klkla wrote:storewanderer wrote:Last ditch effort to save performance by doing a remodel?
That could be part of it. I think the bigger issue has to deal with the expansion of non-union price impact chains like Aldi and Smart & Final. These remodels were done before Aldi announced their expansion and before Smart & Final picked up so many Haggen locations.
Ralph has so many locations in high income areas where they will not have to compete with these low-priced entities. They are aggressively remodeling these type of stores. I think Ralphs role within Kroger will be to be the 'cash cow' that provides cash flow going forward with minimal investment in second-tier locations.
Aldi is having no impact in Southern California. Most of their stores so far are not opening near a Ralphs. There is too much competition, lower priced with better selection tailored to this market than them, in SoCal for them to survive. I've been in 3 locations and none of the locations have had more than 10 customers when I've been in the stores at prime shopping hours. They will completely fail in Southern California. After their initial spurt of openings, there is no buzz about them at all. I hear more buzz for Grocery Outlet locations opening.
As for Smart & Final, although I initially saw a number of customers just after their grand opening in locations such as Torrance, which is a former large Albertsons, you can now enter that store, for example, at most any hour and hear a pin drop. Sad since, at least for that location, that was a very attractive store. Seen a similar drop off in their San Pedro and Redondo Beach former Albertsons locations.
Ralphs, in most cases except with landlords (they also lost their Hermosa Beach location because of a landlord which just reopened as a Trader Joes a week ago which the landlord wanted), is closing locations because of ethnic changes. They are leaving areas with heavy immigrated Asian and Hispanic residents, illegal or legal. San Gabriel Valley is a classic example of that for Ralphs. Their Food 4 Less division also can't compete in areas with many Hispanic targeted non-union grocers.