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Safeway Stores Inc. plans to close 68 stores in...

OMAHA, Neb. -- Safeway Stores Inc. plans to close 68 stores in Nebraska, Iowa, South Dakota and Kansas on March 27, a move that will put about 2,000 employees out of work, company officials announced Thursday.

Safeway, a major grocery chain in the Omaha area since 1926, plans to discontinue its Omaha division and related distribution facilities. It plans to close 42 stores in Nebraska, 24 in Iowa, one in Sioux Falls, S.D. and one in Hiawatha, Kan.

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Dick Knight, Safeway personnel manager in Omaha, said the stores were being closed because the operations have been unable to keep up with the competition.

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