Store Locations Closed by Hurricane Harvey in Houston Area

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Re: Store Locations Closed by Hurricane Harvey in Houston Area

Post by submariner »

pseudo3d wrote: October 4th, 2017, 6:44 am

So, Kroger reopens, Randalls reopens, and H-E-B makes delays. Just like Ike, huh?
Not making excuses, but Kroger and Randalls also have significantly larger corporate capital to get the stores rebuilt and restocked quicker.
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Re: Store Locations Closed by Hurricane Harvey in Houston Area

Post by pseudo3d »

submariner wrote: October 4th, 2017, 4:16 pm
pseudo3d wrote: October 4th, 2017, 6:44 am

So, Kroger reopens, Randalls reopens, and H-E-B makes delays. Just like Ike, huh?
Not making excuses, but Kroger and Randalls also have significantly larger corporate capital to get the stores rebuilt and restocked quicker.
H-E-B probably has as much corporate capital if not moreso than Albertsons/Safeway (proportionally, at least). Their revenue is a third of Albertsons', despite having a fifth of the store base Albertsons does. The store they closed in Galveston was also a "Pantry" store with almost no full-service departments, just like the Braeswood H-E-B. Braeswood is under 20k square feet and lacks all but a deli (no pharmacy or bakery, I think there may be a meats counter). They have been phasing out that store prototype, and many have already been replaced, in the process of being replaced, or are planned to be replaced. Not sure what the deal is with Kingwood though.
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Re: Store Locations Closed by Hurricane Harvey in Houston Area

Post by architect »

pseudo3d wrote: October 4th, 2017, 4:43 pm
submariner wrote: October 4th, 2017, 4:16 pm
pseudo3d wrote: October 4th, 2017, 6:44 am

So, Kroger reopens, Randalls reopens, and H-E-B makes delays. Just like Ike, huh?
Not making excuses, but Kroger and Randalls also have significantly larger corporate capital to get the stores rebuilt and restocked quicker.
H-E-B probably has as much corporate capital if not moreso than Albertsons/Safeway (proportionally, at least). Their revenue is a third of Albertsons', despite having a fifth of the store base Albertsons does. The store they closed in Galveston was also a "Pantry" store with almost no full-service departments, just like the Braeswood H-E-B. Braeswood is under 20k square feet and lacks all but a deli (no pharmacy or bakery, I think there may be a meats counter). They have been phasing out that store prototype, and many have already been replaced, in the process of being replaced, or are planned to be replaced. Not sure what the deal is with Kingwood though.
For the Braeswood/Chimney Rock store, HEB may also be having difficulty maintaining insurance due to the fact that it has been repeatedly flooded in recent years. In addition, since the store is so outdated, I'm assuming that they are taking a close look at alternate sites before investing any more into the current location. Considering the dense population and income levels in the surrounding neighborhoods, I don;t see them leaving the area long-term. On the other hand, they have little need to rush a reopening as most of the homes in the area will also be uninhabitable for the next 3-6 months.

As far as the Kingwood store goes, it is at a substantially lower elevation than the Randalls across the street. Considering that the Randalls got six feet of water, I would guess that HEB got eight-nine, which would essentially force the store to be completely gutted. Literally everything aside from lighting and some HVAC is likely having to be replaced.
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Re: Store Locations Closed by Hurricane Harvey in Houston Area

Post by pseudo3d »

architect wrote: October 4th, 2017, 5:41 pm
pseudo3d wrote: October 4th, 2017, 4:43 pm
submariner wrote: October 4th, 2017, 4:16 pm

