Kroger closing: Nokomis, IL

[buckguy]

Kroger couldn't compete in Cleveland because the local competition had bigger stores and better perishables, esp. the co-ops. It is the one market where I've actually seen them experiment--they had large warehouse stores which I don't think they did elsewhere and some small limited assortment stores before those were a thing, but they weren't a strategy ty for remaining. They lasted longer in Akron-Canton and Warren-Youngstown, but they had much weaker competition in those places, but also collapsing economies. In Pittsburgh, they had to compete against Giant Eagle, which had much larger stores and a better reading of the market. They also were unable to take advantage of the decline of Thorofare which once had been the market leader.

Kroger came to dominate Cincinnati in part because their strongest competitor, Albers/Colonial stopped investing in its stores and the independents withered away. The other chains were never enough of a factor. The demise of Big Bear helped them greatly in Columbus, ditto the demise of FoodTown in Toledo.

Kroger is not a quality operator and they tend to be defensive on price. They're not an innovator. They capitalize on the decline of their competition. You can't compare KC with Indy (where they the decline of Marsh and before them, National Tea helped them) or Cleveland or Cincinnati. It's not demographics, it's the retail environment.

[storewanderer]

Kroger is not a quality operator and they tend to be defensive on price. They're not an innovator. They capitalize on the decline of their competition.

For quite a time period, I would disagree with this assessment. Under David Dillon, Kroger made numerous improvements to its operations and was quite innovative. They installed that system to track movement through the stores and forecast how many registers to have open and their front end service improved considerably during that period. They developed Simple Truth private label line which has been a very strong label and not only strong on its own but also strong to bring the nutrition department more mainstream to more customers and not doing so with an outrageous price tag as certain competitors tried to do. Kroger also made significant improvements to promotions, buying, and logistics to operate more efficiently and improve their competitive position. Kroger also did what I would call innovative formats (some more cynical could call them copycat formats but however you want to assess them they were unique formats for Kroger and a step up from the usual Kroger operation) but the Marketplace format, the Mercado format on that one Fry's in AZ, the Signature format (specifically the one used in AZ), and even the Fresh Fare format (the version at Ralphs) were all quite well done and innovative to an extent.

The current era Kroger continues to do well with customers and marketshare. I am not satisfied with Kroger anymore, but they seem to be retaining their customers from what I am observing. But there was a time when Kmart and Sears ran a lousy operation yet still had busy stores too.

[klkla]

and even the Fresh Fare format (the version at Ralphs) were all quite well done and innovative to an extent.

FWIW I think that Fresh Fare was a Ralphs concept pre-Kroger.

[storewanderer]

and even the Fresh Fare format (the version at Ralphs) were all quite well done and innovative to an extent.

FWIW I think that Fresh Fare was a Ralphs concept pre-Kroger.

I was a little fuzzy on the details of Fresh Fare. Even if it wasn't pre-Kroger, it was definitely a concept developed by the group of Ralphs Management that was present when they merged into Kroger.

But a number of those Kroger divisions (perhaps not the Kroger banner itself) were innovative and had strong people at those division offices coming up with ideas, sharing ideas among divisions, and trying new things. In the past few years they seem to have basically killed off what was left of that at the divisions.

So maybe what buckguy says about lack of innovation at Kroger banner is the sort of "operation" we are seeing now cascaded across all of the divisions- given they have centralized so much out of the divisions.

[veteran+]

and even the Fresh Fare format (the version at Ralphs) were all quite well done and innovative to an extent.

FWIW I think that Fresh Fare was a Ralphs concept pre-Kroger.

There was a "concept" store in Palm Springs on Palm Canyon Bl. and I think Tahquitz Canyon (near Belardo Road) that was pre Fresh Fare. Pretty building with lots of red brick that turned into a Steinmart store.

There may have been other concept stores that Ralphs had. I was told that this store in Palm Springs was definitely a Fresh Fare experiment (the store did not have a Fresh Fare name on it).

Not sure of the timeline but it may have been during the merger activities at the time. Ralphs abandoned the store and took the Smoketree location.

[klkla]

There was a "concept" store in Palm Springs on Palm Canyon Bl. and I think Tahquitz Canyon (near Belardo Road) that was pre Fresh Fare. Pretty building with lots of red brick that turned into a Steinmart store.

There may have been other concept stores that Ralphs had. I was told that this store in Palm Springs was definitely a Fresh Fare experiment (the store did not have a Fresh Fare name on it).

Not sure of the timeline but it may have been during the merger activities at the time. Ralphs abandoned the store and took the Smoketree location.

That store in the Plaza del Sol Shopping Center (Hwy 111 & Sonora Rd) was definitely ahead of it's time architecturally but in an awkward location that was never very successful. IIRC it closed before they opened in the former Vons in Smoke Tree Village shopping center.

When Vons bought Safeway's Southern California division in 1988 as part of the dissent decree they agreed to sell that store to Ralphs and keep the Safeway down the street in the Rimrock Plaza shopping center which still operates as a Vons today.

[veteran+]

There was a "concept" store in Palm Springs on Palm Canyon Bl. and I think Tahquitz Canyon (near Belardo Road) that was pre Fresh Fare. Pretty building with lots of red brick that turned into a Steinmart store.

There may have been other concept stores that Ralphs had. I was told that this store in Palm Springs was definitely a Fresh Fare experiment (the store did not have a Fresh Fare name on it).

Not sure of the timeline but it may have been during the merger activities at the time. Ralphs abandoned the store and took the Smoketree location.

That store in the Plaza del Sol Shopping Center (Hwy 111 & Sonora Rd) was definitely ahead of it's time architecturally but in an awkward location that was never very successful. IIRC it closed before they opened in the former Vons in Smoke Tree Village shopping center.

When Vons bought Safeway's Southern California division in 1988 as part of the dissent decree they agreed to sell that store to Ralphs and keep the Safeway down the street in the Rimrock Plaza shopping center which still operates as a Vons today.

Yep, that's the store, except the cross street is E. Morongo Road. I am told that the inside was beautiful with lots of gourmet food and advanced services with extra personnel.

I am guessing the Steinmart is closed by now.

[Romr123]

It is closed.

[arizonaguy]

I've been to 4 Hen Houses: Westwood, Corinth Square, Leawood, and Olathe and Hen House, to me, feels like a high-end operator stuck in the 1990s. The décor, pricing, selection, and services seem to be what a high-end operator would have started in the 1990s but hasn't really evolved beyond that like high-end operators in other cities such as Central Market, Market Street, Lunds & Byerlys, Dierbergs, or even the Reasor's in Brookside in Tulsa offer. The pricing is certainly in line with the other high-end chains but the product and execution is not.

I agree the Westwood and Olathe Hen House are not upscale looking (especially Olathe- that thing looks like a Price Chopper)... but I think Corinth Square is an exceptionally nice looking and laid out store and though I have not been to the Leawood one it looks very nice in the photos online as well. What do you think is missing from them for a high end store? They have extensive service operations, high end beef (dry aged, etc.), large produce areas, extensive fresh cut fruits, extensive prepared foods, Starbucks in some locations, higher end bath and body items, etc.

I guess they don't have anything missing per se but the pricing versus the overall store presentation / experience just feels like a bit of a disconnect.

They're not a bad operator but for the same pricing the newer "Market" concepts of Cosentano's Market and McKeever's Market (2 of the other Price Chopper operators) seems to be more to a "modern" high end store standards.

I'd much rather have the AWG affiliates in Kansas City than the Fresh Encounter stores in OH / KY.