Safeway closing McLean, VA- replacing by Lidl

[storewanderer]

https://www.tysonsreporter.com/2021/03/ ... d-by-lidl/

Not a surprise to see Safeway closing yet another store in the Eastern Division.

I think by now Safeway Eastern Division's footprint (without Acme) must be close to only 100 or so stores. Seems like they are becoming less and less relevant in that market. If Publix really gets going, that will probably be the worst news for Safeway Eastern Division yet.

[pseudo3d]

https://www.tysonsreporter.com/2021/03/ ... d-by-lidl/

Not a surprise to see Safeway closing yet another store in the Eastern Division.

I think by now Safeway Eastern Division's footprint (without Acme) must be close to only 100 or so stores. Seems like they are becoming less and less relevant in that market. If Publix really gets going, that will probably be the worst news for Safeway Eastern Division yet.

Anytime a store closes with a replacement ready in the wings makes me think that the issue was based more on the lease coming up for renewal and the landlord's choice than a direct business decision about an unprofitable store.

For what it's worth, Mid-Atlantic Division did open a Safeway last year in the Washington DC, though it was part of a redevelopment that tore down an old store.

[storewanderer]

https://www.tysonsreporter.com/2021/03/ ... d-by-lidl/

Not a surprise to see Safeway closing yet another store in the Eastern Division.

I think by now Safeway Eastern Division's footprint (without Acme) must be close to only 100 or so stores. Seems like they are becoming less and less relevant in that market. If Publix really gets going, that will probably be the worst news for Safeway Eastern Division yet.

Anytime a store closes with a replacement ready in the wings makes me think that the issue was based more on the lease coming up for renewal and the landlord's choice than a direct business decision about an unprofitable store.

For what it's worth, Mid-Atlantic Division did open a Safeway last year in the Washington DC, though it was part of a redevelopment that tore down an old store.

There are a few other examples of them closing in recent years and being replaced by other grocers as well back there in Eastern Division. I think it means the stores are marginal, someone else is willing to pay more for the space, so Safeway ends up being gone as a result. With A&P Super Fresh long gone and Shoppers on the edge, they are the low hanging fruit in that market.

[pseudo3d]

https://www.tysonsreporter.com/2021/03/ ... d-by-lidl/

Not a surprise to see Safeway closing yet another store in the Eastern Division.

I think by now Safeway Eastern Division's footprint (without Acme) must be close to only 100 or so stores. Seems like they are becoming less and less relevant in that market. If Publix really gets going, that will probably be the worst news for Safeway Eastern Division yet.

Anytime a store closes with a replacement ready in the wings makes me think that the issue was based more on the lease coming up for renewal and the landlord's choice than a direct business decision about an unprofitable store.

For what it's worth, Mid-Atlantic Division did open a Safeway last year in the Washington DC, though it was part of a redevelopment that tore down an old store.

There are a few other examples of them closing in recent years and being replaced by other grocers as well back there in Eastern Division. I think it means the stores are marginal, someone else is willing to pay more for the space, so Safeway ends up being gone as a result. With A&P Super Fresh long gone and Shoppers on the edge, they are the low hanging fruit in that market.

Technically, the Eastern Division doesn't exist anymore, the Mid-Atlantic Division is the replacement. But again, being "marginal" in terms of a lease is relative if they want something else, like those two Albertsons getting replaced with Asian markets in SoCal.

When Albertsons closes stores without replacements, with recent examples (in the last five years) being more of the Randalls stores, some former A&P stores, or isolated incidents spread across the divisions, that's when you know the store has a problem.

[storewanderer]

Technically, the Eastern Division doesn't exist anymore, the Mid-Atlantic Division is the replacement. But again, being "marginal" in terms of a lease is relative if they want something else, like those two Albertsons getting replaced with Asian markets in SoCal.

When Albertsons closes stores without replacements, with recent examples (in the last five years) being more of the Randalls stores, some former A&P stores, or isolated incidents spread across the divisions, that's when you know the store has a problem.

When the store is replaced by a low labor discount operator that will probably sell less than Safeway and will certainly employ fewer employees than Safeway, it means the Safeway had a problem.

What happens here is the grocer may have a store that does marginal and intends to keep the store but is not 100% determined they want to keep the store. Since the store is marginal they try to use that as an excuse to lowball the lease. Cite nearby competition, cite the store hasn't been remodeled in 10 years and they want to remodel it but they want a break in the rent to help pay for the remodel. The landlord gets frustrated and goes and shops the building around to other uses who may pay more. The landlord then in turn finds another tenant to take the building and signs with that other tenant essentially sidestepping the grocer. Smaller/regional chains seem to be better at holding onto marginal stores like this. I think the landlords know these national chains have deeper pockets and try to over play their hands.

