WSJ: The Supermarket - more than just a food store

[SamSpade]

WSJ: Attention Shoppers: Yoga in Aisle 3 Grocers offer fitness classes, facials, child care to lure consumers away from online rivals
The full-text of this article was highlighted today in the WSJ SnapChat account, originally published June 14. My apologies that it is not available on the web, but your local library may provide full-text access for free. The library here is through ProQuest.

Summary:
First quarter profits were weak for nearly the entire grocery sector, and even trendy chains such as Whole Foods are struggling to differentiate themselves as Wal-Mart Stores Inc. and other big-box retailers expand natural and organics sections. Jefferies Group LLC estimated last month that online grocery sales could grow to 8% of grocery sales in 2025 from 2.5% today. [...]there are threats from European deep-discount supermarkets such as Aldi and Lidl as they expand their U.S. presence.

Interesting note:
Ace Hardware has set up shops within more than 100 grocery stores as part of a push by the Illinois-company into independent supermarkets in the past three years. Grocers pay a $5,000 fee and purchase $5,000 of inventory to join the hardware cooperative. They must guarantee a certain level of inventory at all times.
Guess that's where the Ridley's (out west), Associated Food Stores members and Lawrence Bros. (NM, W Texas) are getting hardware into their stores.

[storewanderer]

Ridley's bought the long-standing independent Ace Store in Winnemucca (it was actually a really big store definitely in the 20,000 square foot range plus a "yard" whatever that was) and is in the process of closing it so they will have Ace inside the former Raleys there (maybe 12,000 square feet of space).

Winnemucca has a pretty large Big R Store (and Wal Mart) so I suspect the Ace was not doing too well. Big R (affiliated with Do It Best) seems to have much, much lower pricing than Ace. I have noticed this in both Fallon and Winnemucca where these two compete. Different Ace operator in each place but both quite high on the price.

In any case I guess this affirms Ridleys is committed to Winnemucca. Ridleys has some really good deals but their operation could be better. Their store seems a little bit busier than Raleys was, but it is not run to the standard of Raleys (scan errors are common, bakery/deli don't look good, seems to be a fair amount of outdated product on the dry goods shelves, lights aren't all on, etc.) despite having the same store manager and the same employees. I can see Ridley's has clearly cut some corners/expenses and now adding in Ace (in space that was previously very dead space) should help get them a little more margin or at least fill up space with stuff that doesn't expire.

[pseudo3d]

I have yet to see an Ace Hardware inside bigger chains that aren't small chains in fairly desolate areas. I saw that the Lowe's Market in Johnson City, TX (west of Austin) had one, and I know for a fact that the former Cash Saver (Lawrence Bros.) in Abilene lost theirs after being acquired by United. Kinda neat concept in theory, and I do wonder why bigger supermarkets don't carry the depth of hardware Ace has in their non-food departments (I actually never saw an Ace store-within-a-store inside in person but I imagine it to be like the sadly defunct 12k square feet Ace Hardware near where I live).

[wnetmacman]

This is not a new idea. A former Safeway store in Bastrop, LA is Cash Saver on the right, hardware on the left. Has been that way for some time. Another store in New Iberia, LA has been known as Fremin's Food & Furniture for 20+ years.

Ace is just trying to take credit for the idea.