Albertsons/Safeway 2018: Openings and Closings

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Re: Albertsons/Safeway 2018: Openings and Closings

Post by storewanderer » October 2nd, 2018, 11:12 pm

Texarkana is closing (Richmond store).

The closures seem to be sprinkled around, with one exception: have we ever noticed United Division close a store?

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Re: Albertsons/Safeway 2018: Openings and Closings

Post by architect » October 3rd, 2018, 10:18 am

storewanderer wrote:
October 2nd, 2018, 11:12 pm
Texarkana is closing (Richmond store).

The closures seem to be sprinkled around, with one exception: have we ever noticed United Division close a store?
Most of the United division's stores are either in areas where they have essentially a monopoly in the market, or in the cases of the DFW Market Street stores, are in upscale areas with solid demographics (and frankly are run much better than their typical Kroger/Tom Thumb competition). If we see closures in the division, I think that they would most likely occur in markets such as Albuquerque with legacy Albertsons stores.

Side note, could Albertsons be planning for an attempt to offload the two remaining Texarkana stores along with Longview and Shreveport to Brookshire's or another operator? In my opinion, these stores simply don't make sense to operate from a distribution standpoint considering that they are in secondary markets. Brookshire's would make sense as they either serve the markets in question or (in the case of Texarkana) have trucks passing through the city on a frequent basis.

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Re: Albertsons/Safeway 2018: Openings and Closings

Post by pseudo3d » October 3rd, 2018, 9:49 pm

architect wrote:
October 3rd, 2018, 10:18 am
storewanderer wrote:
October 2nd, 2018, 11:12 pm
Texarkana is closing (Richmond store).

The closures seem to be sprinkled around, with one exception: have we ever noticed United Division close a store?
Most of the United division's stores are either in areas where they have essentially a monopoly in the market, or in the cases of the DFW Market Street stores, are in upscale areas with solid demographics (and frankly are run much better than their typical Kroger/Tom Thumb competition). If we see closures in the division, I think that they would most likely occur in markets such as Albuquerque with legacy Albertsons stores.

Side note, could Albertsons be planning for an attempt to offload the two remaining Texarkana stores along with Longview and Shreveport to Brookshire's or another operator? In my opinion, these stores simply don't make sense to operate from a distribution standpoint considering that they are in secondary markets. Brookshire's would make sense as they either serve the markets in question or (in the case of Texarkana) have trucks passing through the city on a frequent basis.
There's no real reason why the Texarkana stores should be divested to Brookshire unless Brookshire offered a generous buyout, neither of which are likely to happen. Albertsons is no stranger to selling secondary markets in a division, but that only comes when the buyer (Publix and H-E-B, specifically) is willing to pony up a premium.

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Re: Albertsons/Safeway 2018: Openings and Closings

Post by wnetmacman » October 4th, 2018, 4:45 pm

pseudo3d wrote:
October 3rd, 2018, 9:49 pm
architect wrote:
October 3rd, 2018, 10:18 am
storewanderer wrote:
October 2nd, 2018, 11:12 pm
Texarkana is closing (Richmond store).

The closures seem to be sprinkled around, with one exception: have we ever noticed United Division close a store?
Most of the United division's stores are either in areas where they have essentially a monopoly in the market, or in the cases of the DFW Market Street stores, are in upscale areas with solid demographics (and frankly are run much better than their typical Kroger/Tom Thumb competition). If we see closures in the division, I think that they would most likely occur in markets such as Albuquerque with legacy Albertsons stores.

Side note, could Albertsons be planning for an attempt to offload the two remaining Texarkana stores along with Longview and Shreveport to Brookshire's or another operator? In my opinion, these stores simply don't make sense to operate from a distribution standpoint considering that they are in secondary markets. Brookshire's would make sense as they either serve the markets in question or (in the case of Texarkana) have trucks passing through the city on a frequent basis.
There's no real reason why the Texarkana stores should be divested to Brookshire unless Brookshire offered a generous buyout, neither of which are likely to happen. Albertsons is no stranger to selling secondary markets in a division, but that only comes when the buyer (Publix and H-E-B, specifically) is willing to pony up a premium.
Actually, Brookshire already has a presence in Texarkana, with a single Super 1 Foods store, just across I-30 from the closing Richmond Road store. I'm not surprised to see that one go, because that area is in a decline with Sears leaving the mall. Albertsons used to share that center with a very early and small Target, which left a while back.

