Consistency of Raley's Stores versus Safeway

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lake
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Consistency of Raley's Stores versus Safeway

Post by lake »

Here's the thing... almost every Safeway in NorCal looks exactly the same and most have the same layout.
They look like this- https://c2.staticflickr.com/4/3930/1519 ... 9194_b.jpg
And at the worst, they look like this- http://static.wixstatic.com/media/b2750 ... ea.jpg_256
Since these designs are so similar, the average consumer will feel just at home with any Safeway location in NorCal.

On the other hand, Raley's stores can differ wildly.
You can have stores that still have neon- https://s3-media4.fl.yelpcdn.com/bphoto ... EiLw/o.jpg (Granted this store was just remodeled and looks great- https://scontent.fsnc1-1.fna.fbcdn.net/ ... e=58576A99)

You can have stores that look just out of the 80s. - https://s3-media4.fl.yelpcdn.com/bphoto ... l2og/o.jpg

You can have stores from the late 90s/early 2000s that are beginning to show their age- https://scontent.fsnc1-1.fna.fbcdn.net/ ... e=585BADEC

There's those "Brown" stores from the mid to late 00s. - http://www.ewbinc.com/wp-content/upload ... rior26.jpg

And finally there's the new format that they are currently converting 3-4 at a time to. - http://cdscandoit.com/wp-content/upload ... 24x768.jpg
http://cdscandoit.com/wp-content/upload ... AWNING.jpg

For the average consumer, it's a game of roulette as to which type of Raley's they're going to get and when there's a Safeway across the street that is guaranteed to be the same consistent store they're used to, why bother with Raley's?
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Re: Safeway Twitter

Post by pseudo3d »

lake wrote:Here's the thing... almost every Safeway in NorCal looks exactly the same and most have the same layout.
They look like this- https://c2.staticflickr.com/4/3930/1519 ... 9194_b.jpg
And at the worst, they look like this- http://static.wixstatic.com/media/b2750 ... ea.jpg_256
Since these designs are so similar, the average consumer will feel just at home with any Safeway location in NorCal.

On the other hand, Raley's stores can differ wildly.
You can have stores that still have neon- https://s3-media4.fl.yelpcdn.com/bphoto ... EiLw/o.jpg (Granted this store was just remodeled and looks great- https://scontent.fsnc1-1.fna.fbcdn.net/ ... e=58576A99)

You can have stores that look just out of the 80s. - https://s3-media4.fl.yelpcdn.com/bphoto ... l2og/o.jpg

You can have stores from the late 90s/early 2000s that are beginning to show their age- https://scontent.fsnc1-1.fna.fbcdn.net/ ... e=585BADEC

There's those "Brown" stores from the mid to late 00s. - http://www.ewbinc.com/wp-content/upload ... rior26.jpg

And finally there's the new format that they are currently converting 3-4 at a time to. - http://cdscandoit.com/wp-content/upload ... 24x768.jpg
http://cdscandoit.com/wp-content/upload ... AWNING.jpg

For the average consumer, it's a game of roulette as to which type of Raley's they're going to get and when there's a Safeway across the street that is guaranteed to be the same consistent store they're used to, why bother with Raley's?
Because most people are not like us, finding different types of stores of the same brand and talking about them. They are generally going to live in one area, go to a small group of different chains, and not fret over décor choices being different. From everything I've read, customers care about selection, price, service, and quality of the food, with décor taking a backseat to that. If Raley's can play those games with every Safeway they compete with on those aspects, they will eventually win, even if every store looks different.

Albertsons and its brands have many décor packages floating around, but I assure you, that is the least of their problems.
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Re: Safeway Twitter

Post by storewanderer »

lake wrote:Here's the thing... when I (or any other NorCal shopper) walk into a NorCal division Safeway, I know exactly what to expect. I expect some iteration of the Lifestyle design. I expect the floral to be in front of the produce, the deli to be opposite of the floral, the meat to be in the rear, and etc. Most of the time (save a few oddball stores such as the Sunvalley store) a consumer can base their knowledge of their home Safeway store and navigate any other NorCal division Safeway with comfort and ease. The same is even true for a majority of SaveMart locations.