[pseudo3d]

Technically, the Eastern Division doesn't exist anymore, the Mid-Atlantic Division is the replacement. But again, being "marginal" in terms of a lease is relative if they want something else, like those two Albertsons getting replaced with Asian markets in SoCal.

When Albertsons closes stores without replacements, with recent examples (in the last five years) being more of the Randalls stores, some former A&P stores, or isolated incidents spread across the divisions, that's when you know the store has a problem.

When the store is replaced by a low labor discount operator that will probably sell less than Safeway and will certainly employ fewer employees than Safeway, it means the Safeway had a problem.

What happens here is the grocer may have a store that does marginal and intends to keep the store but is not 100% determined they want to keep the store. Since the store is marginal they try to use that as an excuse to lowball the lease. Cite nearby competition, cite the store hasn't been remodeled in 10 years and they want to remodel it but they want a break in the rent to help pay for the remodel. The landlord gets frustrated and goes and shops the building around to other uses who may pay more. The landlord then in turn finds another tenant to take the building and signs with that other tenant essentially sidestepping the grocer. Smaller/regional chains seem to be better at holding onto marginal stores like this. I think the landlords know these national chains have deeper pockets and try to over play their hands.

Aren't Lidl stores doing fairly well, though and expanding again with a focus on the Northeast? Seems that way, and also seems like a way to attract the "hot" retailer to the space, like with Albertsons in Mandeville (gave way to Whole Foods Market) and with a Winn-Dixie in Florida that got booted for a Lucky's Market (and subsequently moved back in to the much nicer Lucky's Market space).

Clearly whatever concessions Albertsons was willing to do weren't enough to save the store, though, and perhaps that's the takeaway here...

[kr.abs.swy]

I have absolutely no idea if this comment is applicable in this case, but this illustrates one of the dangers of sale-leasebacks, which has been an Albertsons trend over the past few years. You can reduce debt and gain some flexibility, but you also don't control your own destiny any longer.

https://www.tysonsreporter.com/2021/03/ ... d-by-lidl/

Not a surprise to see Safeway closing yet another store in the Eastern Division.

I think by now Safeway Eastern Division's footprint (without Acme) must be close to only 100 or so stores. Seems like they are becoming less and less relevant in that market. If Publix really gets going, that will probably be the worst news for Safeway Eastern Division yet.

Anytime a store closes with a replacement ready in the wings makes me think that the issue was based more on the lease coming up for renewal and the landlord's choice than a direct business decision about an unprofitable store.

For what it's worth, Mid-Atlantic Division did open a Safeway last year in the Washington DC, though it was part of a redevelopment that tore down an old store.

There are a few other examples of them closing in recent years and being replaced by other grocers as well back there in Eastern Division. I think it means the stores are marginal, someone else is willing to pay more for the space, so Safeway ends up being gone as a result. With A&P Super Fresh long gone and Shoppers on the edge, they are the low hanging fruit in that market.

[buckguy]

They have two other stores within a couple of miles and this one must be relatively small if it's going to be replaced by Lidl.

[mjhale]

They have two other stores within a couple of miles and this one must be relatively small if it's going to be replaced by Lidl.

I believe the store that is closing is the original McLean Safeway. Looking at historicaerials.com 1957 is the first where there is a store on this site. The 1962 image shows a barrel roof store which would have been in line with what Safeway was building at the time. The current building is first shown in 1979. I have been in this Safeway before. It is very small as compared to a modern Safeway store. As buckguy said Safeway has stores nearby. There is a modern recent build on Anderson Road as well as one on Old Dominion Drive at Kirby Road. The one on Old Dominion Drive is a marina store. I'm not sure how much they have done in terms of expanding beyond it is original footprint. But it does have the Lifestyle interior based on pictures online.

I'm curious to see how Lidl does in McLean. McLean is one of the most affluent suburbs in Northern Virginia. While Lidl builds very nice stores they are still a discount grocery store. I think that the bakery will be attractive. But the rest of the store is going to have to be on point for what I think people's expectations of it will be. Then again with Safeway gone Lidl's immediate competition will be Giant And Balducci's. Giant is Giant and Balducci's covers the "high end". Lidl might be embraced because it is a much cheaper option but in a package that doesn't necessarily make you feel like you are at a discount grocery store.

[Romr123]

Curious about Lidl's bakery--is it just US bake-off stuff (i.e. the stuff available at any chain supermarket w/a bakery oven) or are they doing European bake-off stuff (probably same quality but...exotic...)...can't imagine they're doing any scratch stuff.