A sale to Brookshire wouldn't be unprecedented, as they have purchased stores from Albertsons in Natchitoches and Tyler (among other places) in the past, and did so for almost nothing. Natchitoches's store was less than 10 years old, and was quite nice; it was purchased to avoid them giving it to competition. Longview's store is old (40 years) but huge, and it may be too big for any of Brookshire's concepts, as there are already three Super 1 Foods stores in town, and a failed Brookshire within 1/2 mile of it. Of Texarkana's two remaining stores, the Stateline store is similar to Longview, and the west loop store (across from the recently closed Kmart) was built in the early 90's. The lone Shreveport store is of similar vintage also. The last time they bought one of these stores was in 1990, and it didn't last long.

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Re: Albertsons/Safeway 2018: Openings and Closings

Post by pseudo3d » October 5th, 2018, 10:47 am

wnetmacman wrote:
October 4th, 2018, 4:45 pm
pseudo3d wrote:
October 3rd, 2018, 9:49 pm
architect wrote:
October 3rd, 2018, 10:18 am


Most of the United division's stores are either in areas where they have essentially a monopoly in the market, or in the cases of the DFW Market Street stores, are in upscale areas with solid demographics (and frankly are run much better than their typical Kroger/Tom Thumb competition). If we see closures in the division, I think that they would most likely occur in markets such as Albuquerque with legacy Albertsons stores.

Side note, could Albertsons be planning for an attempt to offload the two remaining Texarkana stores along with Longview and Shreveport to Brookshire's or another operator? In my opinion, these stores simply don't make sense to operate from a distribution standpoint considering that they are in secondary markets. Brookshire's would make sense as they either serve the markets in question or (in the case of Texarkana) have trucks passing through the city on a frequent basis.
There's no real reason why the Texarkana stores should be divested to Brookshire unless Brookshire offered a generous buyout, neither of which are likely to happen. Albertsons is no stranger to selling secondary markets in a division, but that only comes when the buyer (Publix and H-E-B, specifically) is willing to pony up a premium.
Actually, Brookshire already has a presence in Texarkana, with a single Super 1 Foods store, just across I-30 from the closing Richmond Road store. I'm not surprised to see that one go, because that area is in a decline with Sears leaving the mall. Albertsons used to share that center with a very early and small Target, which left a while back.

A sale to Brookshire wouldn't be unprecedented, as they have purchased stores from Albertsons in Natchitoches and Tyler (among other places) in the past, and did so for almost nothing. Natchitoches's store was less than 10 years old, and was quite nice; it was purchased to avoid them giving it to competition. Longview's store is old (40 years) but huge, and it may be too big for any of Brookshire's concepts, as there are already three Super 1 Foods stores in town, and a failed Brookshire within 1/2 mile of it. Of Texarkana's two remaining stores, the Stateline store is similar to Longview, and the west loop store (across from the recently closed Kmart) was built in the early 90's. The lone Shreveport store is of similar vintage also. The last time they bought one of these stores was in 1990, and it didn't last long.
Sorry, my post meant to say "a bigger pullout or generous buyout" but missed the first part (that's why it says "neither of which"), which the stores sold to Brookshire were exactly that, and most of the core stores divested in the sale of the Houston division were all less than seven years old, with a few even under construction. And even when Houston and San Antonio were killed, some outlier stores were kept for years even under LLC. Rough chronology of when the stores pulled out of Texas:

