Ahold Delhaize creates Ahold Delhaize USA

This is the place for general and miscellaneous posts on topics which might extend past the boundaries of any specific region. No non-grocery posts.
Knight
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Re: Ahold Delhaize creates Ahold Delhaize USA

Post by Knight » December 10th, 2017, 7:23 am

pseudo3d wrote:
December 8th, 2017, 7:10 am
So, it begins.

Will Hannaford get the fruit basket logo, or did only Giant-MD and Stop & Shop get that due to their ill-fated merger?
The fruit basket logo will likely remain limited to Giant Food of Maryland and Stop & Shop.

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Re: Ahold Delhaize creates Ahold Delhaize USA

Post by Knight » December 10th, 2017, 7:38 am

pseudo3d wrote:
December 9th, 2017, 8:48 am
I think only Giant-MD and Stop & Shop share the fruitbowl logo since they were part of the actual same company are. But what I'm looking at most is Food Lion, especially since the vast majority spun off in the merger were Food Lion stores. My expectation was that the remaining stores would be closed as their leases ran out or they might be converted to other names. The exception where that wasn't the case seems to be when the Ahold stores were worth more, like Richmond. The valuable Martin's stores are sold to Publix, but there doesn't seem a way for Food Lion to compete in a market where Publix, Wegmans, Kroger, and of course Walmart operate, so I would expect those to close down. A few months ago, Food Lion announced it would move into Fairfield Shopping Center in Newark, DE where a Super Fresh operated (ACME was to buy it but ultimately passed, likely due to the store's poor physical condition). But that was before this holding company was created, and I would say there's a fair chance that the Super Fresh will reopen not as a Food Lion but as Giant-MD.
Food Lion remains a problematic banner and an opportunity for improvement for Ahold Delhaize USA. It continues to struggle with extra high prices, the lack of food and pharmacy in most stores, and minimal store updates. Its leadership in Salisbury, North Carolina, lacks leadership and direction. It is not surprising many stores divested in the Ahold Delhaize merger were Food Lion stores.

Until Food Lion gets its act together, it will lose battles against supermarkets Farm Fresh, Food City, Harris Teeter, Ingle's, Kroger, Publix, and Walmart Neighborhood Market; hypermarket Walmart Supercenter; and limited assortment/discount grocer Aldi.

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Re: Ahold Delhaize creates Ahold Delhaize USA

Post by BillyGr » December 10th, 2017, 1:36 pm

Knight wrote:
December 10th, 2017, 7:38 am

Food Lion remains a problematic banner and an opportunity for improvement for Ahold Delhaize USA. It continues to struggle with extra high prices, the lack of food and pharmacy in most stores, and minimal store updates.
And that 2nd sentence is funny (particularly the first part) if you know any of the history of the chain.

Probably like many others, once those who started it were gone, those who followed didn't always follow the examples they were given.

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Re: Ahold Delhaize creates Ahold Delhaize USA

Post by pseudo3d » December 11th, 2017, 12:25 pm

BillyGr wrote:
December 10th, 2017, 1:36 pm
Knight wrote:
December 10th, 2017, 7:38 am

Food Lion remains a problematic banner and an opportunity for improvement for Ahold Delhaize USA. It continues to struggle with extra high prices, the lack of food and pharmacy in most stores, and minimal store updates.
And that 2nd sentence is funny (particularly the first part) if you know any of the history of the chain.

Probably like many others, once those who started it were gone, those who followed didn't always follow the examples they were given.
With news that Lidl is interested in leasing new stores instead of solely owning them, I do wonder if Ahold Delhaize might be willing to sell Food Lion stores to Lidl (given the stores are similar in footprint and all).

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Re: Ahold Delhaize creates Ahold Delhaize USA

Post by wnetmacman » December 12th, 2017, 6:18 am

pseudo3d wrote:
December 11th, 2017, 12:25 pm
With news that Lidl is interested in leasing new stores instead of solely owning them, I do wonder if Ahold Delhaize might be willing to sell Food Lion stores to Lidl (given the stores are similar in footprint and all).
My understanding is that Lidl is completely slowing US growth, because things aren't working out as planned. This included stopping several store builds, etc. I would say that's gonna be a hearty NO.