Not making excuses, but Kroger and Randalls also have significantly larger corporate capital to get the stores rebuilt and restocked quicker.
H-E-B probably has as much corporate capital if not moreso than Albertsons/Safeway (proportionally, at least). Their revenue is a third of Albertsons', despite having a fifth of the store base Albertsons does. The store they closed in Galveston was also a "Pantry" store with almost no full-service departments, just like the Braeswood H-E-B. Braeswood is under 20k square feet and lacks all but a deli (no pharmacy or bakery, I think there may be a meats counter). They have been phasing out that store prototype, and many have already been replaced, in the process of being replaced, or are planned to be replaced. Not sure what the deal is with Kingwood though.
For the Braeswood/Chimney Rock store, HEB may also be having difficulty maintaining insurance due to the fact that it has been repeatedly flooded in recent years. In addition, since the store is so outdated, I'm assuming that they are taking a close look at alternate sites before investing any more into the current location. Considering the dense population and income levels in the surrounding neighborhoods, I don;t see them leaving the area long-term. On the other hand, they have little need to rush a reopening as most of the homes in the area will also be uninhabitable for the next 3-6 months.

As far as the Kingwood store goes, it is at a substantially lower elevation than the Randalls across the street. Considering that the Randalls got six feet of water, I would guess that HEB got eight-nine, which would essentially force the store to be completely gutted. Literally everything aside from lighting and some HVAC is likely having to be replaced.
Good thing H-E-B's pretty cheap on store interiors, then. I think Kingwood had the "Cafe on the Run" (so they actually had hot food in the deli) but the floor is concrete and the decor is pretty minimal.
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Re: Store Locations Closed by Hurricane Harvey in Houston Area

Post by architect »

pseudo3d wrote: October 4th, 2017, 6:06 pm
architect wrote: October 4th, 2017, 5:41 pm
pseudo3d wrote: October 4th, 2017, 4:43 pm

H-E-B probably has as much corporate capital if not moreso than Albertsons/Safeway (proportionally, at least). Their revenue is a third of Albertsons', despite having a fifth of the store base Albertsons does. The store they closed in Galveston was also a "Pantry" store with almost no full-service departments, just like the Braeswood H-E-B. Braeswood is under 20k square feet and lacks all but a deli (no pharmacy or bakery, I think there may be a meats counter). They have been phasing out that store prototype, and many have already been replaced, in the process of being replaced, or are planned to be replaced. Not sure what the deal is with Kingwood though.
For the Braeswood/Chimney Rock store, HEB may also be having difficulty maintaining insurance due to the fact that it has been repeatedly flooded in recent years. In addition, since the store is so outdated, I'm assuming that they are taking a close look at alternate sites before investing any more into the current location. Considering the dense population and income levels in the surrounding neighborhoods, I don;t see them leaving the area long-term. On the other hand, they have little need to rush a reopening as most of the homes in the area will also be uninhabitable for the next 3-6 months.

As far as the Kingwood store goes, it is at a substantially lower elevation than the Randalls across the street. Considering that the Randalls got six feet of water, I would guess that HEB got eight-nine, which would essentially force the store to be completely gutted. Literally everything aside from lighting and some HVAC is likely having to be replaced.
Good thing H-E-B's pretty cheap on store interiors, then. I think Kingwood had the "Cafe on the Run" (so they actually had hot food in the deli) but the floor is concrete and the decor is pretty minimal.
If I remember correctly, the Kingwood store had pretty much every available HEB amenity outside of a restaurant. It was definitely a full-featured store. The most expensive and lengthy part of the repairs is not actually replacing drywall and above-ground equipment, it is replacing all of the piping running through the slab for plumbing and refrigeration units. With a store the size of Kingwood's, this can be an extremely complex process as the piping has to be dug up without damaging the structural makeup of the foundation.

Side note, I wonder if the Randalls across the street will receive Colorful Lifestyle (or another new decor package) while it is closed anyway?
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Re: Store Locations Closed by Hurricane Harvey in Houston Area

Post by pseudo3d »

architect wrote: October 4th, 2017, 6:37 pm
pseudo3d wrote: October 4th, 2017, 6:06 pm
architect wrote: October 4th, 2017, 5:41 pm

For the Braeswood/Chimney Rock store, HEB may also be having difficulty maintaining insurance due to the fact that it has been repeatedly flooded in recent years. In addition, since the store is so outdated, I'm assuming that they are taking a close look at alternate sites before investing any more into the current location. Considering the dense population and income levels in the surrounding neighborhoods, I don;t see them leaving the area long-term. On the other hand, they have little need to rush a reopening as most of the homes in the area will also be uninhabitable for the next 3-6 months.

