Coburg Road Safeway makes way for another remodel.

Byline: RETAIL NOTEBOOK By Joe Mosley The Register-Guard

Just four years ago, the newly remodeled Safeway store at Coburg and Cal Young roads in Eugene was labeled by company officials as the "latest and greatest" of the chain's bigger-is-better superstores.

Swagger has since taken a back seat to style in the grocery world, and the store in Coburg Road's Sheldon Plaza is under the knife for another makeover.

This time, it will become part of the supermarket chain's move toward upscale "lifestyle stores," which feature natural and organic products; expanded deli, produce and wine selections; and inviting decor.

"We've been aggressively remodeling our stores with this new lifestyles format," says Bridget Flanagan, public affairs director for Safeway's Oregon and southwest Washington region.

About 25 of the 118 stores in the region are expected to be renovated as lifestyle stores by the end of this year, at a cost of more than $2 million each. The closest stores to Eugene that already have been remodeled are in Lebanon and Roseburg; the chain's Florence store is in line for an update later this year.

"This is one of the most aggressive remodeling projects I've experienced in my 30 years (with Safeway)," Flanagan says. "We're rolling them out as quickly as we can."

The Coburg Road store underwent a massive, $6 million renovation and expansion to its current 52,000 square feet in 2001, requiring closure of the store for four months. Another store on 18th Avenue was remodeled at about the same time - the two most recent upgrades among Safeway's six Eugene-Springfield locations.

That has raised speculation that the company's choice of the Coburg Road outlet to become its first local lifestyle store may be motivated by competition.

Market of Choice plans to open by late November in an expanded and redesigned former Wild Oats Market location on Willakenzie Road, just off Coburg Road. The company is spending about $2.2 million on that project.

And Whole Foods Market is jockeying with city officials for a store just over the Ferry Street Bridge in downtown Eugene.

"The growth of the (grocery) industry is in our category; that's definitely where consumers are looking right now," says Rick Wright, president and CEO of Wright's Foodliner, parent company of the upscale Market of Choice.

"The question is, can the big chains accomplish what small, regional chains have been able to do," Wright says. "It's been very difficult for them to do that. But of course they're going to try. It would be crazy for them not to."

Flanagan acknowledges that Safeway has noticed the success of chains that have focused on warm aesthetics, natural products, gourmet foods and fresh, prepared meals. But she says that Safeway is finding its own way, based on two years of customer surveys and focus groups.

"We're not chasing anyone, like a Whole Foods or a Market of Choice," she says. "We're trying to encompass all those components today's consumers say they want, and do it under one roof."

Unlike the 2001 remodeling project, the current upgrade will not require closing the Coburg Road store. Some preliminary work in the store began last week, and the project is expected to be completed by the end of September.

Retail Notebook runs on Thursdays. Joe Mosley can be reached at 338-2384 or jmosley@ guardnet.com.