Safeway 3Q Sales, Profits Rise

Pleasanton, Calif. Safeway on Tuesday posted a rise in third-quarter sales and profits, which it attributed to increased gas sales and positive movement in its lifestyle-store format.

The chain reported a third-quarter profit increase of nearly 3.0% to $199.7 million, from $194.6 million last year.

Sales rose nearly 4.0% to $10.17 billion from $9.78 billion. Analysts polled by Thomson Reuters expected sales of $10.08 billion.

Safeway said it plans to continue cutting costs and expects 2008 profit to at least match Wall Street expectations.