New Sacramento Grocers Pressure Traditional Supermarkets

As new grocers enter the Sacramento, Calif., market, traditional unionized supermarkets Raley's and Safeway are losing market share, The Sacramento Bee reported. With higher labor costs than nonunionized entrants to the market, Raley's wants to cut benefits to remain competitive. Most analysts suggest Safeway can fend off the newcomers with its national network and significant financial resources, while Raley's, which is more regional, could be sold.

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