US grocer Safeway has said its long-term earnings growth target of 13% to 15% was “too high”.

Safeway blamed the warning on the soft economy Stateside.

Chief executive Steve Burd said the company plans to focus on improving its merchandise offerings in order to lure back customers to boost growth.

Safeway said it expects to open 50 to 55 new stores in the coming year as part of $1.5bn capital expenditure programme.