Reynolds' Rich Diet

Nearly half a century ago, Quentin Reynolds (no kin to the late writer) was a fruit clerk in an Oakland grocery store, and Safeway Stores was a small California supermarket chain. Since then, both have had more than the normal diet of success. Early last year the powerfully built and congenial Reynolds, 66, was named chairman of Safeway, which has no mandatory retirement rule for that job. Now, for the first time, Safeway is the world's largest food retailer. Last week the chain reported sales of $5,511,000,000, just squeaking by A. & P.'s $5,508,000,000.

Safeway has wisely anticipated consumer trends and been in the right place at the right time. Except for an operation in the Washington, D.C. area, its markets are in the rapidly growing Western states. By comparison, A. & P. has most of its stores in the East, and many are in cramped, deteriorating city neighborhoods. The average A. & P. store rings up $25,000 in sales a week v. Safeway's $45,000. Safeway also was one of the first chains to switch to discounting in the mid-'60s. By eliminating trading stamps, games and other frills, Reynolds and his colleagues have been able to trim food prices without narrowing their own profit margins. Now that health foods are popular, many Safeway stores have a special section that sells such delights as organic apple juice and Crunchy Granola.

Reynolds intends to accelerate Safeway's expansion abroad. "We plan to double our European outlets by 1975," he says. Already Safeway has 48 supermarkets in Great Britain, 14 in West Germany, 36 in Australia. Reynolds can afford to spend millions on building new stores. In 1972's first quarter, profits were up 25 %, to $18 million.

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