rose one point. But builders’ outlook for single-family home sales over the next six months fell three points. For full report click here

Safeway Adopts Poison Pill to Avert Takeover
New York – Tuesday Safeway adopted a plan to prevent a hostile takeover after learning of a significant accumulation of its stock by an investor. The announcement sent shares of the grocer up 8% to a five-year high. The “poison pill” plan allows existing shareholders to acquire more stock at a discounted rate to discourage a takeover by an outside entity. In a filing with the Securities and Exchange Commission late Tuesday, Jana Partners, a New York-based activist investor disclosed that it had amassed a 6.2% ownership in Safeway’s outstanding shares.
Click here for full report.

CPI rose just 0.1%. in August
WASHINGTON – The Labor Department’s CPI Report Tuesday reported U.S consumer prices barely rose last month, the latest sign that slow economic growth is keeping inflation tame. The consumer price index increased just 0.1% in August, after a 0.2% increase in July. Excluding food and energy costs, core prices also rose just 0.1%. In the past 12 months, prices have risen 1.5%. That’s down from the 2% year-over-year gain in July and below the Federal Reserve’s 2% inflation target. Core prices are 1.8% higher than a year ago, the largest 12-month gain since March. The increase in core prices could help persuade the Fed to start pulling back on its low interest rate policies. But significantly lower inflation would pressure the Fed to keep stimulating the economy. The Federal Reserve will be meeting today to discuss.  Today might be the day the Fed starts pulling back stimulus. Click Here for full report.

Poverty stuck at 15% — record 46.5 million
WASHINGTON — The U.S. Census Bureau reported Tuesday, the nation’s poverty rate remained stuck at 15 per cent last year despite America’s slowly reviving economy, a discouraging lack of improvement for the record 46.5 million poor and an unwelcome benchmark for President Barack Obama’s recovery plans. More than 1 in 7 Americans were living in poverty, not statistically different from the 46.2 million of 2011 and the sixth straight year the rate had failed to improve,. Median income for the nation’s households was $51,017, also unchanged from the previous year after two consecutive annual declines, while the share of people without health insurance did improve but only a bit, from 15.7 per cent to 15.4 per cent.  Click here for full report.

Slower holiday store traffic predicted for 2013
CHICAGO — According to Chicago-based research firm ShopperTrak, coming off of a weak back-to-school shopping period, the research firm said Tuesday that it expects retail sales will increase this holiday season, but retailers will have to work to earn their share. When compared to the same period last year, retail sales are forecast to rise 2.4% during the holiday season of November and December. However, shoppers are expected to visit fewer stores and do more research online. ShopperTrak, the leading provider of shopper analytics, anticipates that while sales will rise, total retail store traffic will decrease slightly compared to last year. Click here for full report.