ClownLoach wrote: ↑June 23rd, 2023, 3:42 pm
This just sounds like the classic example of changing the formula too much (a difficult to shop multi floor store that increases overhead expense and discourages regular visits), a bad location choice with a dying mall, and the combination of the two meant that they couldn't generate enough volume to overcome the high overhead costs of such a store.
Doing the math - they have 111 stores and bring in about $10B a year. That means the average Wegmans delivers $1.73M per week, or about $90M a year.
Based on the description here I would assume that this store isn't delivering anything close to that kind of volume. Even if they delivered "only" a million a week they would assuredly be running in the red and need to close.
I just don't see a conventional mall Supermarket delivering $90M a year anywhere with all the problems malls are having right now. I also don't see where anyone else who took the same spot and built a grocery megastore wouldn't be in the same situation of losing money and closing down.
There might be a difference, in that most supermarkets wouldn't need to have that large of a volume to do OK. Also, in that most chains have stores that are smaller than Wegman's does, so they might very well eliminate the issues you mentioned by being able to have such a store all on one level (or only using extra space on a second floor for work/storage, thus not having to have a way for customers and their carts to go between levels, just a simple elevator for employees and stocking carts).
It also depends on the design of the mall and space - if they have taken over part (or all) of a former anchor space, and that space is on the "end" of the mall, it can act much like any other supermarket space - no connection into the mall itself, and having easy parking access with a lot that really only serves that store and not the remainder of the mall.
ClownLoach wrote: ↑June 23rd, 2023, 3:42 pm
This just sounds like the classic example of changing the formula too much (a difficult to shop multi floor store that increases overhead expense and discourages regular visits), a bad location choice with a dying mall, and the combination of the two meant that they couldn't generate enough volume to overcome the high overhead costs of such a store.
Doing the math - they have 111 stores and bring in about $10B a year. That means the average Wegmans delivers $1.73M per week, or about $90M a year.
Based on the description here I would assume that this store isn't delivering anything close to that kind of volume. Even if they delivered "only" a million a week they would assuredly be running in the red and need to close.
I just don't see a conventional mall Supermarket delivering $90M a year anywhere with all the problems malls are having right now. I also don't see where anyone else who took the same spot and built a grocery megastore wouldn't be in the same situation of losing money and closing down.
It also depends on the design of the mall and space - if they have taken over part (or all) of a former anchor space, and that space is on the "end" of the mall, it can act much like any other supermarket space - no connection into the mall itself, and having easy parking access with a lot that really only serves that store and not the remainder of the mall.
That's the worst way to any anchor, does not produce any cross-traffic between the mall and the store, and people visiting the supermarket have to deal with mall traffic and the issues there (ring roads, etc.)
But two level grocery stores have all sorts of issues, especially how it messes up traffic flow of shoppers throughout the center. The "two-level" H-E-B grocery stores I've been to are essentially a full store cantilevered on a parking deck, with the first floor having the pharmacy itself (the HBA department is still in the usual place, just without the pharmacy window). In other cases, the second floor is usually non-grocery, such as the case of MEGA MART in the Atlanta area. However, from what I could tell, Wegmans non-food assortment is incredibly weak, even by supermarket standards, so they would've had to basically invent new departments (housewares, etc.) for the upper level that wouldn't normally exist in a regular Wegmans. It all comes down to adapting for space.
That's the worst way to any anchor, does not produce any cross-traffic between the mall and the store, and people visiting the supermarket have to deal with mall traffic and the issues there (ring roads, etc.)
Wegmans has a 'mall store' near me (Montgomery Mall In Montgomeryville/North Wales, PA) It was a demolished former Strawbridge's anchor, and very briefly a Boscov's which shuttered during their brief bankruptcy.
It seems to do just fine despite some goofy mall access roads and traffic signals. But yeah, I don't think it provides much benefit to the nearly dead mall it is attached to (another Kohan special!). Supposedly Wegmans owns their site outright though. The whole property would be so much better if it was reconfigured as a mixed-use center with housing, but that's a whole different topic.
pseudo3d wrote: ↑February 5th, 2024, 9:45 am
In other cases, the second floor is usually non-grocery, such as the case of MEGA MART in the Atlanta area. However, from what I could tell, Wegmans non-food assortment is incredibly weak, even by supermarket standards, so they would've had to basically invent new departments (housewares, etc.) for the upper level that wouldn't normally exist in a regular Wegmans. It all comes down to adapting for space.