As far as the Kingwood store goes, it is at a substantially lower elevation than the Randalls across the street. Considering that the Randalls got six feet of water, I would guess that HEB got eight-nine, which would essentially force the store to be completely gutted. Literally everything aside from lighting and some HVAC is likely having to be replaced.
Good thing H-E-B's pretty cheap on store interiors, then. I think Kingwood had the "Cafe on the Run" (so they actually had hot food in the deli) but the floor is concrete and the decor is pretty minimal.
If I remember correctly, the Kingwood store had pretty much every available HEB amenity outside of a restaurant. It was definitely a full-featured store. The most expensive and lengthy part of the repairs is not actually replacing drywall and above-ground equipment, it is replacing all of the piping running through the slab for plumbing and refrigeration units. With a store the size of Kingwood's, this can be an extremely complex process as the piping has to be dug up without damaging the structural makeup of the foundation.
They dug up a lot of stuff when they renovated the College Station H-E-B and just re-patched it with concrete. There was plywood and/or metal plates for a while during this process, and you can still see where pipes were re-run post-remodel. H-E-B doesn't seem to care about how floors look, and maybe that's a good thing.

They used to be in the old Albertsons across the street, and I think that up until it closed, it kept its flooring.
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Re: Store Locations Closed by Hurricane Harvey in Houston Area

Post by architect »

And sure enough, HEB has announced that the Braeswood/Chimney Rock store will not be reopening in its current location, but they are in active negotiations for another site in the area.

Link: http://www.houstonpress.com/restaurants ... od-9848482

Hoestly, due to a lack of available land in the area, I am assuming that they are in discussions with another retailer to take over another space. My guesses are either the JCPenney at Meyerland Plaza or the Randalls at 4800 Bellfort (I am sure that they could Albertsons an appetizing enough offer to take it off of their hands, particularly considering the bleak turnaround opportunities for Randalls as a whole). The Food Town at 9725 Fondren (former Albertsons) would also be a suitable box, but the demographics are likely too weak there.
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Re: Store Locations Closed by Hurricane Harvey in Houston Area

Post by pseudo3d »

architect wrote: October 5th, 2017, 8:23 pm And sure enough, HEB has announced that the Braeswood/Chimney Rock store will not be reopening in its current location, but they are in active negotiations for another site in the area.

Link: http://www.houstonpress.com/restaurants ... od-9848482

Hoestly, due to a lack of available land in the area, I am assuming that they are in discussions with another retailer to take over another space. My guesses are either the JCPenney at Meyerland Plaza or the Randalls at 4800 Bellfort (I am sure that they could Albertsons an appetizing enough offer to take it off of their hands, particularly considering the bleak turnaround opportunities for Randalls as a whole). The Food Town at 9725 Fondren (former Albertsons) would also be a suitable box, but the demographics are likely too weak there.
If they're in "active negotiations" I think that Randalls or JCPenney would fit the bill. Food Town's out, one of the things I heard about that store was how horrible the demographics were, and frankly, it was probably flooded to some extent as well. JCPenney's space may work, it's the last remaining piece of Meyerland Plaza as an outdoor mall (a renovation in the late 1990s converted the outdoor "dumbbell" mall to a strip center) but JCPenney isn't doing too hot and with that store probably out of commission as well due to flooding, they could take the way out. The parking lot isn't very conducive to a supermarket set-up, a department store could have parking on all three sides while grocery stores tend to better with just one. Unless they wanted a weird store with three entrances they would have to dramatically reconfigure the parking lot one way or another.