When a consumer walks into a Raley's they have no idea what to expect. Even stores built in the same era (Quality of Life stores) can have completely different layouts. In fact out the 40+ locations I've been to, the only locations I can confidently say are exactly the same are the Douglas Blvd Roseville store and the Sun Valley,NV store. Sure some BelAir stores are extremely close, but not exact. Even a different color paint can throw a consumer off and make them feel uncomfortable. If my home store is Benicia and I walk into the Antioch store, I'm going to be disappointed. In the future I probably won't go to Raley's stores other than my own in Benicia in case they are as bad as the Antioch one. On the other hand, if my store is Antioch and I go to the Benicia store, I'm going to feel like I'm getting ripped off with my store. My trust in the Raley's brand will lower.

Really what they need is consistency. Even if their layouts aren't the same, if they have similar design then customers are going to feel comfortable in their stores. People have a natural tendency of liking familiar things. If they can build consistency then they have built a brand. Not every remodeled store has to have the hot foods (not all of them do actually) and not every store has to be high volume. But when the lowest volume Safeway looks exactly like the highest volume Safeway, it builds a brand. Did they make a mistake choosing such expensive remodels? Possibly. But if they can pull it off, then they have an extremely strong brand. Raley's has a TON of money in their reserves and can do this right, and it seems like they are making progress in doing this under the new ownership/leadership.

As for the Reno stores, low volume stores can make money. Raley's is not one to leave stores open just because they don't want to isolate other stores. They've isolated stores in the past (Yreka, Elko, Oakhurst, Ukiah) and don't seem to have a problem with it. They may not be as strong as Smith's but they certainly make enough money to justify keeping the lights on. Reno is about to experience a significant increase in wealth (Tesla is going to completely change things up there) that can only help the upper middle class/upper class demographic Raley's does well with. If they can prepare for this influx of people with well kept and updated stores then they will beat Smith's in getting these customers.
The Tesla project is very speculative. Every major chain had its people on the ground here scouting new locations after that announcement. So far the plant has not produced as many jobs as expected but we will see how it does next year as it is built out and gets going better. I think the PR helped bring some other companies into the area, though. It is really difficult for these chains to justify investment in this market because it is saturated with stores, despite a lot of store closure activity in the region, and even after closures, many grocery stores in this region are doing little more than $300,000 a week in sales, and Wal Mart has a really heavy presence here with extremely high volume stores (all Supercenters). WinCo also has two very high volume stores here and I am sure eventually we will see them add a store somewhere; North Reno one is easily a $2 million a week store, I doubt South Reno even does half that but it is still good volume.

Raleys competes directly with Smiths in Sparks a solidly middle class area (low volume Raleys vs. medium volume Smiths), North Reno a lower middle class to middle class area (low low volume Raleys vs. high volume Smiths), and Gardnerville (both medium volume Raleys and medium volume Smiths). The other 3 Smiths don't really compete with Raleys. Raleys main competitor in this market is Save Mart. Oddly I have noticed the Raleys here that are medium volume or high volume are almost all located in very close proximity to a Save Mart, typically in middle to upper middle class areas. Coincidence?

I think there are limited additional expansion opportunities in this market for Raleys with its catering to middle and upper middle class customers; there are only so many of those customers here and even if Tesla brings a bunch more of them in, there is excess capacity at present to serve them. I think there are a lot more expansion opportunities here for Smiths and WinCo who are discount operators but have done very well attracting a middle and even upper middle class demographic in South Reno (a part of town both Safeway and Scolaris have failed in), there are a lot more lower middle class to middle class people here, and both of them pull product from Utah and Idaho, and have far lower costs vs. the California chains as a result.

I think the Sun Valley Raleys you refer to is the North Hills Store I am referring to. The only grocer in Sun Valley is a Scolaris that is a real trip back in time. What is funny is I've been to a ton of Raleys that have that store floorplan/layout as North Hills: Carson City, Fallon (closed), Chico South, Vallejo, Elko had it pre-remodel/downsize, Oroville... I always thought that was Raleys "prototype" back in the 80's for their superstores.
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Re: Safeway Twitter

Post by lake »

storewanderer wrote:
I think the Sun Valley Raleys you refer to is the North Hills Store I am referring to. The only grocer in Sun Valley is a Scolaris that is a real trip back in time. What is funny is I've been to a ton of Raleys that have that store floorplan/layout as North Hills: Carson City, Fallon (closed), Chico South, Vallejo, Elko had it pre-remodel/downsize, Oroville... I always thought that was Raleys "prototype" back in the 80's for their superstores.
Correct, that store is the 80s prototype and many stores originally opened with that design. Some stores I've visited with the same original design include Granite Bay, Suisun City, Red Bluff, Folsom Central, Loomis, and a ton others. Over the years many of these stores have been altered ways that even if they are generally the same, there are a few major differences such as overhead 3-D canopy displays, layout, floors, etc. When I made that comparison I was saying that that's the only occurrence when the stores have been exactly, and I mean exactly the same. Same layout, floors, paint, everything. These two stores both got a very half done "Brown" remodel that included new shelving, an updated Peet's, and sporadic wood flooring in the deli/pharmacy area. I don't know when the Nevada store got this done, but the Roseville store had this done when the Target in the same center added groceries in 2008ish. They still maintain much of the Quality of Life design like the walls and floors though.

