HCal wrote: ↑February 2nd, 2024, 11:50 pm
retailfanmitchell019 wrote: ↑February 2nd, 2024, 11:22 pm
A Save Mart merger would make sense, being that both chains have a joint venture for private label, Super Store Industries. What banner would you use assuming both were to merge? Raley’s has a better reputation.
Why do you need to pick one? They are both relatively unknown outside their service areas, which have little overlap. Perhaps Save Mart stores in the Sacramento area could be rebranded, but that's about it. I wouldn't introduce the Raley's name to the bay area Lucky stores or to the central valley.
I would hate to see Raley's get snapped up by some larger supermarket operator, or heaven forbid, a private equity group. If they don't stay independent, I think a merger with Stater might be the best option. No antitrust issues whatsoever, and both already use Topco. I would have favored a merger with Save Mart, but not sure I trust Kingswood in the long term.
I'd remove the Save Mart banner from Reno and Sacramento and keep Raleys banner in those markets. Probably flip some additional Save Mart locations to the Food Maxx banner instead of Raleys banner.
Probably wouldn't touch banners in the bay area- it is a mess with Raleys, Nob Hill, Lucky banners all present but they are still so few stores that I wouldn't mess with the banners.
I'd keep both banners Raleys and Save Mart in the central valley however- Raleys is positioned properly in those markets.
There would be some major overlap issues with such a merger, actually quite a few overlap issues. It could be as much as 50 stores of overlap. Given all the mergers I'm not sure who there is to sell to.
If I had to get rid of banners I'd get rid entirely of the banners "Save Mart" and "Nob Hill." Some would need to convert to Lucky and some to Raleys and I'd base it on the neighborhoods- Raleys for upper middle class locations and Lucky for lesser locations. I think the Save Mart banner needs to go; even in core markets like Modesto/Fresno it has a marginal at best reputation. Nob Hill has had a lot of closures over the years and Raleys hasn't done much with that banner, just sort of runs...
I think the Bel Air banner has significant value in Sacramento that makes it worth keeping. However, they could get away with a rebrand. It used to be Raleys was the large food drug/combo but Bel Air was the smaller "conventional grocery" (but with pharmacy usually) format. Now the lines have blurred and actually the main Raleys have become more like a Bel Air. They could rebrand Bel Air to Raleys and nobody would care.