Crucial times for Shoppers

Delaware, Maryland, Pennsylvania, Virginia, and West Virginia. No non-grocery posts.
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BillyGr
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Re: Crucial times for Shoppers

Post by BillyGr » October 21st, 2016, 11:26 am

pseudo3d wrote:C&S, I don't think, owns very many stores anymore. They bought Grand Union after its bankruptcy and slowly sold off the chain (216 to 21, and you thought Albertsons LLC did a number on their chain).
And those last 21 stores (OK, 20) are now Tops markets - the only remaining store with the Grand Union name (as far as I know) is in Millerton, NY, and that was only due to issues with Hannaford wanting to build there and not being able to get approved.
pseudo3d wrote:I can't imagine any of the Shoppers stores being particularly high-volume enough that Wakefern or its associates would want to buy them. They only bought maybe a dozen A&P/Pathmark stores, most of them Pathmark.
The question is, would a name like ShopRite make them higher volume? Those stores seem to do well most places, and there are some in MD already (including at least one that opened in an old Kmart building so with no sales to start with), plus there are people who know of the chain (like mjhale) who would likely shop there if one was available.
pseudo3d wrote: However, while C&S did tend to sell to its own customers (they do have a pretty sweet deal with Ahold Delhaize)
Must be just the Ahold portion (or possibly Food Lion end)? - I know the Hannaford part has their own warehouses (including one just up the road and one in Maine)? Not sure what, if any, changes may occur now that they are co-owners.

pseudo3d
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Re: Crucial times for Shoppers

Post by pseudo3d » October 21st, 2016, 3:10 pm

BillyGr wrote: The question is, would a name like ShopRite make them higher volume? Those stores seem to do well most places, and there are some in MD already (including at least one that opened in an old Kmart building so with no sales to start with), plus there are people who know of the chain (like mjhale) who would likely shop there if one was available.
Kind of a different thing. If Kmart was better managed, that would probably still be a Kmart today, because from the sounds of it, it's still a good location from that point. Older grocery stores are less likely...

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Re: Crucial times for Shoppers

Post by pseudo3d » April 5th, 2017, 9:10 am

Looks like Shoppers and Farm Fresh are now one division, along with those acquired Food Lion stores.

http://www.supermarketnews.com/retail-f ... ail-chains

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Re: Crucial times for Shoppers

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

I wonder if the consolidation of Shoppers, Fresh Farm, and Shop n' Save East sets up the banners for a possible spin-off or divestiture.

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Re: Crucial times for Shoppers

Post by pseudo3d » April 10th, 2017, 2:21 pm

Knight wrote:I wonder if the consolidation of Shoppers, Fresh Farm, and Shop n' Save East sets up the banners for a possible spin-off or divestiture.
I can't think of a single chain (Publix, Albertsons, Kroger, Ahold Delhaize) that would be interested in the whole set, though combining the chains makes it more convenient for SuperValu whittle it down to interested parties.

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Re: Crucial times for Shoppers

Post by Knight » April 16th, 2017, 9:17 pm

Several Food Lion stores recently became Shop n' Save East. It would be illogical for Ahold Delhaize to re-acquire many shoddy former Food Lion stores.

Publix will show interest in acquiring a quantity of quality stores. It would be selective on Farm Fresh and Shoppers stores it could acquire in Virginia and Maryland.

Kroger would likely open Kroger Marketplace hypermarket stores through its Mid-Atlantic Division.

I do not know what Albertson's has planned for its Eastern and Acme divisions.

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Re: Crucial times for Shoppers

Post by pseudo3d » April 26th, 2017, 10:03 am

SuperValu is making another rumble about its retail division.

http://www.supermarketnews.com/retail-f ... -struggles

- They're putting capital into Hornbacher's/Cub Foods and will add new stores. While it's nice not to see them just sit by while Hy-Vee continues to dig into the Twin Cities, it could also mean that SuperValu's end goal is selling off the chain and are just making it more attractive to suitors.
- They mention that Shop n Save East (Food Lion) was performing "below expectations" sales-wise. Show of hands, anyone actually surprised at this?
- It is mentioned that SuperValu has recently acquired a Harrisburg, Pa. warehouse. I want to say it was acquired from C&S (didn't they have a DC there?) but I can't find anything. It is to functionally replace Lancaster, since Albertsons is taking back its ACME warehouse.
- They mention that underperforming stores will be "sold" (as opposed to "closed") but I doubt that any big grocers would want to take on failed stores.
- They still brag about acquiring Marsh's account, even as the wheels start to fall off that chain. Speaking of which, we get this intriguing little comment:
Asked by an analyst about Marsh’s financial deterioration, Gross said, “Marsh is paying our bills on time, period,” and declined to comment further, other than to say it would be able to manage through whatever loss in volume it incurs.

...which means SuperValu isn't particularly confident in Marsh's future. If SuperValu has that much tied up in Marsh, then there's a chance that they'll get it when it goes bankrupt, but the comment speaks otherwise.
- Despite the major spin-off of SAL, they're losing more money from ending the Albertsons contract then they're gaining from the SAL contract, and the SAL contract is at the beginning of its lifespan.

storewanderer
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Re: Crucial times for Shoppers

Post by storewanderer » April 27th, 2017, 5:19 am

Supervalu is in a flux right now as they are acquiring Unified and gaining more wholesale. They need the next year or two to get that end of the business straightened out. For now, they probably need to keep their retail operations in order to help the supply side. Once they buy Unified, that may not be so important anymore...

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Re: Crucial times for Shoppers

Post by pseudo3d » April 27th, 2017, 11:33 am

storewanderer wrote:Supervalu is in a flux right now as they are acquiring Unified and gaining more wholesale. They need the next year or two to get that end of the business straightened out. For now, they probably need to keep their retail operations in order to help the supply side. Once they buy Unified, that may not be so important anymore...


Right, but their finances are in questionable shape, they sold Save-a-Lot for $1.37B but then turned around and bought Unified for $114M, including $262M in debt...and if finances weren't a big issue they wouldn't still be worrying about the retail side after selling SAL, even as they start flagging. The consolidation of Farm Fresh/Shoppers/SnS East was clearly a cost-cutting move and they seem to be ready for a round of store closures in that division based upon what they said, and I'm sure they would probably sell the better stores if Publix, Albertsons, or Kroger came knocking at the right price.

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Re: Crucial times for Shoppers

Post by Knight » April 29th, 2017, 1:08 am

pseudo3d wrote:SuperValu is making another rumble about its retail division.

http://www.supermarketnews.com/retail-f ... -struggles

- They're putting capital into Hornbacher's/Cub Foods and will add new stores. While it's nice not to see them just sit by while Hy-Vee continues to dig into the Twin Cities, it could also mean that SuperValu's end goal is selling off the chain and are just making it more attractive to suitors.
- They mention that Shop n Save East (Food Lion) was performing "below expectations" sales-wise. Show of hands, anyone actually surprised at this?


SuperValu selling or spinning off its retail banners is possible.

Food Lion stores that are now Shop n' Save East stores and are performing "below expectations" should not be a surprise. I wonder how many Food Lion stores continue to perform "below expectations."

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