Of those stores you mentioned, Chico South actually just got the remodel at the same time as the other Chico store which is a good plan since there won't be a huge discrepancy in store quality. There are about 15 of those superstores concepts left in the "Quality of Life" design like the North Hills store and that number is rapidly declining. I'd say over half of Raley's stores are from that era, but most have either been closed or renovated to the "Brown" store or more recently to the "Living Local" design.
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Re: Safeway Twitter

Post by storewanderer »

There's another Reno Store in that Quality of Life design on Robb Drive which was a new build in maybe 2005, it opened at the same time as the Smiths on South Meadows.

Smiths did a light remodel, the Raley's is untouched but still looks good. Just a very spartan perimeter. That's a solidly medium volume Raley's, thanks in part to a nearby Scolaris closure and more in part to a Safeway nearby which was oncr VERY high volume that has been laughably poorly run over the past 5+ years, and thanks in part to Save Mart being a complete flop in NW Reno with what had been a pretty popular Albertsons.

Perhaps the most surprising Quality of Life store to me is the one in the casino area of South Lake Tahoe. That one just had its nutrition department broken up and widened aisles throughout the store (cut out some non food). That's such a showplace store I'd expect it to have been one of the first to get the new interior.

I've been told some of these Raley's in really old buildings cannot be easily remodeled into the new format.. that may explain the Reno Keystone Store and that S. Tahoe one...

North Hills is still 100 percent Quality of Life, and not aging too great. The Brown stores in Nevada are Incline Village, Reno Mayberry, both Sparks Stores, Carson City, and Gardnerville. I think the brown stores would be a lot nicer without the dark ceiling.
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Re: Safeway Twitter

Post by lake »

It surprised me too that the South Lake store has not been touched, it does very high volume and is actually the only Raley's store to be open until midnight. It is also one of Raley's oldest stores so I would guess you're right in that it would simply cost too much or could even be impossible to remodel. That is why they're relocating their Land Park Sacramento store as I believe that is their #1 volume store also in a very old location.

Another instance of this age problem is the Bel Air ( it's probably the only Raley's store to be on national TV too ) in Roseville/Citrus Heights. It is an early 80s build store and recently underwent a very interesting "Living Local" remodel. They did everything except the walls. New signage, floors, shelves, produce displays, even ceiling, but they have not touched the walls and it's been months since the remodel was complete. The store doesn't look terrible, and the late 90s design is in pretty decent shape, but it just looks mismatched. Meanwhile, the Bel Air across town got a very expensive complete "Living Local" remodel despite it being built around the same time period (I believe mid 80s.)
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Re: Safeway Twitter

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That South Lake Tahoe Store has done hours as late as 2 AM and even some 24 hour stretches during summers. That store is run interestingly. It has had a hot food (chinese) self serve bar and salad bar for at least a decade. The salad bar at once point was closed completely, as of the past few months it is open again but only open a few days a week (????). More recently they also changed their payment policy and now require all deli items to be paid at the front checkstands (but if you are buying coffee or a sandwich they will still ring that up at the coffee counter). It is a bit of a walk between the deli area and checkstands. These are the sorts of things that make me pause and wonder about Raleys. Install a small salad bar in a high volume store and don't even operate it every day? Store management says it is due to waste. How much does it really cost to put those ingredients out? This is a very small salad bar.

This not wanting to fill perimeter departments up is a real problem with Raleys in this area and its Reno-based district management. I think they are shooting themselves in the foot with their attempts to control waste and losing sales as a result. I believe this is the result of stores that are struggling from a sales and profit standpoint and rather than doing things that will help grow the business they are just trying to cut expenses/cut shrink. A full perimeter sells better than an empty one and when I go into some of the high volume Raleys down in Sacramento, Roseville, and Elk Grove and see how full those perimeters are vs. the stores up here around Reno... it is really like night and day. The Tahoe Stores are all very high volume so I would expect them to have nice full perimeters like the Sacramento stores, but they don't.

