Colorado

Dec 2, 2009 10:04 AM by Associated Press

Safeway cuts prices in effort to boost traffic

After months of watching customers switch to lower-priced products and head to discounters, Safeway Inc. is slashing prices on items from soap to cake mix in Colorado, Wyoming, New Mexico and Nebraska as part of a program that has cut prices companywide.

Safeway announced lower prices on basics like milk earlier this year. Denver Division President Scott Grimmett says the new cuts are for the long term.

Customers with Safeway Club Cards can get further discounts. Grimmett says the move should help drive traffic to stores. Under the cuts announced Tuesday, a 16-ounce bottle of Kraft Italian dressing that was $3.59 is now $2.29, a 36 percent drop.

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