Evidently, Food Lion is doing something right, because they're still around. They aren't shrinking at the same rate as, say Southeastern Grocers.

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Re: Ahold Delhaize creates Ahold Delhaize USA

Post by Knight » December 12th, 2017, 10:18 am

BillyGr wrote:
December 10th, 2017, 1:36 pm
And that 2nd sentence is funny (particularly the first part) if you know any of the history of the chain.

Probably like many others, once those who started it were gone, those who followed didn't always follow the examples they were given.
Food Lion has had issues since Ralph Ketner retired. Most problems risen under Tom E. Smith's regime. Food Lion's competitors improved. Food Lion did not improve.

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Re: Ahold Delhaize creates Ahold Delhaize USA

Post by Knight » December 12th, 2017, 10:20 am

pseudo3d wrote:
December 11th, 2017, 12:25 pm

With news that Lidl is interested in leasing new stores instead of solely owning them, I do wonder if Ahold Delhaize might be willing to sell Food Lion stores to Lidl (given the stores are similar in footprint and all).
Food Lion is a supermarket. Lidl is a limited assortment/discount grocer. Stores switching from Food Lion to Lidl would be a significant change.

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Re: Ahold Delhaize creates Ahold Delhaize USA

Post by mbz321 » December 12th, 2017, 10:22 am

wnetmacman wrote:
December 12th, 2017, 6:18 am

Evidently, Food Lion is doing something right, because they're still around. They aren't shrinking at the same rate as, say Southeastern Grocers.

Yeah, I don't think Food Lion is doing that bad. Their prices are reasonable, and definitely lower than most competitors in the areas in which they operate (really, have you ever seen Publix prices?). Their stores aren't large or fancy, because they really don't have to be. And other extras like in-store Pharmacies seems to be a declining trend. Ahold has converted a couple of Martin's to Food Lion, so the banner must show some promises.

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Re: Ahold Delhaize creates Ahold Delhaize USA

Post by Knight » December 12th, 2017, 10:24 am

wnetmacman wrote:
December 12th, 2017, 6:18 am
My understanding is that Lidl is completely slowing US growth, because things aren't working out as planned. This included stopping several store builds, etc. I would say that's gonna be a hearty NO.

Evidently, Food Lion is doing something right, because they're still around. They aren't shrinking at the same rate as, say Southeastern Grocers.
Food Lion is still around indeed. Being around does not mean Food Lion is doing something right. Food Lion still has problems it has not resolved.

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Re: Ahold Delhaize creates Ahold Delhaize USA

Post by Knight » December 12th, 2017, 10:34 am

mbz321 wrote:
December 12th, 2017, 10:22 am
Yeah, I don't think Food Lion is doing that bad. Their prices are reasonable, and definitely lower than most competitors in the areas in which they operate (really, have you ever seen Publix prices?). Their stores aren't large or fancy, because they really don't have to be. And other extras like in-store Pharmacies seems to be a declining trend. Ahold has converted a couple of Martin's to Food Lion, so the banner must show some promises.
I am yet to see Food Lion stores with reasonable prices lower than its supermarket competitors. Food Lion's prices are higher than Ingle's, Publix, and Walmart Neighborhood Market.

In-store pharmacies is not a declining trend. Harris Teeter, Ingle's, and Publix continue to open pharmacies in non-pharmacy store locations. Southeastern Grocers (BI-LO, Fresco y Más, Harvey's, and Winn-Dixie) has closed pharmacies at store locations in the process of closing.

One Martin's store in Ashland, Virginia, became a replacement Food Lion store. Martin's stores were divested because they would bring in a better return. Food Lion stores have no value. Food Lion exiting the greater Richmond, Virginia, area should not be surprising in the future.

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