The stores I've seen had a fairly good section of non-food items (often still food connected, like kitchenware), but it would depend on how much space to fill (or putting other nonfoods like cleaning and HABA there as well).
pseudo3d wrote: ↑February 5th, 2024, 9:45 am
In other cases, the second floor is usually non-grocery, such as the case of MEGA MART in the Atlanta area. However, from what I could tell, Wegmans non-food assortment is incredibly weak, even by supermarket standards, so they would've had to basically invent new departments (housewares, etc.) for the upper level that wouldn't normally exist in a regular Wegmans. It all comes down to adapting for space.
The stores I've seen had a fairly good section of non-food items (often still food connected, like kitchenware), but it would depend on how much space to fill (or putting other nonfoods like cleaning and HABA there as well).
It does seem to vary by store size. The Germantown, MD store, which is a full-size location, has a large non-food section but it's stuff you often find in a large super market--housewares, wrapping paper, HBA, etc. Giant is the one chain in the DC area that has a fairly large non-food section based on their prior history with early combo food/general merchandise stores and having a small number of freestanding drug stores---but even they have a selection similar to Wegman's. The much smaller store in DC has an abbreviated selection of these items. Unlike Germantown, it has a full liquor license (Germantown doesn't sell alcohol) but no pharmacy, so the overall merchandise mix is different, anyway. I've been to large stores in their home market (Rochester) and they seem to be merchandised like the Germantown store, but I think they only sell beer, because of state law.
buckguy wrote: ↑February 6th, 2024, 10:21 am
It does seem to vary by store size. The Germantown, MD store, which is a full-size location, has a large non-food section but it's stuff you often find in a large super market--housewares, wrapping paper, HBA, etc. Giant is the one chain in the DC area that has a fairly large non-food section based on their prior history with early combo food/general merchandise stores and having a small number of freestanding drug stores---but even they have a selection similar to Wegman's. The much smaller store in DC has an abbreviated selection of these items. Unlike Germantown, it has a full liquor license (Germantown doesn't sell alcohol) but no pharmacy, so the overall merchandise mix is different, anyway. I've been to large stores in their home market (Rochester) and they seem to be merchandised like the Germantown store, but I think they only sell beer, because of state law.
Yes, NY law only allows beer and things like wine coolers (not sure what is out there now, but you may remember Bartles & Jaymes from years back), some of the seltzers, ciders etc.
No actual wine or liquor, those have to be in a separate store, and I believe only one to a customer (though some like BJ's will set up such a store in their building, and there may be a market or two that has them as well).
I've noticed a recent Wegmans Ad airing mentioning that inflation is going down really touting their commitment to low prices. I tried searching for it online but nobody seems to have it posted anywhere.
mbz321 wrote: ↑February 13th, 2024, 6:42 pm
I've noticed a recent Wegmans Ad airing mentioning that inflation is going down really touting their commitment to low prices. I tried searching for it online but nobody seems to have it posted anywhere.
What prices have you seen them reduce?
At this point I guess everyone will be happy if prices just stop increasing... forget actually decreasing them...
storewanderer wrote: ↑February 14th, 2024, 12:32 am
What prices have you seen them reduce?
I'm not sure as I very rarely shop there. Honestly their regular grocery prices have always been pretty decent, especially on store branded items. It's all the prepared food and other fancier items that are, IMO, horribly overpriced.
mbz321 wrote: ↑February 14th, 2024, 6:34 am
I'm not sure as I very rarely shop there. Honestly their regular grocery prices have always been pretty decent, especially on store branded items. It's all the prepared food and other fancier items that are, IMO, horribly overpriced.
Amazing just how many people seem to not be able to understand that and just want to say that it is an expensive store, ignoring the good deals that exist in the "regular" parts of the store
Even though I suspect 95% of those in the Albany area would have been happy had they been the ones announcing yesterday about looking for locations rather than Grocery Outlet (which most in this area who don't read forums like this have probably never heard of).
