Supervalu to sell Shop 'n Save

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arizonaguy
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Supervalu to sell Shop 'n Save

Post by arizonaguy »

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Re: Supervalu to sell Shop 'n Save

Post by rwsandiego »

OK, I'll say it. Maybe Albertsons will buy it.
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Re: Supervalu to sell Shop 'n Save

Post by klkla »

It looks like SuperValu is selling eight of their distribution centers and will then lease them back,

https://www.cnbc.com/amp/2018/04/24/reu ... ssure.html
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Re: Supervalu to sell Shop 'n Save

Post by pseudo3d »

Shop n Save's market share has dropped some 3% in two years, and while I can't find a contemporary chart that puts SnS at around 12%, as of 2012 it had 5% of the market share, trailing Dierbergs, which had about a dozen less stores (and all primarily in the suburbs). It gives off the same impression of Farm Fresh, a second-rate grocery store with nothing really special going for it and existing only because no one else will take it over. Cub Foods at least has been upgrading some of its stores, and despite Hy-Vee's growth, it's still #1.
klkla wrote: April 24th, 2018, 6:16 pm It looks like SuperValu is selling eight of their distribution centers and will then lease them back,

https://www.cnbc.com/amp/2018/04/24/reu ... ssure.html
Selling and leasing EIGHT? That sets all kinds of warning bells. No successful grocer (or especially wholesaler) would sell and lease back distribution centers like that unless they were planning on closing them down the line, or they were that strapped for cash.
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Re: Supervalu to sell Shop 'n Save

Post by storewanderer »

I don't think Albertsons will buy this... not really complimentary to anything they have. Though the STL territory is near Jewel Osco, the per store volumes of Shop N Saves are laughable compared to those of Jewel Osco and they would not be wise to water down the very high performing Jewel Osco division with these low volume stores. As far as the East Stores go, given thsoe are former Food Lion Stores, I think we know exactly how the volumes there are (far worse than STL I suspect). Both the STL and East stores have two things in common: low marketshare stores in generally middle to lower middle class locations... Albertsons pricing would not work in these stores, either.

I expect a lot of stores will simply close. Wal Mart Neighborhood Market would frankly be a pretty good fit for a lot of the Shop N Save Stores.
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Re: Supervalu to sell Shop 'n Save

Post by Bakeragr »

Hello. I’ve been reading this forum for some time, just now replying to a post. I live in MO in the central part of the state (Jefferson City).
SNS did quite well as they were perceived to be the lowest priced mainstream supermarket in STL, but I’m guessing that Walmart’s super center expansion in the last few years likely siphoned off their target customer.
I used to work for a liquor distributor in STL and was in nearly all of the local supermarkets. At the time, SNS has the best prices but very basic stores. I think today’s shopper has little reason to visit.
My guess is either Kroger will return to the market and/or split the stores with Schnucks. Dierbergs stores get private label good from SVU but they wouldn’t buy the stores; their niche is higher-end and every store they operate they built and own. Nearly all are the same layout and design.
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Re: Supervalu to sell Shop 'n Save

Post by pseudo3d »

Bakeragr wrote: April 25th, 2018, 11:28 am Hello. I’ve been reading this forum for some time, just now replying to a post. I live in MO in the central part of the state (Jefferson City).
SNS did quite well as they were perceived to be the lowest priced mainstream supermarket in STL, but I’m guessing that Walmart’s super center expansion in the last few years likely siphoned off their target customer.
I used to work for a liquor distributor in STL and was in nearly all of the local supermarkets. At the time, SNS has the best prices but very basic stores. I think today’s shopper has little reason to visit.
My guess is either Kroger will return to the market and/or split the stores with Schnucks. Dierbergs stores get private label good from SVU but they wouldn’t buy the stores; their niche is higher-end and every store they operate they built and own. Nearly all are the same layout and design.
Kroger won't return via SNS. They don't have anything that Kroger would want. Kroger looks for things like a strong #1 or a close #2 in major markets and self-distribution, neither of which SnS has. What I suspect what will happen is Schnucks will purchase a number, followed by a small number by independents and maybe a few by Dierbergs (which would get renovated).

As for the SnS stores in the East Coast, those are doomed. I could see Food Lion actually end up taking a few of the marginally profitable ones a la Haggen and Albertsons, but it's probably the end of the line for those stores.
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Re: Supervalu to sell Shop 'n Save

Post by Bakeragr »

I think you’re right about Kroger only going after stores with #1 or #2 market positions. But, Kroger’s Central division already drives through and around St. Louis to serve stores on its periphery and the Jay-C division has opened several Ruler stores in the market. When you get the St. Louis paper, Kroger advertises in the coupon section. It would be an easy fill-in opportunity. Their Gerbes (Dillons division) stores are just west of St. Louis also.
I’d say however the most likely outcome will be Schnucks, Kroger and some independents breaking up the stores piecemeal, just like what is happening to Farm Fresh.
No one else in the state will take the stores to enter St. Louis because they won’t want to take over the existing union contract. Hy-Vee is quite popular and successful in the rest of the state, but they are non-union, not to mention the stores would have to be completely gutted and rebuilt.
Kind of sad. SNS was quite a popular chain not that long ago.
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Re: Supervalu to sell Shop 'n Save

Post by bm11k »

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Re: Supervalu to sell Shop 'n Save

Post by storewanderer »

I suspect Schnucks was the only interested buyer. It probably took this long because they were holding out hoping for other offers or offers for more stores...

Closing pharmacy probably means the rest of the stores not sold to Schnucks will be closing.

Curious wrinkle in the deal that Supervalu will start to supply 9 far flung Schnucks Stores elsewhere. I wonder how private label will be handled in those 9 stores.

Schnucks is a great operator. They run good well merchandised stores with nice fresh departments. Their position reminds me somewhat of Raleys. They are not doing the volumes of a Hy Vee or enjoying the sterling reputation of Publix, but for their size they do a great job.
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