Walmart 2023 Closings

[retailfanmitchell019]

Those numbers are for the "Chicago area." Meijer has zero stores in Chicago proper (the areas where Wal Mart is closing 4 stores). It will also be interesting to see how those numbers change once the closures Wal Mart is doing are reflected. I am guessing it will cost them a percent of share.

The nearest Meijer to Chicago proper is 10+ miles away from the center of Chicago, down in Evergreen Park. Meijer actually hasn't done all that great around Chicago. They did close two "Marketplace" (their answer to Wal Mart Neighborhood Market) units in Berwyn and Melrose Park in 2017 (those opened in 2011 and 2012 respectively) and also in 2016 closed a full-ish size (102k sq ft) store in Niles in 2016 that opened in 2010. Perhaps after those closures things got better for them. They have done many remodels since these closures. But they have had more problems in Chicago than a lot of other markets.

Chicago is a difficult market. You would need to go walk some stores there to understand. The customer base is very demanding and very particular with what they want to purchase, and they are somewhat price sensitive. You have some very picky cooks there who want ingredients that meet their exact standards. You have to look at how they rejected Safeway's California/no competition style of operations (super high pricing, too much private label, regional brands downplayed or gone) to get an idea of what the customer in that market will and won't put up with.

I am surprised Target is not showing up in the top 5 given the number of stores they have around there, both small format and larger size. But they are such a lousy grocer and there are so many better options in Chicago area, I am not too surprised. Super Kmart was also quite weak around Chicago.

You're right, context matters. I meant the Chicago metro area.
I'm guessing Jewel does a good job of tailoring their stores to ethnic neighborhoods in order to be so successful. I'm hoping Kroger runs Jewel semi-autonomous like HT.

[storewanderer]

You're right, context matters. I meant the Chicago metro area.
I'm guessing Jewel does a good job of tailoring their stores to ethnic neighborhoods in order to be so successful. I'm hoping Kroger runs Jewel semi-autonomous like HT.

The ethnic thing in Chicago is a little different. A lot of it is the Polish or Italian customer with very specific demands. I haven't seen another region quite like Chicago in this regard.

Kroger will do just fine with Jewel. It is just their type of store size/format. I expect they will integrate it fairly quickly on systems/private label. Jewel is really quite similar to a Kroger, just slightly better looking stores and somewhat larger center store mix. From a price and store condition perspective they are pretty similar (somewhat lower pricing, and not always perfect store conditions). Harris Teeter is a bit different of a thing; prices are a lot higher, stores are a lot flashier looking...

I don't think they will screw up the mix too much or too quickly. Kroger can support a large, full drug/non food mix even better than the Jewel offer, so that will be fine. I also think the Kroger private label programs will do very well at Jewel and be quite popular. I say this because they are well priced and well assorted. Also I don't expect Kroger to just cut a ton of regional/name brand items overnight. Kroger will to an extent let the customer decide (this is why there is not as much variety of Kroger private label at Ralphs, QFC, or Fred Meyer as in other divisions... it doesn't sell as well...).

Safeway's strategy in the Dominick's days of discontinuing the regional/name brand items then replacing with a Safeway brand item that sold at a price just as high as the name brand items was like a double punch in the face to the customer. First they couldn't get what they wanted, second with the alternative they were being ripped off.

[retailfanmitchell019]

Kroger will do just fine with Jewel. It is just their type of store size/format. I expect they will integrate it fairly quickly on systems/private label. Jewel is really quite similar to a Kroger, just slightly better looking stores and somewhat larger center store mix. From a price and store condition perspective they are pretty similar (somewhat lower pricing, and not always perfect store conditions). Harris Teeter is a bit different of a thing; prices are a lot higher, stores are a lot flashier looking...

I don't think they will screw up the mix too much or too quickly. Kroger can support a large, full drug/non food mix even better than the Jewel offer, so that will be fine. I also think the Kroger private label programs will do very well at Jewel and be quite popular. I say this because they are well priced and well assorted. Also I don't expect Kroger to just cut a ton of regional/name brand items overnight. Kroger will to an extent let the customer decide (this is why there is not as much variety of Kroger private label at Ralphs, QFC, or Fred Meyer as in other divisions... it doesn't sell as well...).

Safeway's strategy in the Dominick's days of discontinuing the regional/name brand items then replacing with a Safeway brand item that sold at a price just as high as the name brand items was like a double punch in the face to the customer. First they couldn't get what they wanted, second with the alternative they were being ripped off.

Moving reply to merger thread.

[veteran+]

You're right, context matters. I meant the Chicago metro area.
I'm guessing Jewel does a good job of tailoring their stores to ethnic neighborhoods in order to be so successful. I'm hoping Kroger runs Jewel semi-autonomous like HT.

The ethnic thing in Chicago is a little different. A lot of it is the Polish or Italian customer with very specific demands. I haven't seen another region quite like Chicago in this regard.

