Safeway Inc. said last month that it plans to open about 25 new stores and remodel about 275 others next year. The company has already remodeled about 43% of its 1,767 stores to the “Lifestyle” format, which includes bakeries, a produce section reminiscent of an outdoor market and large flower shop areas. It expects 94% of its stores to be set in the “Lifestyle” format in 2009.

The California-based chain, the No. 3 grocer in the U.S., also said that initiatives ranging from organic baby food to massive growth in its relatively unknown Blackhawk gift card unit should help grow long-term earnings this year.