Ahold and Delhaize merger closing at the end of the month

[Knight]

Opening small stores fast and cheap without service departments and essentials did not fail in Texas alone.

Ahold Delhaize needs to seriously learn into operating quality supermarkets with less square footage should it make necessary changes with Food Lion.

[pseudo3d]

Opening small stores fast and cheap without service departments and essentials did not fail in Texas alone.

Ahold Delhaize needs to seriously learn into operating quality supermarkets with less square footage should it make necessary changes with Food Lion.

I don't think the merger was done with the American interests in mind, for starters. In fact, I think the reason in Richmond was done because neither chain was doing particularly well but Martin's had value in being sold while Food Lion did not. I can see the remaining Richmond stores being gone on the next round of Food Lion cuts, and in five years, I can't even see the Food Lion chain being extant, as they are upgraded or replaced in areas where Ahold has other brands, or closed or sold off in other markets.

[Knight]

The Richmond. Virginia, grocery market is changing very quickly. Ahold Delhaize's banners are appearing more likely not to be participants going forward.

Food Lion will face many challenges in North Carolina with supermarkets Publix and Walmart Neighborhood Market and limited assortment/discount grocers Aldi and Lidl. It will be a mess.

[BillyGr]

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.

That could also be - I don't know specifically, just always heard that it had to do with confusion over two chains with the same name.

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.

Or perhaps bring back an old idea - extra LOW prices. After all, that was what turned a small operation into the large Food Lion that now exists - offering the best prices by not having all the extra "services" that cost more and even offering only certain types/brands of items at some points if that allowed them to buy more and get a better deal on them.

In a way, making them more similar to an Aldi, but with a bit more choice of items and "regular" setup rather than the out of the boxes way Aldi runs stores.

[Knight]

Food Lion's competitors had extra lower prices and had necessities that Food Lion lacked. I wonder how that worked out.

[pseudo3d]

Food Lion, I'm afraid, is doomed as a chain.

- The overlapping stores will likely be replaced or expanded with an existing brand.
- It can't be on the same level as other Ahold brands, because they are undersized and not at all like the others. Plus, their spread-out geography makes it hard for them to establish a consistent image.
- They can't compete with ALDI or the upcoming Lidl, because those stores operate on a tight profit margin. "Aldi but with more choice and a few service departments" isn't going to work unless they were undercutting their competitors on price, and slower-moving items (even if it is what customers want) plus high-labor service departments will cut into that.
- In relation to above, radically changing the store format or name is risky, as despite the store's reputation, there's a chance it could do more harm than good.

It's pretty likely that even if FL starts carrying Ahold brands, it's unlikely they'll do anything with the non-core stores (more rural stores unlikely to be hurt by Aldi) if they're turning a profit and are worth more operating as Food Lion stores than being sold off, so the brand will likely continue in its current form for at least a little while, though chances for FL's expansion are slim to none.

[Knight]

I will agree chances of Food Lion expanding, through additional stores and new markets, are slim to none, and is doomed as a chain indeed. It loses battles quickly to other supermarkets, hypermarkets, and limited assortment/discount grocers.

I would hate to think how many Food Lion stores with expiring leases may close as many stores opened in the 1990's are reaching 20 years of operation.

[pseudo3d]

Looking at the list again, it's clear the divestments are mostly Food Lion. The only non-Food Lion divestments are either Hannaford markets or markets where they would make more money with the "real stores" (like Richmond or Salisbury). Ultimately, I think Ahold Delhaize will be a strong Northeastern retailer with little interest in expanding outside those borders.

[veteran+]

Looking at the list again, it's clear the divestments are mostly Food Lion. The only non-Food Lion divestments are either Hannaford markets or markets where they would make more money with the "real stores" (like Richmond or Salisbury). Ultimately, I think Ahold Delhaize will be a strong Northeastern retailer with little interest in expanding outside those borders.

I agree and I think they will be strong as well.

But I think after they take their time to fine tune and grow organically, they will eventually and selectively expand beyond those borders (sort of in a Publix way).

[pseudo3d]

Looking at the list again, it's clear the divestments are mostly Food Lion. The only non-Food Lion divestments are either Hannaford markets or markets where they would make more money with the "real stores" (like Richmond or Salisbury). Ultimately, I think Ahold Delhaize will be a strong Northeastern retailer with little interest in expanding outside those borders.

I agree and I think they will be strong as well.

But I think after they take their time to fine tune and grow organically, they will eventually and selectively expand beyond those borders (sort of in a Publix way).

Well, I don't see Ahold Delhaize as that ambitious. Even before the merger, they weren't growing outside of their core markets.