Retail Watchers

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.

BillyGr wrote: ↑June 24th, 2023, 9:56 am

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.

pseudo3d wrote: ↑February 5th, 2024, 9:45 am

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.)

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.

BillyGr wrote: ↑February 6th, 2024, 8:04 am

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).

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.

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.

storewanderer wrote: ↑February 14th, 2024, 12:32 am What prices have you seen them reduce?

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.