Safeway Told To Pay US$600k For Clean Air Violations

Safeway Told To Pay US$600k For Clean Air Violations

Source: Business Monitor International, September 6, 2013
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News: US-based supermarket chain Safeway is to pay US$600,000 and has agreed to reduce greenhouse gas emissions from refrigeration equipment at its 659 US stores, reports USA Today. The company’s fine and agreed action make up the terms of a settlement it reached with the US Environmental Protection Agency and Department of Justice under the Clean Air Act. Safeway is being punished for violating the US’ clear air laws by not quickly fixing leaks of HCFC-22: a gas that contributes to climate change, and for failing to maintain proper records. Safeway, who has also agreed to reduce its company-wide average leak rate from 25% to 18% or below by 2015, will invest around US$4.1mn in new systems, equipment upgrades and other changes designed to reduce leakage of the harmful gas.

BMI View: The mass grocery retail (MGR) sector in the US is expected to reflect the wider trends in consumption and economic situation, with growth rates in the supermarket and hypermarket sector not expected to reach their 2002-2007 highs over our forecast period. This reduced level of growth can also be attributed to increased saturation in the ‘big box’ retail format, with reduced opportunities for the major players to expand. However, while mainstream retailers may find the next five years challenging, there are subsectors for which we forecast stronger growth, namely the discount and convenience formats.

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