Groceteria.com

From the July 1960 edition of Chain Store Age, pages 40-41 - a "small store" concept Safeway introduced in the Los Angeles area that summer, converting pre-marina and pre-pylon stores with low square footage to this format. According to this, the experimental branding was to last six months, and then be evaluated; I hadn't head of this before.

Also notable is that the term "outmoded" to describe the smaller locations (which tkaye pointed out was regularly used in Safeway News) was also used here by the unnamed Los Angeles Safeway executives who ere paraphrased...

(The large room to the right in the store layout on the first page is the stock room; in getting a photocopy of this, it got cut off.)

http://dtcwrt.earlracing.com/stores/csa/lucerne1.jpg
http://dtcwrt.earlracing.com/stores/csa/lucerne2.jpg

Any word on the location of these markets?

I don't see anything in the LA Times archive which is odd since every standard Safeway opening in 1960 seems to have an article written about it. I wonder how heavily this concept was promoted.