Randalls would also work, but it's also a small store at 55k square feet, something H-E-B would find unacceptable, so they'd also have to negotiate with the adjacent tenants to kick them out to reach something closer to 70k square feet. Albertsons losing money would tilt the deal in H-E-B's favor though since they actually compete in markets it would be difficult to see that without some sort of counter-offer like giving up leases they hold on former stores in Austin and others, or shaking down H-E-B for more money than what that Randalls store is actually worth.
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Re: Store Locations Closed by Hurricane Harvey in Houston Area

Post by architect »

pseudo3d wrote: October 6th, 2017, 1:21 pm
architect wrote: October 5th, 2017, 8:23 pm And sure enough, HEB has announced that the Braeswood/Chimney Rock store will not be reopening in its current location, but they are in active negotiations for another site in the area.

Link: http://www.houstonpress.com/restaurants ... od-9848482

Hoestly, due to a lack of available land in the area, I am assuming that they are in discussions with another retailer to take over another space. My guesses are either the JCPenney at Meyerland Plaza or the Randalls at 4800 Bellfort (I am sure that they could Albertsons an appetizing enough offer to take it off of their hands, particularly considering the bleak turnaround opportunities for Randalls as a whole). The Food Town at 9725 Fondren (former Albertsons) would also be a suitable box, but the demographics are likely too weak there.
If they're in "active negotiations" I think that Randalls or JCPenney would fit the bill. Food Town's out, one of the things I heard about that store was how horrible the demographics were, and frankly, it was probably flooded to some extent as well. JCPenney's space may work, it's the last remaining piece of Meyerland Plaza as an outdoor mall (a renovation in the late 1990s converted the outdoor "dumbbell" mall to a strip center) but JCPenney isn't doing too hot and with that store probably out of commission as well due to flooding, they could take the way out. The parking lot isn't very conducive to a supermarket set-up, a department store could have parking on all three sides while grocery stores tend to better with just one. Unless they wanted a weird store with three entrances they would have to dramatically reconfigure the parking lot one way or another.

Randalls would also work, but it's also a small store at 55k square feet, something H-E-B would find unacceptable, so they'd also have to negotiate with the adjacent tenants to kick them out to reach something closer to 70k square feet. Albertsons losing money would tilt the deal in H-E-B's favor though since they actually compete in markets it would be difficult to see that without some sort of counter-offer like giving up leases they hold on former stores in Austin and others, or shaking down H-E-B for more money than what that Randalls store is actually worth.
For the JCPenney space, the stores in Meyerland Plaza were surprisingly not affected by flooding, or very little at most. The adjacent Target reopened almost immediately after the storm. If HEB was to take over the site, they would likely build the store close to the corner of Beechnut/Endicott, with the current JCPenney site used for parking. Or they could build a two level store across the current JCPenney footprint and the parking to the west, with parking on the ground level and the store above. I think that this is definitely a stretch, but still a possibility considering JCP's recovering financials and their need to divest real estate.

As far as the Randalls goes, the only was I could see the deal really working is if HEB was to buy the current Randalls store, the adjacent in-line stores, and possibly the Kohl's next door (Kohl's is in a similar position to JCP and is actively trying to downsize stores/reduce marginal stores). I agree that it would be extremely unlikely for HEB to take over the Randalls store as-is due to square footage and also the store's old age and generally poor condition. This is easily one of the most run-down Randalls locations that I have seen.

Side note: HEB has already announced via a press release to local residents that they will be opening a replacement Meyerland location in 2019, so it sounds like this deal is pretty far along already. In this announcement, HEB also stated that the (currently under construction) Bellaire store will be carrying a substantial Kosher product selection until the new Meyerland location opens, which may feature a Kosher bakery and deli. Apparently the Meyerland area is home to a large Jewish population, which also explains the Kosher deli at the nearby Randalls.
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Re: Store Locations Closed by Hurricane Harvey in Houston Area

Post by pseudo3d »

architect wrote: October 8th, 2017, 5:50 pm
pseudo3d wrote: October 6th, 2017, 1:21 pm
architect wrote: October 5th, 2017, 8:23 pm And sure enough, HEB has announced that the Braeswood/Chimney Rock store will not be reopening in its current location, but they are in active negotiations for another site in the area.

