RNS No 7631x
SAFEWAY PLC
1st July 1997

AGM STATEMENT

David Webster, Chairman, speaking today to shareholders
at the Safeway plc Annual General Meeting, made the
following comments on current trading:-

"As I said in my preliminary statement to shareholders,
our industry continues to be highly competitive during a
period of disinflation in selling prices and of increased
revenue investment in customer service, technology based
innovation and brand marketing.  Our challenge remains,
in the year ahead, to improve efficiency and grow volume
sales.

Since the beginning of the year and adjusting for the
timing of Easter, total sales for the Safeway fascia have
grown by 11%, helped by transfers of stores from Presto.
Total group sales have increased by 7.3%.  Like for like
sales for Safeway have grown by 3.2% which, because our
prices are on average 0.5% below last year, means volumes
are up by a healthy 3.7%".

Contacts:

Press
Kevin Hawkins - 0181 848 8744
Investor Relations:
Steve Webb      - 0171 493 1040


J P KINCH
Group Company Secretary


END