FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person * Griffith Kelly P   2. Issuer Name and Ticker or Trading Symbol SAFEWAY INC [SWY] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) _____ Director _____ 10% Owner __X__ Officer (give title below) _____ Other (specify below) Executive Vice President (Last) (First) (Middle) C/O SAFEWAY INC., 5918 STONERIDGE MALL RD. 3. Date of Earliest Transaction (Month/Day/Year) 12/22/2014 (Street) PLEASANTON, CA 94588 4. If Amendment, Date Original Filed(Month/Day/Year) 6. Individual or Joint/Group Filing(Check Applicable Line) _X_ Form filed by One Reporting Person ___ Form filed by More than One Reporting Person (City) (State) (Zip) Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned

1.Title of Security (Instr. 3) 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Common Stock 12/22/2014   M   20,000 A $ 34.95 66,456 D   Common Stock 12/23/2014   M   6,750 A $ 34.89 73,206 D   Common Stock 12/23/2014   F   5,432 D $ 34.89 67,774 D   Common Stock 12/23/2014   M   5,000 A $ 34.89 72,774 D   Common Stock 12/23/2014   F   3,707 D $ 34.89 69,067 D   Common Stock 12/23/2014   M   10,390 A $ 34.89 79,457 D   Common Stock 12/23/2014   F   7,911 D $ 34.89 71,546 D   Common Stock 12/23/2014   M   10,597 A $ 34.89 82,143 D   Common Stock 12/23/2014   F   8,372 D $ 34.89 73,771 D   Common Stock 12/23/2014   M   5,772 A $ 34.89 79,543 D   Common Stock 12/23/2014   F   4,553 D $ 34.89 74,990 D   Common Stock               6,385.882 (1) I By 401(k) Plan Common Stock               1,269.2746 (2) I By Employee Stock Purchase Plan Common Stock               400 I By Spouse (IRA)

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security (Instr. 3)

2. Conversion or Exercise Price of Derivative Security

3. Transaction Date (Month/Day/Year)

3A. Deemed Execution Date, if any (Month/Day/Year)

4. Transaction Code (Instr. 8)

5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5)

6. Date Exercisable and Expiration Date (Month/Day/Year)

7. Title and Amount of Underlying Securities (Instr. 3 and 4)

8. Price of Derivative Security (Instr. 5)

9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)

10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4)

11. Nature of Indirect Beneficial Ownership (Instr. 4)

Code

V

(A)

(D)

Date Exercisable

Expiration Date

Title

Amount or Number of Shares

Employee Stock Option (Right to Buy) (3)

$ 14.26 (4)

12/22/2014

M

20,000

(3)

03/02/2019

Common Stock

20,000

$ 0

0

D

Employee Stock Option (Right to Buy) (5)

$ 20.65 (4)

12/23/2014

M

6,750

(5)

03/05/2020

Common Stock

6,750

$ 0

6,750

D

Employee Stock Option (Right to Buy) (6)

$ 16.05 (4)

12/23/2014

M

5,000

(6)

07/26/2020

Common Stock

5,000

$ 0

5,000

D

Employee Stock Option (Right to Buy) (7)

$ 17.49 (4)

12/23/2014

M

10,390

(7)

03/08/2022

Common Stock

10,390

$ 0

20,778

D

Employee Stock Option (Right to Buy) (8)

$ 19.58 (4)

12/23/2014

M

10,597

(8)

03/08/2023

Common Stock

10,597

$ 0

31,790

D

Employee Stock Option (Right to Buy) (9)

$ 19.49 (4)

12/23/2014

M

5,772

(9)

04/29/2023

Common Stock

5,772

$ 0

17,314

D

Reporting Owners

Reporting Owner Name / Address	Relationships
	Director	10% Owner	Officer	Other
Griffith Kelly P C/O SAFEWAY INC. 5918 STONERIDGE MALL RD. PLEASANTON, CA 94588			Executive Vice President

Signatures

/s/ Laura A. Donald, Attorney-in-Fact		12/24/2014
**Signature of Reporting Person		Date

Explanation of Responses:

*	If the form is filed by more than one reporting person, see Instruction 4(b)(v).
**	Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1)	Between March 1, 2014 and November 30, 2014, the reporting person acquired 270.2394 shares of Safeway Common Stock under the Safeway 401(k) plan. The information in this report is based on a plan statement dated as of November 30, 2014.
(2)	Between March 1, 2014 and November 30, 2014, the reporting person acquired 188.8227 shares of Safeway Common Stock under the Safeway Employee Stock Purchase Plan. The information in this report is based on a plan statement dated as of November 30, 2014.
(3)	Granted under the Safeway Inc. 2007 Equity and Incentive Award Plan, which is a Rule 16b-3 plan. This option became fully exercisable on 3/2/2014.
(4)	The exercise price of the option was adjusted as a result of the 4/14/2014 distribution of shares of Blackhawk Network Holdings, Inc.
(5)	Granted under the Safeway Inc. 2007 Equity and Incentive Award Plan, which is a Rule 16b-3 plan. The option is exercisable in five annual increments of 20%, beginning on the first anniversary of the date of grant and will be fully exercisable on 3/05/2015.
(6)	Granted under the Safeway Inc. 2007 Equity and Incentive Award Plan, which is a Rule 16b-3 plan. The option is exercisable in five annual increments of 20%, beginning on the first anniversary of the date of grant and will be fully exercisable on 7/26/2015.
(7)	Granted under the Safeway Inc. 2011 Equity and Incentive Award Plan, which is a Rule 16b-3 plan. The option is exercisable in four annual increments of 25%, beginning on the first anniversary of the date of grant and will be fully exercisable on 03/08/2016.
(8)	Granted under the Safeway Inc. 2011 Equity and Incentive Award Plan, which is a Rule 16b-3 plan. The option is exercisable in four annual increments of 25%, beginning on the first anniversary of the date of grant and will be fully exercisable on 03/08/2017.
(9)	Granted under the Safeway Inc. 2011 Equity and Incentive Award Plan, which is a Rule 16b-3 plan. The option is exercisable in four annual increments of 25%, beginning on the first anniversary of the date of grant and will be fully exercisable on 04/29/2017.

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