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The Arizona Republic reports that independent food retailer Bashas’ moved into second place in Valley area market share last year, moving past Safeway and just behind Fry’s. While Bashas’ remains in third place statewide, the paper says it is just a “smidgeon” behind Safeway and poised to make a move there, too.

Analysts attribute Bashas’ success, even as Wal-Mart moves aggressively into the market with supercenters and Neighborhood Markets, to its use of three different formats to satisfy a wide range of customers. The company operates the upscale AJ's Purveyors of Fine Foods, regular Bashas' stores, and the Hispanic-oriented Food City stores.
KC's View:
Bashas’ remains in control of its own destiny because it understands that “compete” is a verb. That doesn’t mean that Wal-Mart isn’t a threat…just that whining about it doesn’t solve the problem.

This change in ranking says a lot about Bashas’. But it also says a lot about Safeway…and you have to wonder if the senior management there is getting the message.