Ahold and Delhaize merger closing at the end of the month

[klkla]

I believe there are Martin's elsewhere that Publix ISN'T buying (like in Roanoke), because Publix isn't buying the name, so it will probably be still operated BY Martin's until they're closed by Publix, much like (I presume) Publix did with the 2008 Albertsons purchases.

I think you are right on this one. This is what I read: "The Martin’s stores will continue to operate until the Publix permitting process is completed. Grand opening dates for all locations will depend on the scope of the remodels and completion of the stores’ construction, Publix said, adding that it will hold job fairs closer to grand opening dates and encourages impacted Martin’s employees to apply for employment." I initially thought it meant they would continue to operate the stores under the Martin's name.

[rwsandiego]

According to today's Baltimore Sun, Ahold-Delhaize is divesting 86 stores. Weis is buying 38 Food Lions in Delaware, Virginia, and Maryland and Supervalu is buying 22 Food Lions to convert to Shop'n'Save.

Baltimore Sun Article

According to a Delhaize press release, the following divestitures are occurring:

New Albertson's, Inc.(part of Albertsons Companies based in Idaho), purchasing 1 Giant Food store in Salisbury, Maryland;

Big Y (based in Massachusetts), purchasing 8 Hannaford stores in eastern Massachusetts;

Publix (based in Florida), purchasing 10 MARTIN'S stores in Richmond, Virginia;

Saubel's Markets (based in Pennsylvania), purchasing 1 Food Lion store in York, Pennsylvania

Supervalu (based in Minnesota), purchasing 22 Food Lion stores in Maryland, Pennsylvania, Virginia and West Virginia;

Tops Markets (based in New York), purchasing 1 Stop & Shop store in Massachusetts as well as 3 Stop & Shop stores and 2 Hannaford stores in New York; and

Weis Markets (based in Pennsylvania), purchasing 38 Food Lion stores in Delaware, Maryland and Virginia.

Press Release

[ValuedCustomer]

Interesting to see Weis going back into markets they had previously abandoned (Virginia and Montgomery County, MD). In the 1990s they used to have locations in the outer N. Va. suburbs (Woodbridge, Centreville, Chantilly and Manassas that I remember) but left the state completely by 2000 or so. The new Va. stores they picked up will put them in Culpepper and Fredericksburg, so they'll be bypassing their old No. Va. territory. On the Maryland side there used to be a Weis that sat right by I-270 in Germantown. Now they're going back into MontCo, PG County and Southern Md. I've heard rumors that Weis was a potential acquisition target for someone (Kroger?) but don't know how much truth there was in that. Interesting to see how this will work out for them.

[pseudo3d]

I wonder what Food Lion's place will be in this new company. The stores are on average much smaller than the Ahold stores. Would they try to make it a full supermarket that could stand up with the rest of the chain, or would they try to expand it through the entire Eastern seaboard as a "budget"/low-end store for all divisions? Or do they want to spin it off later?

[BillyGr]

I wonder what Food Lion's place will be in this new company. The stores are on average much smaller than the Ahold stores. Would they try to make it a full supermarket that could stand up with the rest of the chain, or would they try to expand it through the entire Eastern seaboard as a "budget"/low-end store for all divisions? Or do they want to spin it off later?

Good question. The only thing that was mentioned earlier on (regarding primarily Stop & Shop and Hannaford names in the North and Eastern part of the country) was that those stores would retain their names, which would make sense given the very small overlap of the two chains (note only 14 stores being sold between the two, and in two fairly concentrated areas, Eastern MA and southern NY).

The other chains (the Giant/Giant combo and Food Lion) have a bit more of an overlap, so it's harder to guess what they might do with the two of them. Seems like they could just run them as separate operations (with the Giants being the more "full service" stores and Food Lion being the smaller "convenience" stores), but then they could try to somehow put the two together. Not sure if they would try expanding Food Lion to other areas, after that chain had and then closed the Bottom Dollar stores in much of the area north of their regular markets (up into PA and NJ) fairly recently.

One other thing remains - whatever Martin's labelled stores are not being sold - those it would seem to make sense at some point to redo them as Giant, since the only reason the Martin's name came about years ago was when the two Giant chains were separately owned and as one moved into areas the other was already in (or had advertising in) it got confusing, so they came up with the second (Martin's) name for those areas. Now that both are part of one company it wouldn't (seem) hard to just go to one name, but...

[Knight]

I wonder what Food Lion's place will be in this new company. The stores are on average much smaller than the Ahold stores. Would they try to make it a full supermarket that could stand up with the rest of the chain, or would they try to expand it through the entire Eastern seaboard as a "budget"/low-end store for all divisions? Or do they want to spin it off later?

Food Lion should be a supermarket on par with Giant-Carlisle, Giant-Landover, Hannaford, and Stop & Shop providing the necessities of food and pharmacy, having fresh foods and quality products consistently available, being price competitive with lower prices, and improving in customer service. It has missed many opportunities and failed many times to improve under Delhaize. I guess the failures of Bloom and Bottom Dollar Food and the closure of many stores were not enough to right ship. If it stays its current course, Food Lion will lose battles and stores against better competitors (i.e. Acme, Farm Fresh, Food City, Harris Teeter, Ingle's, Kroger, Publix, Safeway, Walmart) in its footprint.

[mbz321]

One other thing remains - whatever Martin's labelled stores are not being sold - those it would seem to make sense at some point to redo them as Giant, since the only reason the Martin's name came about years ago was when the two Giant chains were separately owned and as one moved into areas the other was already in (or had advertising in) it got confusing, so they came up with the second (Martin's) name for those areas. Now that both are part of one company it wouldn't (seem) hard to just go to one name, but...

I thought Martin's was used in areas close to Giant (MD) stores due to Union issues/agreements (please correct me if I am mistaken). That's probably the only reason why Giant (PA) has retained its distinct logo and other minor things, even though it is now nothing more than a generic Ahold stoer.

[storewanderer]

I feel like Food Lion has accepted they will be low volume and operate with limited fresh departments and limited labor. At least they have fair prices but you are 100% correct running stores they way they do is no way to grow business. All they need to do is look to Hannaford for some good perimeter programs. And those "Giant" Stores (both versions) run such high volume stores...

[Knight]

I doubt any supermarket would want to relegate itself to having low volume stores with limited service departments, limited labor, and extra high prices. Sadly, that is what Food Lion has become. That ship has failed and has sunk. Ahold's personnel should bring in fresh, necessary ideas to turn around Food Lion.

[pseudo3d]

I doubt any supermarket would want to relegate itself to having low volume stores with limited service departments, limited labor, and extra high prices. Sadly, that is what Food Lion has become. That ship has failed and has sunk. Ahold's personnel should bring in fresh, necessary ideas to turn around Food Lion.

Food Lion I feel is too far gone as the concept it was. Their original plan for expansion came at a time when everyone else was building bigger and better in the early 1990s while they were going to build fast, cheap, and small stores with no pharmacy or big service departments but all the essentials. That failed in Texas (and not just because of that ABC report), so they went back to the East Coast.

I think Bloom would've brought fresh ideas to the store but they ended that.

I believe that the only reason Ahold Delhaize still has Food Lion is so they can still use them, either by trying new ideas as a last-ditch to turn the store around, upgrading and rebranding them (or replacing them with other brands in the same market), or if nothing else, as assets to sell off in case trying to save Food Lion goes bad.