SpinCo

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.
ClownLoach
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Re: SpinCo

Post by ClownLoach »

Shifting gears, I was in the Central CA coast region last week. What a difference a few years makes.

The two Ralphs in the SLO area are absolutely horrible. SLO finally got a remodel out of their original 2002 decor, if you call new paint letters and aisle hangers a remodel. They left the cut outs on the walls that held the wooden Ralphs ovals and just capped all the lights then painted and stuck on decals and letters. Same old brown checkerboard floor 20+ years old. No new fixtures or cases. I don't think they actually remerchandised the store either. Hands down the cheapest remodel I've seen at a Ralphs since the Alpha-Beta conversions. I didn't go into Los Osos/Baywood but last I saw it still had the old late 1990's Ralphs decor with "bolted" Teal letters and they had only changed to the newer aisle hangers and removed the Marketplace sign outside.

All the Albertsons stores I visited have been remodeled to Colorful Lifestyle and the ones with the old "turned" aisles have been straightened. All looked pretty good overall inside. All got new floors, no concrete conversions (I think these don't work out well in coastal areas due to the high concentration of mineral salts in the soil which leach through the concrete, leaving milky stains that have to be constantly scraped off)

The SLO Ralphs must be the lowest volume unit in the chain and should just close. Los Osos is basically there because nobody else is. Ralphs has no clue what the Central Coast customer wants, they don't have any of the unique local merchandise, and they have given the entire market to Albertsons on a silver platter. They must have done something to drive away the local wineries because they had one small aisle (on reduced height fixturing) of some cheaper local wines from maybe half a dozen wineries. They brilliantly put Oregon wine on an endcap under a custom "Wines of the Central Coast" sign. Only cheap vacuum packed tri tip on the meat case that looked horrible. Tiny produce section in terrible condition, they're not sourcing from the abundance of local growers and everything looked like it was sitting too long in transit. And pricing was absolutely horrific. $9 for butter? Finally the store reeked of rotten meat and fish both during the day and at night (so it wasn't just the emptied out seafood case). For a 2002 or so build store to be in this poor of condition, and smell that bad in such an upscale area it is just shocking they haven't closed.

A decade ago (before the merger) Albertsons was on their way out here. They seem to have divested "extra" stores especially in SLO where a just opened Scolari conversion was jettisoned to Haggen. They didn't buy back into SLO county at all after Haggen went bust.

Now every Albertsons I visited was slam packed with customers and cranking full basket sales. I repeatedly saw $300+ baskets going through for the traditional weekend Central Coast barbecue. If you told me Buellton, Morro Bay, and especially Paso Robles are in the top 25 volume stores in the Albertsons chain I would believe you. Paso might be top 10 and gives the Walmart across the street a run for it's money.

What makes this difference is that Albertsons has embraced the market and customized the assortment to become a truly "local" central coast grocer. All these stores have a massively expanded wine department and carry product from nearly every winery at superb prices. They have large displays of local favorite brands like Taco Works chips and salsa, all the Santa Maria style seasonings, Brian's bread, pinquito beans, and all the others plus the essential Red Oak firewood for grilling. The meat cases are loaded with beef tri tip and racks of beef ribs for Santa Maria style BBQ. The stores are carrying most of the "Pavilions" specialty food SKUs (orange tags) and massively expanded produce departments at least 50% larger than a typical SoCal unit.

The Vons units I visited previously were smaller size and still were customized for the market, but in this area it seems the best facilities have the Albertsons banner. The Santa Barbara Ralphs Fresh Fare was struggling last time I visited and the entire parking lot and storefront was jammed with homeless.

Even the El Rancho/California Fresh IGA stores have picked up; nobody understood the El Rancho name when it first showed up on converted Haggens in Pismo and SLO but they're doing fine now that those stores outside of Solvang use the California Fresh IGA name. They clearly outperform Ralphs in volume too.

In this market if a merger happens every Ralphs should be divested, or if kept converted to Albertsons format and assortment so they can get some sales volume by bringing in the special merchandise this market demands. The Ralphs name and format are cancer in Santa Barbara and SLO counties now. Albertsons has become the king.

If you don't understand what Central Coast cooking is all about, this simple picture tells it all. You couldn't even start this fire if you shopped at Ralphs, nor put anything on it. It's a simple way of cooking that they've been doing for centuries up there. Albertsons is selling cart load after cart load of meat, vegetables and red oak with a couple of cases of wine for about a $300 average basket and that's about every other basket in line with 7 to 8 registers open all day in Paso, Buellton, Morro Bay and even Lompoc. The central coast is my favorite place in the world (eventually I'll retire up there). The smell of all those Red Oak fire pits going all weekend long is addicting. Just wanted to share how the grocery business is going there because it's fascinating to see the rise of Albertsons from worst to first.

