Farm Fresh may be on its way out

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Farm Fresh may be on its way out

Post by cathandler »

The day of reckoning for one of Supervalu's troubled banners appears close at hand
https://pilotonline.com/business/consum ... 104ac.html
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Re: Farm Fresh may be on its way out

Post by pseudo3d »

Didn't they already combine Farm Fresh into the Shoppers division?
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Re: Farm Fresh may be on its way out

Post by cathandler »

pseudo3d wrote: February 27th, 2018, 7:36 pm Didn't they already combine Farm Fresh into the Shoppers division?
Last year they combined the merchandising functions of Farm Fresh, Shoppers and Shop 'n Save East, in the process eliminating 21 merchandising jobs at Farm Fresh
https://progressivegrocer.com/shoppers- ... -merch-ops
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Re: Farm Fresh may be on its way out

Post by Knight »

Looking at SuperValu long term, I see it divesting its supermarkets in order to focus on its wholesale operations.

To my understanding, Farm Fresh and Shoppers combined operations and merchandising units. The units also support Shop 'n Save East.

It is possible a quantity of Farm Fresh and Shoppers stores in Virginia, North Carolina, and Maryland could be divested to another supermarket that seeks to enter new markets and increase its store count.
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Re: Farm Fresh may be on its way out

Post by mbz321 »

Knight wrote: March 1st, 2018, 6:56 am Looking at SuperValu long term, I see it divesting its supermarkets in order to focus on its wholesale operations.

To my understanding, Farm Fresh and Shoppers combined operations and merchandising units. The units also support Shop 'n Save East.

It is possible a quantity of Farm Fresh and Shoppers stores in Virginia, North Carolina, and Maryland could be divested to another supermarket that seeks to enter new markets and increase its store count.
*cough* Publix *cough*
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Re: Farm Fresh may be on its way out

Post by Knight »

Publix acquiring a quantity of Farm Fresh (and Shoppers) stores is possible.

I think Publix is speculated for two locations in the City of Virginia Beach.
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Re: Farm Fresh may be on its way out

Post by mjhale »

In my view Shoppers is the weakest of the DC area chain grocers. There have long been rumors that Publix is eyeing the DC area. If Publix went after Shoppers stores whether open or closed how would the issue of the union be handled? Seems to me that is something that Publix wouldn't want to deal with. However there aren't a lot of sites for a large scale grocery in the more affluent DC suburbs. If Publix didn't want to get creative and build in a mixed use development their only option may be cast-offs from other grocers.
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Re: Farm Fresh may be on its way out

Post by Knight »

Unions only negotiate contracts and give authorization to strike. They do not make the decisions when stores close. If a store closed and unionized associates are employed, the associates could transfer to other stores.

Publix remains interested in northern Virginia, the District of Columbia, and Maryland. It needs to increase its store count in Virginia and address long term distribution needs.
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Re: Farm Fresh may be on its way out

Post by klkla »

mjhale wrote: March 2nd, 2018, 5:37 am In my view Shoppers is the weakest of the DC area chain grocers. There have long been rumors that Publix is eyeing the DC area. If Publix went after Shoppers stores whether open or closed how would the issue of the union be handled? Seems to me that is something that Publix wouldn't want to deal with. However there aren't a lot of sites for a large scale grocery in the more affluent DC suburbs. If Publix didn't want to get creative and build in a mixed use development their only option may be cast-offs from other grocers.
It will be interesting to see what if anything Publix does in DC. They are used to working in Right to Take Advantage of Workers states (AKA Right to Work). I don't think DC would fit the bill.

Do they operate in any non RWT states now?
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Re: Farm Fresh may be on its way out

Post by buckguy »

Shoppers has a fairly random distribution of stores and few in the kinds of areas where Publix would do well. If Publix wanted to enter the DC area, they'd have to build from scratch which would be very expensive. They'd also be facing Wegman's for the first the time and they would face much more competition from Whole Foods and Trader Joe's than usual. Harris-Teeter currently occupies something resembling Publix's market niche in the DC area--they don't seem to do huge volumes and the stores are really unimpressive, but they have continued to expand. Publix grew in Atlanta by buying H-T's unsuccessful operation there--I suspect they'd only enter the DC area if they had that kind of opportunity again.
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