I think Stater will do just fine with their upscale format because they run their stores well and can execute well. They have good employees who actually care about the operation and appear to be allocating more labor to those newer stores to improve service. Typical Stater locations seem to be staffed adequately but a big push on employee efficiency is there and it is clear they watch labor hours carefully and watch efficiency metrics closely.Bagels wrote: ↑February 28th, 2021, 10:52 am
@kikla summed it up really well. SB introduced their "Blue Ribbon" format which features an upscale interior, higher quality perishables and more prepared foods (including an island where they cut and package produce). I question how many of there stores could support this format, given that prices are noticeably higher. For example, when I stopped in the new Tustin location recently, "due to a global shortage" bananas were selling for 75c/lb., which is higher than Ralphs and Albertsons/Vons and by itself will turn away a number of casual shoppers. Even the generic Topco sheet cake slices (branded "Cleo and Leo") were selling now selling for $4.49 a slice , up from a $1.99 just two or three years ago.
Ultimately, until SB finds itself and turns its reputation around, I doubt it'd be able to successfully pick off any Gilson's location.
Bad comparison. By 2000, Ralphs, Vons and Albertsons were bloated chains (a result of multiple mergers) with comprehensive coverage in LA/OC. It was inevitable that the chains were going to shrink. In contrast, SB had minimal presence and plenty of opportunity for growth. Yet the chain has remained stagnant, even as plenty of opportunities have arose -- e.g. the decline of Haggen lead to dozens of stores, many of which had received some degree of renovation, on the market at cheap rates -- but they've yet to make a move.
Going rate on bananas in NorCal proper is .79/lb at Safeway (.55/lb at the Nevada Safeways on the price cut program who are matching Smiths). Smiths has a sign up about a banana price increase but I never saw any increase. Save Mart (also under a price cut program monitoring Smiths prices in NV) went from .53/lb to .54/lb and Wal Mart went from .55/lb to .56/lb. Surprised Vons is lower than NorCal Safeway's base .79/lb price.
I think the comparison is relevant. Also Vons wasn't really as bloated as they had not had any merger since the 80's. Yet they have declined in store count significantly. Ralphs and Albertsons were definitely bloated from 90's mergers with many junk stores, that I agree with. But the point of the merger is to grow market share (even if you do it by closing stores). I am pretty sure Vons, Albertsons, and Ralphs have all bled significant market share in the southland today vs. 20 years ago. Has Stater? I don't think so. I think Stater's share has grown slightly.
I also think had some of those mergers in the 90's not happened, Stater would likely be out of business today or have been acquired by someone else. The purchase of those Albertsons/Lucky Stores was a huge coup for Stater and they did very well with it. Stater has also done the right thing for its employees and customers time and time again- not participating in the nasty 00's strike and keeping their stores open and employees employed (also calling in some of the employees on strike from Vons, Ralphs, and Albertsons to fill shifts), now in the 2020 COVID Stater pays the employees hazard pay all year while you have competition trying to block it legally or closing stores as a result of not wanting to pay it. There are a lot of good career grocery employees at Stater who previously worked for the larger chains and they were very Lucky (capitalized deliberately) to gain employment at a chain that has been run properly over the past 20 years with minimal store closure activity and other anti-employee games like strikes or closing stores over hazard pay. Oh, and no anti-customer loyalty card to screw around with either.
Again I say all this not really being too thrilled with Stater's pricing/mix, lack of self checkout, etc. from a customer perspective when I travel into SoCal, but I can definitely see how and why they are successful and expect that success to continue, and share declines for Ralphs, Vons, and Albertsons to continue.