Has Kroger (Ralphs) become completely irrelevant outside of LA, Orange, and San Diego counties? I think it has...
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Re: SpinCo

Post by storewanderer »

Do the SLO or LO Ralphs have self checkout yet? Last time I was there they didn't. I really could not figure out what the deal with those two stores is/was. They feel like completely unwanted stores. The SLO one actually picked up some business back during the mess with Albertsons/Haggen and my understanding is its performance has become acceptable since then (before that it was not doing well).

Albertsons was strong on the Central Coast even before the merger. Their early 00's investments in the market really paid off. Aside from SLO they had nice large moderate to high volume stores. Keep in mind Albertsons lost nice 90's/00's large stores in Atascadero and Arroyo Grande (also lost a smaller unit in SLO and a medium size former Scolari's they had just opened up pre-merger in SLO) to Haggen and did not get to recover any of those when Haggen went under as other parties took the stores over. They also lost the Paso Robles Vons (which went to Smart & Final) and the miserable Los Osos Vons which was a joke, both to Haggen.

Ralphs got various Lucky divests on the Central Coast in 1999 and aside from SLO (which they rebuilt from a small poor Lucky) and LO (which was an under construction Lucky divested to them so Albertsons could keep Morro Bay), most folded quickly and were never remodeled. There were former Lucky/divested to Ralphs in Arroyo Grande, Atascadero, and Paso Robles. Paso Robles actually stayed open quite a while (longer than the rest of NorCal- I think it was a NorCal Ralphs but may be wrong) but Scolari's owned that real estate and decided they wanted to open their own store again in Paso Robles or maybe they knew Ralphs wasn't going to renew its lease, so they took the Ralphs, did a very major remodel, and opened a store there for a few years before they decided to pull the plug on their CA operation entirely and sell all of that real estate, now Paso Robles has 2 Smart & Finals one being the former Vons and the other being the former Lucky/Ralphs/Scolari's so that is now you get to such a high volume Albertsons.

As far as Vons goes, Atascadero Vons is a solid store (since the Albertsons there got divested and was not re-claimed), SLO has a large modern Vons, and Grover Beach has a high volume giant Vons in a former Smiths.
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Re: SpinCo

Post by ClownLoach »

storewanderer wrote: June 14th, 2023, 1:05 am Do the SLO or LO Ralphs have self checkout yet? Last time I was there they didn't. I really could not figure out what the deal with those two stores is/was. They feel like completely unwanted stores. The SLO one actually picked up some business back during the mess with Albertsons/Haggen and my understanding is its performance has become acceptable since then (before that it was not doing well).

Albertsons was strong on the Central Coast even before the merger. Their early 00's investments in the market really paid off. Aside from SLO they had nice large moderate to high volume stores. Keep in mind Albertsons lost nice 90's/00's large stores in Atascadero and Arroyo Grande (also lost a smaller unit in SLO and a medium size former Scolari's they had just opened up pre-merger in SLO) to Haggen and did not get to recover any of those when Haggen went under as other parties took the stores over. They also lost the Paso Robles Vons (which went to Smart & Final) and the miserable Los Osos Vons which was a joke, both to Haggen.

Ralphs got various Lucky divests on the Central Coast in 1999 and aside from SLO (which they rebuilt from a small poor Lucky) and LO (which was an under construction Lucky divested to them so Albertsons could keep Morro Bay), most folded quickly and were never remodeled. There were former Lucky/divested to Ralphs in Arroyo Grande, Atascadero, and Paso Robles. Paso Robles actually stayed open quite a while (longer than the rest of NorCal- I think it was a NorCal Ralphs but may be wrong) but Scolari's owned that real estate and decided they wanted to open their own store again in Paso Robles or maybe they knew Ralphs wasn't going to renew its lease, so they took the Ralphs, did a very major remodel, and opened a store there for a few years before they decided to pull the plug on their CA operation entirely and sell all of that real estate, now Paso Robles has 2 Smart & Finals one being the former Vons and the other being the former Lucky/Ralphs/Scolari's so that is now you get to such a high volume Albertsons.

As far as Vons goes, Atascadero Vons is a solid store (since the Albertsons there got divested and was not re-claimed), SLO has a large modern Vons, and Grover Beach has a high volume giant Vons in a former Smiths.
Self checkout is a problem up there because everyone buys wine. The wine sales at these stores are incredible. I don't remember seeing self checkout at the SLO Ralphs although there was a large open space where they could add them. I'll have to visit the few Vons up there next trip. The SLO Costco self checkouts are basically sitting with maybe one customer using one occasionally. That is yet another massive wine sales store and they're not even trying to get customers over to the self checkout like they do at regular Costco stores.

