Dominick DiMatteo, born in Sicily, founded the chain in 1918. The second Dominick's opened in 1934. In 1950, the DiMatteos opened their first supermarket, a 14,000-square-foot (1,300 m2) store
In 1998, the chain's then 116 stores were acquired by Safeway Inc. Safeway soon began to push Safeway private-label products and eliminated local known brands.
Dominick's distribution center is located in Northlake, while its management offices are located in Oak Brook.
Dominick's Supermarkets feeds residents of the Windy City. The company is the second-largest supermarket operator in the metropolitan Chicago area (behind SUPERVALU-owned Jewel-Osco). Dominick's has about 75 stores (from a peak of 130 in the late 1990s), including more than 50 large Lifestyle-format stores with upscale deli and bakery departments and expanded produce areas, floral departments, and in-store cafes. The rest are mostly conventional supermarkets. Dominick's also operates a commissary that produces its prepared foods. With roots in Chicago since 1918, Dominick's is a division of supermarket giant Safeway. Under Safeway's owership the chain has shrunk and lost considerable market share.