Safeway ends gas promotion after losing Dixon case - Morgan Hill Times: Articles From Gilroy

Safeway ends gas promotion after losing Dixon case

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Posted: Wednesday, August 8, 2012 3:21 pm

Safeway Inc. has ended a discount promotion at its gas stations nationwide, apparently in response to a legal dispute over a single station in Dixon.

The decision came four months after a judge ordered Safeway to stop selling fuel below cost at its Dixon gas station. California law forbids companies from selling below cost to drive out competitors.

One of Safeway's rivals, a station called Dixon Gas Club, sued the big grocery chain. A judge in May slapped Safeway with a preliminary injunction.

Dixon Gas Club's lawyer, Jim Dombroski, said today that Safeway told him it was discontinuing the program nationwide. He believes the discounts were ended because of the Dixon lawsuit.

"We consider it to be a result of our case," he said.

He said Safeway was offering discounts of 3 cents a gallon, and sometimes more, to Club Card members at its Dixon station. His client, located about a mile away, was losing a lot of business, particularly truck drivers.

Safeway spokesman Keith Turner called the decision "coincidental" and added that Safeway will continue to offer discounts to Club Card members. A new program being rolled out offers discounts of up to $1 a gallon.

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  • Michawn posted at 11:33 am on Fri, Aug 10, 2012.

    Michawn Posts: 5

    @Pissed off, you don't loose your earned discounts from the store, you just loose the automatic 3 cent discount. That being said, I rarely use Safeway's "discount" I am a thrifty shopper, using coupons and ads together to save at least 45% on my bill, for a family of 3 I rarely make the $100 mark each month at Safeway (I shop other stores too). What I don't like is the fact that I loose ALL of my discount if a few $'s were from the previous month. If you commute or use gas a lot, shopping at Safeway isn't always the best deal. The 2 stations on the corner of Mont/Dunne were cheaper for close to 2 months! And if you have a weekly trip to Gilroy, Costco is better! Use Gas Buddy and find the cheapest gas station either way.

  • jthorner posted at 6:25 am on Fri, Aug 10, 2012.

    jthorner Posts: 11

    This is sloppy reporting. Sure, Safeway discontinued the flat 3 cent per gallon discount, and someone in Dixon claims credit for it. But, Safeway continues to offer discounts of up to $1/gallon depending on how much business a customer does inside their store. So the notion that the lawsuit in Dixon caused Safeway to give up a small part of its program doesn't really pass the sanity test. Just "reporting" that so-an-so said thus-and-such is shallow journalism.

    Safeway has NOT stopped offering fuel discounts, they have ended the flat 3 cent discount and changed it to a 10 cent per $100 spent inside the store discount.

  • fredoilveri posted at 4:04 pm on Thu, Aug 9, 2012.

    fredoilveri Posts: 53

    It wasn't the complaint that made them have to stop offering discounts, it was the fact that they violated California law.

  • Pissed Off posted at 3:42 pm on Thu, Aug 9, 2012.

    Pissed Off Posts: 1

    I do work as a caregiver. I take the people I care for shopping and to Doctor appointment. They like to go to Safeway and they would insist on using my safeway card so that I would get the discount for gas. Most times these clients would like to shop every other week and spend $150.00, like my Mother.

    Now, because of one complaint, I, like alot of other Sons, Daughters and caregivers lose out.