Kroger will do just fine with Jewel. It is just their type of store size/format. I expect they will integrate it fairly quickly on systems/private label. Jewel is really quite similar to a Kroger, just slightly better looking stores and somewhat larger center store mix. From a price and store condition perspective they are pretty similar (somewhat lower pricing, and not always perfect store conditions). Harris Teeter is a bit different of a thing; prices are a lot higher, stores are a lot flashier looking...

I don't think they will screw up the mix too much or too quickly. Kroger can support a large, full drug/non food mix even better than the Jewel offer, so that will be fine. I also think the Kroger private label programs will do very well at Jewel and be quite popular. I say this because they are well priced and well assorted. Also I don't expect Kroger to just cut a ton of regional/name brand items overnight. Kroger will to an extent let the customer decide (this is why there is not as much variety of Kroger private label at Ralphs, QFC, or Fred Meyer as in other divisions... it doesn't sell as well...).

Safeway's strategy in the Dominick's days of discontinuing the regional/name brand items then replacing with a Safeway brand item that sold at a price just as high as the name brand items was like a double punch in the face to the customer. First they couldn't get what they wanted, second with the alternative they were being ripped off.

Ralphs - Kroger private label in Ralphs stores depends on location and most importantly on size of store.

They are the best selling skus in every store I have managed.

[mburb1981]

Breaking away from the Chicago talk...yet another Neighborhood Market closure has been announced, this one in Overland Park, Kansas: https://shawneemissionpost.com/2023/05/ ... ng-200575/

[storewanderer]

Breaking away from the Chicago talk...yet another Neighborhood Market closure has been announced, this one in Overland Park, Kansas: https://shawneemissionpost.com/2023/05/ ... ng-200575/

It says the store opened in 2003. My guess is the lease is up and they are tired of these low volume stores. Outside California I don't think these stores are productive at all, but in California I think about half of them are productive.

For instance, why would a customer do a pick up order at one of these when there is a large Supercenter a few miles away where they have access to so much larger of a product mix?

[arizonaguy]

Breaking away from the Chicago talk...yet another Neighborhood Market closure has been announced, this one in Overland Park, Kansas: https://shawneemissionpost.com/2023/05/ ... ng-200575/

It says the store opened in 2003. My guess is the lease is up and they are tired of these low volume stores. Outside California I don't think these stores are productive at all, but in California I think about half of them are productive.

For instance, why would a customer do a pick up order at one of these when there is a large Supercenter a few miles away where they have access to so much larger of a product mix?

This store is less than 2 miles south of another Neighborhood Market as well as 3 miles north of a Supercenter in an area that is a mix of commercial office space and low density residential.

My guess is that the nearest Supercenter (which was a former Division 1 store) wasn't a supercenter when this store opened but sometime over the last 20 years was converted into a Supercenter which made this store completely redundant.

[storewanderer]

This store is less than 2 miles south of another Neighborhood Market as well as 3 miles north of a Supercenter in an area that is a mix of commercial office space and low density residential.

My guess is that the nearest Supercenter (which was a former Division 1 store) wasn't a supercenter when this store opened but sometime over the last 20 years was converted into a Supercenter which made this store completely redundant.

It is easy to look at these Wal Mart closures as a sky is falling scenario and Wal Mart is doomed scenario. But recall throughout the 2000's Wal Mart was clearly, over-expanding. Everyone said it, but they kept building and building. During the 2010's they closed relatively fewer stores than many would have expected after all of the over-expansion. Now they are finally getting around to closing stores.

Closures like this I do not consider to represent a sky is falling scenario for Wal Mart based on what you point out of another nearby Neighborhood Market and another nearby Supercenter.

So far about the only closure I've seen that seems to represent some kind of failure/surrender is that one in South Bend? IN that had a Meijer across the road and no other Wal Mart for a 10-15 minute drive.

If those Portland/Chicago Stores were such great viable store locations I'm sure Target and other grocers will be falling over themselves trying to get the spaces the moment Wal Mart vacates. That remains to be seen.

[retailfanmitchell019]

So far about the only closure I've seen that seems to represent some kind of failure/surrender is that one in South Bend? IN that had a Meijer across the road and no other Wal Mart for a 10-15 minute drive.

They closed a store in Plainfield, IL, a well-off Chicago suburb. That store was across the street from a Super Target (up the street from a Meijer).

[storewanderer]

So far about the only closure I've seen that seems to represent some kind of failure/surrender is that one in South Bend? IN that had a Meijer across the road and no other Wal Mart for a 10-15 minute drive.

They closed a store in Plainfield, IL, a well-off Chicago suburb. That store was across the street from a Super Target (up the street from a Meijer).

Plainfield looks like a bit of a hole but I see 4 other Wal Mart Supercenters within 5-15 minutes of it in each direction.

The Target in Plainfield is not a Super Target. This is a rant at what I find deceptive advertising by Target, not directed at you/your post: Just because Google Maps says "Target Grocery" does not mean it is a Super Target. Just because Target puts a sign out front that says "Fresh Grocery" does not mean it is a Super Target (as I learned in Las Vegas a few weeks ago). Target is rather deceptive in how it labels stores on Google as "Target Grocery" or puts signs up that say "Fresh Grocery" on non-Super Target units.