Haggen to close, liquidate 100 more stores

[pseudo3d]

That would indicate they don't seem to have much of a consistent strategy going on. What shoppers didn't like the reopening of the Springfield, OR store with Albertsons decor? I think they flat out didn't properly coordinate which banner to place on the store... there is an Albertsons already on the next lot over from that store (a larger newer Albertsons at that, with a much larger parking lot).

For whatever reason, they were going to reopen the Springfield store as an Albertsons with Albertsons decor. The final product will be a Safeway with Safeway décor. I'm not sure what plans Albertsons has to reopen them, but the "This has no consistent strategy" sentiment is exaggerated. They've mostly been sticking with original banners with brand-specific décor.

As for the Haggen buyout, if there's still an auction date, then maybe the Albertsons bid isn't actually final?

Is it possible that Albertsons arranged with a bank to actually be the real bidder, then buy off the stores they want?

[storewanderer]

Lots of negative comments about Albertsons and Safeway in the reader comments:
http://www.seattletimes.com/business/re ... lbertsons/

They do have a consistent strategy, it is to be crooked. And the highest prices in their markets. They can only be successful by creating monopoly situations but it won't last.

[pseudo3d]

Lots of negative comments about Albertsons and Safeway in the reader comments:
http://www.seattletimes.com/business/re ... lbertsons/

They do have a consistent strategy, it is to be crooked. And the highest prices in their markets. They can only be successful by creating monopoly situations but it won't last.

Negative comments happen all the time when supermarkets are bought by larger competitors...I don't think there was a lot of positivity at all when Kroger bought Mariano's, Harris Teeter, or Hiller's, either.

Frankly, I'm just going to wait and see what Albertsons actually does with the stores (and if they actually win) before jumping to any conclusions.

EDIT: Haggen is already falling apart even before Albertsons is buying them, two more stores are closing... http://www.kgw.com/money/consumer/two-l ... s/76846640

EDIT 2: The comments weren't universally negative, as there seems to be some blame on Haggen's own handling of the fiasco.

Hagen 'screwed the pooch' on its misguided acquisition of stores in CA/AZ. Betrayed its sensible, core Northwest roots, betrayed its customers and employees. Complete disarray in neighborhoods that had been reliant on Albertsons. May Haggen die an ignoble death.

Haggen's failure is a prime expample of what happens when you let hedge fund managers and bean counters run a business with no understanding of some of the core aspects of the business. The grocery business is one in which the relationship that the store has with the community is of prime importance, it's a lot more than just numbers.

[wnetmacman]

Negative comments happen all the time when supermarkets are bought by larger competitors...I don't think there was a lot of positivity at all when Kroger bought Mariano's, Harris Teeter, or Hiller's, either.

The whole reason for our competitive market is to have a choice. When your favorite store is taken over by your least favorite store, there will absolutely be complaints.

Kroger and Albertsons have become takeover masters. Buy up a chain, say you're going to leave it just like it is, then slowly assimilate it into the collective, which does the exact opposite. Both companies are notorious for it; Kroger has improved itself in recent years by learning from its takeovers (who knew a Kroger store could sell jewelry and be good at it?), but Albertsons is buying chains that have no real value. I think the only reason they didn't buy A&P was because it would have given them unfair monopolies in certain areas. If they aren't careful, they will be the next A&P.

To sum that up: I wouldn't be happy if either company bought my favorite chain either.

They do have a consistent strategy, it is to be crooked. And the highest prices in their markets. They can only be successful by creating monopoly situations but it won't last.

Exactly. I only shop at Albertsons here when something I need is on sale. I don't regularly buy groceries there, because I'd go broke. And as for the monopoly, in the west, they've really got it now. East of the Rockies, it's slipping.

[veteran+]

"Haggen's failure is a prime expample of what happens when you let hedge fund managers and bean counters run a business with no understanding of some of the core aspects of the business. The grocery business is one in which the relationship that the store has with the community is of prime importance, it's a lot more than just numbers."

FINALLY, someone puts the majority blame where it belongs.

Comvest: the genesis of this disaster (great example of hedge fund-corporate raider avarice)

Haggen: the naive incompetent

Safeway/Albertsons: the ultimate opportunist

[pseudo3d]

Kroger and Albertsons have become takeover masters. Buy up a chain, say you're going to leave it just like it is, then slowly assimilate it into the collective, which does the exact opposite. Both companies are notorious for it; Kroger has improved itself in recent years by learning from its takeovers (who knew a Kroger store could sell jewelry and be good at it?), but Albertsons is buying chains that have no real value.