Raleys needs to start filling up its perimeters. They have some excellent products; best in class quality-wise, and generally well prepared and well presented. Do a markdown program like Kroger does to mark down stuff a day or two before it expires and fill up those perimeters. This helps reduce shrink, encourages trial of items, and can create future sales if the customer likes what they tried. It may lose the sale of a full price item every now and then but my general observation is there is a lot more impulse buying of markdown items going on at Kroger than people trading down to the markdown items from a full price item.
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Re: Safeway Twitter

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On the subject of understocked perimeters at Raleys: here is the Sparks Store: this is the most drastic example of poorly stocked perimeters I have ever seen at a Raleys but the majority of the Nevada Stores really don't look much better, very minimal amount of product spread out very thin is the norm at all but a couple of the stores.

At least this isn't as bad as the Save Mart down in South Carson City who closed its bakery department and filled the old refrigeration up with a few thaw and serve items and also cut flowers...

Also this Sparks Raleys was offering a large display of Market Essentials case water up front near the closed Bank of America branch which is still set up in frame form but closed (which is next to the closed video rental department which is also still set up in frame form, the closed customer service counter which was partially disassembled, closed slot machine area which was fully disassembled, and another tenant space that never did get filled). I wonder if they are planning to offer that brand (it says distro by Save Mart on it) or it is just a mispick from the shared distribution center.

The below store was built in the mid-late 1990's and opened with a white wall/colored box shape letter interior. It replaced a much older store down the street. It got this remodel sometime in the past 10 or so years. As can be seen here this was a VERY in depth remodel- complete replacement of flooring, walls, and a lot of the refrigeration. Also a clearly underperforming store. Why they spent so much remodeling it is a mystery to me.

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This produce area has looked like this for well over a year now, though it previously housed home decor items which seem to have been clearanced. The other side of it has a single layer of watermelons.

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This is one of 2 coffin chilled meat/seafood prepack cases. Well, was. They took the case out sometime in the past year or so. I wonder why they took this case out yet keep the produce case that has not been used for even longer in?

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This service meat/seafood area fills part of its case with bottles of wine. They also had some "whole in the bag pork shoulder" in there. Not real in line with an "upper middle class" store...

And this sort of thing is why Smiths has been able to gain such strength against Raleys. Smiths Stores in Reno used to be quite like this, but also add dirty to the mix. They really got it together in the past 5-10 years here (and their first move was to fix pricing). They fully merchandise their stores now. They have a large mix of perishables. Even if they have lower quality (in some cases significantly lower quality) perishables, the fact that their stores are stocked fully, products turn faster due to more customers so products are fresher which masks the lower quality to some extent (Raleys bread may taste better if it is fresh, but when it is a day old due to lack of turn and Smiths bread is 4 hours old the Smiths one tastes better), stores are staffed with a lot more bodies since the stores are busier creating a better service level...
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Re: Safeway Twitter

Post by veteran+ »

Wow..........that is one sad store.

I would be so embarrassed to have that store in my district (much less work in it).

IMO.............one store in a chain, like this store, advertises to the world "we are incompetent" in a very loud voice! Regardless of how wonderful the other stores in the chain may be............this store says it all.

So many times companies do not seem to understand (but they have all sorts of excuses) that ONE store often times can become the ambassador for the entire chain. At the very least, it exposes the company's weaknesses.
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Re: Safeway Twitter

Post by lake »

Wow, that is truly terrible. I wonder if it also has to do with distribution a bit because even low volume stores in Sacramento (Citrus Heights for instance) do not look like this at all. Then again, not even Winnemucca looked like that. I would bet that Raley's is much more complacent with waste in their Sacramento stores as it's pretty cheap to send a truck from Natomas to a Sacramento store, but sending a truck from Natomas to Reno is pretty pricey. It would make sense if they would find a third party distributor up in Reno for some items to control their prices. Smith's has a big advantage over Safeway, Raley's, and SaveMart that they do not supply their Reno stores from California.

Also, I was playing around on the Raley's Sparks Facebook page and found their post about how much money in SomethingExtra vouchers they gave away. Although there are tons of factors that alter this, I've found this is the easiest way to tell a volume of the store. Most Raley's give somewhere around $300,000 to $500,000 per store in SomethingExtra vouchers. The top stores (Land Park, Natomas, Redwood Shores) give away around $1,000,000. This store gave away $140,000. Even Winnemucca was above that.

Have they kept the Sizzling Wok and Peet's open at this location? I know Raley's has a habit of closing those down if they don't do any business.
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