It is apparent that something needs to change with this self checkout liquor law in California as retailers continue to shift their operations at the front end. Costco for example basically uses their self checkout units as express lanes; it is rare that I approach one and actually get to ring my own items. More often an employee grabs the cart and scans everything with a wireless scanner. But if you had a bottle of wine then the register has to kick out the order because of the law. As we see more retailers shift to installing self checkout kiosks for everything and then manning them for "assisted checkout" the definition of self checkout becomes vague. Basically we are at the point where the retailers seem they would like to change to the self checkout type fixtures (like Walmart does in their remodels, leaving only a couple of traditional lanes), but then they have to block out liquor sales because of what? The configuration of the check stand? Meanwhile Amazon isn't using a physical checkstand at all so they can get away with self checkout of liquor? The dumb law needs to get revised so these stores can operate more effectively. They're basically putting these stores like the Central Coast area in a bad position where they must add more labor to staff more full service lanes and as such they are likely to be hesitant to add/maintain store counts causing communities to become underserved despite rapid growth in the area. It's definitely reducing competition and ultimately will send more customers to delivery services like Amazon when stores are too crowded since they can't/won't add another unit across town where it's needed. The self checkout should allow liquor, and it should be where a customer scans liquor and the Register halts for an employee to finish the transaction. The employee handles the cart similar to how Costco operates, once they're over they can check ID (maybe even scan it to ensure authenticity if the state wants that) and then scan all the liquor items, then turn back to customer mode and let them finish the transaction. I wouldn't be surprised if this is why Albertsons didn't buy back the divested stores as they probably run a much higher labor percentage up there due to the fact that it seems 90%+ of transactions are ineligible for self checkout.

I was staying at the Embassy Suites in the same center as the SLO Ralphs and I can tell you it wasn't busy at all whether morning, afternoon or evening, weekday or weekend. To add to this some genius at Ralphs ordered up 3 of the parking lot mobile security camera rig trailers and plopped two of them in the front parking lot and one behind the store right against the off-ramp for Madonna Rd. They basically give the impression that this must be an unsafe place to visit with the blinking blue police lights on top. If it had picked up business after the Haggen debacle I'm sure it has lost it all.

I have shopped the former Scolari in Paso (it was a nice store and seemed busy enough) as well as the Arroyo Grande former Albertsons (it did not seem to do much business for such a large box and had removed many gondolas to create double wide valleys for stack outs to reduce inventory levels).

Again it seems like Ralphs is just sitting on these buildings and paying the rent, they probably break even due to little/no labor and light inventory. Albertsons just rules the world up there.

I don't get the impression that Smart and Final does any volume at all, but I also wonder if some of the stores they acquired have owned real estate? That would make a big difference and enable them to keep the doors open with no volume. They ruined that newer SLO Scolari-Albertsons-Haggen store and last couple times I was in I was the only customer. (That was always an interesting store - unpainted cinder block walls yet somehow it felt classy as Scolari and Albertsons).

To sum it up, we visited a very high end Paso winery and folks at the next table were asking where their more pedestrian wines were sold (besides the winery, which was selling only "Reserve" higher end bottles). A lady asked if they sell at Ralphs and the sommelier laughed and said "they don't have our product, they don't really sell much wine at all. Go to Albertsons."
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Re: SpinCo

Post by storewanderer »

The group who took the former Scolari's in Pismo Beach did a very heavy remodel to it and it is not recognizable. The current operator has done a great job with it. They were supposed to take the Los Osos Haggen (Vons) but maybe that never happened? As Scolari's it was a pretty outdated large-ish place, it was a former William Bros. or something but basically reminded me of an outdated Vons.
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The SLO Scolari's was a flagship store of sorts for the chain with a different logo and a very customized layout/interior. Albertsons LLC put up the Albertsons LLC decor but really didn't change much in there from how Scolari's had it laid out. That was a nice well maintained store and I was surprised Scolari's let it go but that was a market exit/asset sale after the father Scolari died who lived on the central coast and was watching those stores and real estate was sold with the stores.


The Goleta Ralphs was a Scolari's but they lost the lease there and Ralphs demolished their store and put up their own store. Paso situation happened a few years after that. I think Scolari's did better at selling groceries on the central coast than they did up in Nevada toward the 2010 period, but the slot machine operations kept/keep the Nevada Stores going for many years longer than they otherwise would have.


Ralphs has had a lot of chances to make Central Coast work. They could have taken some Haggen castoffs but failed to do so. Paso Robles was a no brainer they should have taken- that Vons was a solid store- I cannot believe Smart & Final ended up with it. They could have built stores of their own but did not. Arroyo Grande Albertsons was another store they could have taken and even done FoodsCo to- instead they let a C&S franchise F4L operator (Stockton F4L I think) get it. One miss after another there.

I think Ralphs is still somewhat bright around Palm Springs despite some closure activity there.
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