I think that definitely Safeway had "real value", not so much in the stores themselves but a base to build a chain off of (back office support, brand names, manufacturing plants). United did too...as far as I know, a lot of that has been left alone (including décor packages). I don't know too much about the reopening of Haggen stores, but that and the acquisition of some A&P stores have been the only "acquisitions" that have happened so far. Paul's Market and Haggen haven't even been official yet, and as for the former, the name won't be kept.

I think the only reason they didn't buy A&P was because it would have given them unfair monopolies in certain areas.

A&P had a lot of problems. The unions made demands some buyers might have found unreasonable, and a lot of their stores were in really bad shape. There's a reason no company wanted A&P wholesale in the last 10 years. Heck, even Kroger was interested in buying Winn-Dixie prior to their 2005 bankruptcy!

Exactly. I only shop at Albertsons here when something I need is on sale. I don't regularly buy groceries there, because I'd go broke. And as for the monopoly, in the west, they've really got it now. East of the Rockies, it's slipping.

Albertsons in areas outside of the West has never been close to a monopoly. Most of the stores built under the original Albertsons Inc. died off several years ago.

"Haggen's failure is a prime expample of what happens when you let hedge fund managers and bean counters run a business with no understanding of some of the core aspects of the business. The grocery business is one in which the relationship that the store has with the community is of prime importance, it's a lot more than just numbers."

FINALLY, someone puts the majority blame where it belongs.

Comvest: the genesis of this disaster (great example of hedge fund-corporate raider avarice)

Haggen: the naive incompetent

Safeway/Albertsons: the ultimate opportunist

During the collapse of the Southwest division, there were a lot of questions regarding Haggen and Comvest that never went answered before Albertsons reappeared to buy back the stores. Hedge funds do destroy stores, just like at Sears and Kmart.

[arizonaguy]

Kroger and Albertsons have become takeover masters. Buy up a chain, say you're going to leave it just like it is, then slowly assimilate it into the collective, which does the exact opposite. Both companies are notorious for it; Kroger has improved itself in recent years by learning from its takeovers (who knew a Kroger store could sell jewelry and be good at it?), but Albertsons is buying chains that have no real value.

I think that definitely Safeway had "real value", not so much in the stores themselves but a base to build a chain off of (back office support, brand names, manufacturing plants). United did too...as far as I know, a lot of that has been left alone (including décor packages). I don't know too much about the reopening of Haggen stores, but that and the acquisition of some A&P stores have been the only "acquisitions" that have happened so far. Paul's Market and Haggen haven't even been official yet, and as for the former, the name won't be kept.

I think the only reason they didn't buy A&P was because it would have given them unfair monopolies in certain areas.

A&P had a lot of problems. The unions made demands some buyers might have found unreasonable, and a lot of their stores were in really bad shape. There's a reason no company wanted A&P wholesale in the last 10 years. Heck, even Kroger was interested in buying Winn-Dixie prior to their 2005 bankruptcy!

Exactly. I only shop at Albertsons here when something I need is on sale. I don't regularly buy groceries there, because I'd go broke. And as for the monopoly, in the west, they've really got it now. East of the Rockies, it's slipping.

Albertsons in areas outside of the West has never been close to a monopoly. Most of the stores built under the original Albertsons Inc. died off several years ago.

"Haggen's failure is a prime expample of what happens when you let hedge fund managers and bean counters run a business with no understanding of some of the core aspects of the business. The grocery business is one in which the relationship that the store has with the community is of prime importance, it's a lot more than just numbers."

FINALLY, someone puts the majority blame where it belongs.

Comvest: the genesis of this disaster (great example of hedge fund-corporate raider avarice)

Haggen: the naive incompetent

Safeway/Albertsons: the ultimate opportunist

During the collapse of the Southwest division, there were a lot of questions regarding Haggen and Comvest that never went answered before Albertsons reappeared to buy back the stores. Hedge funds do destroy stores, just like at Sears and Kmart.

Albertsons/Safeway is owned by a hedge fund.

In reality Albertsons isn't buying anything. Cerberus (the hedge fund is) and placing control of the supermarket assets it acquires under the Albertsons umbrella.

[pseudo3d]

Kroger and Albertsons have become takeover masters. Buy up a chain, say you're going to leave it just like it is, then slowly assimilate it into the collective, which does the exact opposite. Both companies are notorious for it; Kroger has improved itself in recent years by learning from its takeovers (who knew a Kroger store could sell jewelry and be good at it?), but Albertsons is buying chains that have no real value.

