Retail Watchers

Per the Phoenix Business Journal (behind a paywall):

https://www.bizjournals.com/phoenix/new ... en-in.html

arizonaguy wrote: ↑January 3rd, 2018, 3:00 pm Per the Phoenix Business Journal (behind a paywall):

https://www.bizjournals.com/phoenix/new ... en-in.html

Probably not a bad idea given how the consolidation of Albertsons and Safeway is causing the area to lose supermarkets.

I'm looking forward to their opening. Growing up, we did a lot of shopping there (artist dad and bookkeeper mom-had to pinch pennies) and the quality was very good. When I'd take my dad shopping on visits back home I was impressed with their more upscale offerings and "finds." Hopefully, they will open a store in one of the not-too-rough Central Pheonix neighborhoods.

Lots of small format roadkill in Phoenix. Walmart Marketside, Fresh & Easy...

It may be different with Aldi. They are a known name to many midwestern transplants in Phoenix. In theory, you would think a smaller and fast in-fast out store with close parking would appeal in a climate such as Phoenix where it is unpleasant to trek through a large parking lot (leaving your car in the extreme heat for a longer time) to get to a larger store such as a busy Fry's or a large Wal Mart...

We will see how this goes.

storewanderer wrote: ↑January 3rd, 2018, 8:13 pm Lots of small format roadkill in Phoenix. Walmart Marketside, Fresh & Easy...

It may be different with Aldi. They are a known name to many midwestern transplants in Phoenix. In theory, you would think a smaller and fast in-fast out store with close parking would appeal in a climate such as Phoenix where it is unpleasant to trek through a large parking lot (leaving your car in the extreme heat for a longer time) to get to a larger store such as a busy Fry's or a large Wal Mart...

We will see how this goes.

Fresh & Easy had many problems that weren't inherent to it being small format, and Marketside never got more than four stores anyway. Considering how well Aldi has done in other markets I think it will go over fairly well.

storewanderer wrote: ↑January 3rd, 2018, 8:13 pm Lots of small format roadkill in Phoenix. Walmart Marketside, Fresh & Easy...

It may be different with Aldi. They are a known name to many midwestern transplants in Phoenix. In theory, you would think a smaller and fast in-fast out store with close parking would appeal in a climate such as Phoenix where it is unpleasant to trek through a large parking lot (leaving your car in the extreme heat for a longer time) to get to a larger store such as a busy Fry's or a large Wal Mart...

We will see how this goes.

Trader Joe's is immensely popular here for the very reasons you listed. Aldi probably wouldn't even have to build many stores from the ground up as there are at least 40 to 50 former Fresh and Easy, Marketside, Osco Drug, CVS, Walgreens, and Eckerd sites to choose from.

The problem that small formats have in Phoenix is that there is generally one, if not two supermarkets at every major intersection. Bashas' bankruptcy, the LLC and post merger purge of Albertsons locations, and the consolidation of the former separate Fry's, Smith's, and Smitty's chains have slightly cut down on some of the overkill, but Phoenix is very very well stored grocery wise.

Walmart found that its 35,000 - 45,000 square food Neighborhood Market concept worked well in Phoenix for the reason you described. Anything smaller seems to not work unless it has a unique niche like a Trader Joe's, Sprouts, or Whole Foods.

Aldi isn't nearly as stupid as Fresh and Easy (which literally appeared to throw darts on a board and open up stores wherever they landed, including some ridiculously bad locations), so they may have some success. However, small format hasn't really worked so well in Phoenix unless its a niche grocer (which Aldi really isn't).

storewanderer wrote: ↑January 3rd, 2018, 8:13 pm Lots of small format roadkill in Phoenix. Walmart Marketside, Fresh & Easy...

Why must companies continue to enter saturated markets and open 30 to 40 stores? It's painful to watch.

arizonaguy wrote: ↑January 3rd, 2018, 10:39 pm

storewanderer wrote: ↑January 3rd, 2018, 8:13 pm Lots of small format roadkill in Phoenix. Walmart Marketside, Fresh & Easy...

It may be different with Aldi. They are a known name to many midwestern transplants in Phoenix. In theory, you would think a smaller and fast in-fast out store with close parking would appeal in a climate such as Phoenix where it is unpleasant to trek through a large parking lot (leaving your car in the extreme heat for a longer time) to get to a larger store such as a busy Fry's or a large Wal Mart...

We will see how this goes.

Trader Joe's is immensely popular here for the very reasons you listed. Aldi probably wouldn't even have to build many stores from the ground up as there are at least 40 to 50 former Fresh and Easy, Marketside, Osco Drug, CVS, Walgreens, and Eckerd sites to choose from.

The problem that small formats have in Phoenix is that there is generally one, if not two supermarkets at every major intersection....

Except in Central Phoenix, where there are two Safeways and nothing else until you drive to Fry's on 7th Ave and Camelback or Bashas' at 7th Street and Missouri. While there is the Natural Grocer at Indian School and 7th Ave and the AJ's on Central and Camelback, I wouldn't count them as supermarkets where one would do the bulk of their shopping.

arizonaguy wrote: ↑January 3rd, 2018, 10:39 pm...Aldi isn't nearly as stupid as Fresh and Easy (which literally appeared to throw darts on a board and open up stores wherever they landed, including some ridiculously bad locations), so they may have some success. However, small format hasn't really worked so well in Phoenix unless its a niche grocer (which Aldi really isn't).

F&E also had a bad habit of selling sub-Aldi-level merchandise at Whole Foods prices. I lived in San Diego when they were in business and marveled at the expired/near-expired pre-wrapped produce, budget-cut meats, and soybean oil/corn syrup laced sauces and condiments that they were passing off as top quality. That and the bizarre locations were not a recipe for success. Aldi doesn't do that. While they have budget-quality meat and produce they sell it at a budget price. I've said this before - my dad shopped there out of habit (we were broke growing up and so we shopped there. As his prosperity rose his grocery habits didn't) and I was amazed at the quality of some of the food. Taking him there was an adventure.

As you and storewanderer stated, Aldi is an established, successful operator who runs stores that one can get in and out. of quickly. If they opened stores in east-central Phoenix I'd be ecstatic to be able to run in and out n my way home from work.