Link: http://www.houstonpress.com/restaurants ... od-9848482

Hoestly, due to a lack of available land in the area, I am assuming that they are in discussions with another retailer to take over another space. My guesses are either the JCPenney at Meyerland Plaza or the Randalls at 4800 Bellfort (I am sure that they could Albertsons an appetizing enough offer to take it off of their hands, particularly considering the bleak turnaround opportunities for Randalls as a whole). The Food Town at 9725 Fondren (former Albertsons) would also be a suitable box, but the demographics are likely too weak there.
If they're in "active negotiations" I think that Randalls or JCPenney would fit the bill. Food Town's out, one of the things I heard about that store was how horrible the demographics were, and frankly, it was probably flooded to some extent as well. JCPenney's space may work, it's the last remaining piece of Meyerland Plaza as an outdoor mall (a renovation in the late 1990s converted the outdoor "dumbbell" mall to a strip center) but JCPenney isn't doing too hot and with that store probably out of commission as well due to flooding, they could take the way out. The parking lot isn't very conducive to a supermarket set-up, a department store could have parking on all three sides while grocery stores tend to better with just one. Unless they wanted a weird store with three entrances they would have to dramatically reconfigure the parking lot one way or another.

Randalls would also work, but it's also a small store at 55k square feet, something H-E-B would find unacceptable, so they'd also have to negotiate with the adjacent tenants to kick them out to reach something closer to 70k square feet. Albertsons losing money would tilt the deal in H-E-B's favor though since they actually compete in markets it would be difficult to see that without some sort of counter-offer like giving up leases they hold on former stores in Austin and others, or shaking down H-E-B for more money than what that Randalls store is actually worth.
For the JCPenney space, the stores in Meyerland Plaza were surprisingly not affected by flooding, or very little at most. The adjacent Target reopened almost immediately after the storm. If HEB was to take over the site, they would likely build the store close to the corner of Beechnut/Endicott, with the current JCPenney site used for parking. Or they could build a two level store across the current JCPenney footprint and the parking to the west, with parking on the ground level and the store above. I think that this is definitely a stretch, but still a possibility considering JCP's recovering financials and their need to divest real estate.

As far as the Randalls goes, the only was I could see the deal really working is if HEB was to buy the current Randalls store, the adjacent in-line stores, and possibly the Kohl's next door (Kohl's is in a similar position to JCP and is actively trying to downsize stores/reduce marginal stores). I agree that it would be extremely unlikely for HEB to take over the Randalls store as-is due to square footage and also the store's old age and generally poor condition. This is easily one of the most run-down Randalls locations that I have seen.

Side note: HEB has already announced via a press release to local residents that they will be opening a replacement Meyerland location in 2019, so it sounds like this deal is pretty far along already. In this announcement, HEB also stated that the (currently under construction) Bellaire store will be carrying a substantial Kosher product selection until the new Meyerland location opens, which may feature a Kosher bakery and deli. Apparently the Meyerland area is home to a large Jewish population, which also explains the Kosher deli at the nearby Randalls.
I can't find anything about Meyerland opening a replacement store after some searching. I was going to post this before RetailWatchers went down a few days ago, but "why reopen?" H-E-B's modus operandi is to replace smaller stores with bigger stores whenever possible (even for non-Pantry, two stores were axed in Waco for one Plus not too long ago). With Bellaire already being reconstructed (and not too far away), why is Meyerland even worth saving anymore? If H-E-B is saying that negotiations were underway and it could be ready by 2019, they probably had a replacement in the wings before Harvey, and THAT was probably new build (not replacing other retail). This is assuming that 2019 is not just a "at the earliest" year and there's actually no store in the works.

And yes, Meyerland does have a large Jewish population (even traditionally), you can see evidence of that in some of the strip mall stores near that H-E-B.
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