I think that definitely Safeway had "real value", not so much in the stores themselves but a base to build a chain off of (back office support, brand names, manufacturing plants). United did too...as far as I know, a lot of that has been left alone (including décor packages). I don't know too much about the reopening of Haggen stores, but that and the acquisition of some A&P stores have been the only "acquisitions" that have happened so far. Paul's Market and Haggen haven't even been official yet, and as for the former, the name won't be kept.

I think the only reason they didn't buy A&P was because it would have given them unfair monopolies in certain areas.

A&P had a lot of problems. The unions made demands some buyers might have found unreasonable, and a lot of their stores were in really bad shape. There's a reason no company wanted A&P wholesale in the last 10 years. Heck, even Kroger was interested in buying Winn-Dixie prior to their 2005 bankruptcy!

Exactly. I only shop at Albertsons here when something I need is on sale. I don't regularly buy groceries there, because I'd go broke. And as for the monopoly, in the west, they've really got it now. East of the Rockies, it's slipping.

Albertsons in areas outside of the West has never been close to a monopoly. Most of the stores built under the original Albertsons Inc. died off several years ago.

"Haggen's failure is a prime expample of what happens when you let hedge fund managers and bean counters run a business with no understanding of some of the core aspects of the business. The grocery business is one in which the relationship that the store has with the community is of prime importance, it's a lot more than just numbers."

FINALLY, someone puts the majority blame where it belongs.

Comvest: the genesis of this disaster (great example of hedge fund-corporate raider avarice)

Haggen: the naive incompetent

Safeway/Albertsons: the ultimate opportunist

During the collapse of the Southwest division, there were a lot of questions regarding Haggen and Comvest that never went answered before Albertsons reappeared to buy back the stores. Hedge funds do destroy stores, just like at Sears and Kmart.

Albertsons/Safeway is owned by a hedge fund.

In reality Albertsons isn't buying anything. Cerberus (the hedge fund is) and placing control of the supermarket assets it acquires under the Albertsons umbrella.

Cerberus is a private equity group. Hedge funds want to provide high investment returns as quickly as possible, which is death to retail stores as they attempt to divest things like property (which Sears and Haggen did). Private equity groups want to focus on long-term potential, which is the goal of something like Albertsons. They are easy to get confused, though, especially given how Albertsons LLC closed or otherwise sold about 70% of the stores they acquired.

http://www.investopedia.com/ask/answers ... y-fund.asp

[wnetmacman]

Cerberus is a private equity group.

I worked for another company owned by Cerberus. While long-term is the goal, they are just like the hedge funds: profits=success. Our company was a marginal profit company (government contracting). The CEO position became, and has been, a revolving door ever since Cerberus took it over. They do not have any knowledge of the businesses they purchase. They are just trying to make a buck from them.

They are easy to get confused, though, especially given how Albertsons LLC closed or otherwise sold about 70% of the stores they acquired.

The Albertsons LLC deal is no different. The 70% of the stores that have been closed were very much dead weight. They were not, nor were they ever to become, profitable. That's why they were closed.

[pseudo3d]

Cerberus is a private equity group.

I worked for another company owned by Cerberus. While long-term is the goal, they are just like the hedge funds: profits=success. Our company was a marginal profit company (government contracting). The CEO position became, and has been, a revolving door ever since Cerberus took it over. They do not have any knowledge of the businesses they purchase. They are just trying to make a buck from them.

They are easy to get confused, though, especially given how Albertsons LLC closed or otherwise sold about 70% of the stores they acquired.

The Albertsons LLC deal is no different. The 70% of the stores that have been closed were very much dead weight. They were not, nor were they ever to become, profitable. That's why they were closed.

By most accounts, the stores acquired from New Albertsons Inc. WERE improved post-SuperValu, but another problem even in the midst of the LLC closures was the poor handling of Mervyn's and the problems that led to its failure.

The 70% store closures weren't all unprofitable failures. There were a number of stores closed in 2006 immediately, that was when the Waco store (basically an old location surrounded by larger, nicer, and better-managed H-E-B stores) and the Bryan store (a modern store that was just built in the wrong part of town...it would sit 7 years before being reopened by Walmart Neighborhood Market, which closed this January). Many of the Florida stores were profitable (many operate as Publix today), too.

When New Albertsons Inc. was acquired, common thought was that most of the stores were going to be gotten rid of (ACME was thought to be beyond repair), as did Safeway.