2002 - Core Houston, Core San Antonio, basically anything south of them (except Kerrville)
2004 - Temple-Killeen (at least Temple)
2006 - Waco (only one store), Bryan-College Station (one of three), Austin (underperforming stores)
2007 - Austin (remaining stores sold to H-E-B)
2008 - College Station (one of two)
2011 - College Station, New Braunfels, Kerrville (remaining three outliers sold to H-E-B, one of which reopened as an H-E-B)

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Re: Albertsons/Safeway 2018: Openings and Closings

Post by marshd1000 » October 12th, 2018, 11:07 pm

In November, the Safeway at “The Marketplace @ Factoria” is going to close. This store had a Lifestyle remodel just before the Albertsons merger. But it is one of the smaller stores with a deli, bakery and Starbucks. While it never seemed super busy, it wasn’t dead either. Since a Rite Aid was next door, I kind of wonder if the merger had happened, if that Safeway would have expanded into that store? Or would it had still closed.

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Re: Albertsons/Safeway 2018: Openings and Closings

Post by storewanderer » October 13th, 2018, 9:25 am

marshd1000 wrote:
October 12th, 2018, 11:07 pm
In November, the Safeway at “The Marketplace @ Factoria” is going to close. This store had a Lifestyle remodel just before the Albertsons merger. But it is one of the smaller stores with a deli, bakery and Starbucks. While it never seemed super busy, it wasn’t dead either. Since a Rite Aid was next door, I kind of wonder if the merger had happened, if that Safeway would have expanded into that store? Or would it had still closed.
I see this store got the "lighting enhancement" as well.

I guess the "lighting enhancement" does not mean much as this is not the first time they've closed a store that had it.

I suspect between the size of the store and the volume the lease is probably about to end and they can't make the numbers work with their lowish volume/small basket size/high price/marginal quality operation. These Safeway Stores in places like OR, WA, and CO really feel like Albertsons Stores with their small basket sizes, lightly stocked perimeters, and generally "dead" vibe. I am noticing more and more as I go into Safeway Stores how small the basket sizes are. I assume the QFC across the street is above average since it is near their HQ as well.

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Re: Albertsons/Safeway 2018: Openings and Closings

Post by pseudo3d » October 13th, 2018, 10:31 am

marshd1000 wrote:
October 12th, 2018, 11:07 pm
In November, the Safeway at “The Marketplace @ Factoria” is going to close. This store had a Lifestyle remodel just before the Albertsons merger. But it is one of the smaller stores with a deli, bakery and Starbucks. While it never seemed super busy, it wasn’t dead either. Since a Rite Aid was next door, I kind of wonder if the merger had happened, if that Safeway would have expanded into that store? Or would it had still closed.
What a weird mall. It looks like the Rite Aid and Safeway were part of a larger anchor with the Rite Aid possibly still maintaining mall access. It looks like it has a Target, Walmart, and even a Nordstrom...

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Re: Albertsons/Safeway 2018: Openings and Closings

Post by rwsandiego » October 13th, 2018, 11:45 am

pseudo3d wrote:
October 13th, 2018, 10:31 am
marshd1000 wrote:
October 12th, 2018, 11:07 pm
In November, the Safeway at “The Marketplace @ Factoria” is going to close. This store had a Lifestyle remodel just before the Albertsons merger. But it is one of the smaller stores with a deli, bakery and Starbucks. While it never seemed super busy, it wasn’t dead either. Since a Rite Aid was next door, I kind of wonder if the merger had happened, if that Safeway would have expanded into that store? Or would it had still closed.
What a weird mall. It looks like the Rite Aid and Safeway were part of a larger anchor with the Rite Aid possibly still maintaining mall access. It looks like it has a Target, Walmart, and even a Nordstrom...
That was my thought, but the Wikipedia page for the Factoria neighborhood lists the mall's original tenants were Ernst Home Centers, Lamonts, Britania, DJ's Sound City, Pay 'n Save, and Safeway.

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Re: Albertsons/Safeway 2018: Openings and Closings

Post by Super S » October 13th, 2018, 1:00 pm

Pay 'N Save was absorbed by PayLess Drug, which then was absorbed by Rite Aid. It's more likely Rite Aid is in the original Pay 'N Save space.

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