In a statement Monday, the company said Vasant Prabhu, who also serves as executive vice president and president of the company's e-commerce business division, will remain with Safeway through the end of the year to assist in the transition. A search is underway for his replacement, the company said.

'We are grateful for Vasant's contributions to Safeway over the last three years. He provided strong leadership over our finance and information technology organizations, and was particularly helpful in the successful establishment of our Internet grocery business, Safeway.com. We appreciate what he has done for Safeway, and wish him well in his new position', Safeway Chairman and CEO Steve Burd said in the statement.