QFC is EXPENSIVE

[storewanderer]

It is possible QFC won't be the brand they use on divested stores but I have to think given they negotiated for the name they plan to use it... If they have fair prices when they make a first impression to the customers in Spokane, Anchorage, Medford, Boise, or various Portland suburbs it may work out okay. Plus I suspect the QFC name to be used in all "non-Albertsons" states as well like Nevada, New Mexico, Louisiana, and Texas. To that point the odd detached territory they get to use the Albertsons banner in strikes me as questionable at best and I am not sure it makes sense to use that banner in odd detached random states. Would it be better to literally rebrand everything to QFC and get a consistent marketing message going? QFC won't have baggage in SoCal or Phoenix, few will know what it is, if it executes correctly. We see how that all worked out for Haggen.

With that said isn't it ironic the solution for this merger is to take a tiny OR/WA primarily Seattle/Portland chain QFC and appear to run it on a significant expansion into various far flung states/territories. That sounds a lot like Haggen.

[ClownLoach]

It is possible QFC won't be the brand they use on divested stores but I have to think given they negotiated for the name they plan to use it... If they have fair prices when they make a first impression to the customers in Spokane, Anchorage, Medford, Boise, or various Portland suburbs it may work out okay. Plus I suspect the QFC name to be used in all "non-Albertsons" states as well like Nevada, New Mexico, Louisiana, and Texas. To that point the odd detached territory they get to use the Albertsons banner in strikes me as questionable at best and I am not sure it makes sense to use that banner in odd detached random states. Would it be better to literally rebrand everything to QFC and get a consistent marketing message going? QFC won't have baggage in SoCal or Phoenix, few will know what it is, if it executes correctly. We see how that all worked out for Haggen.

With that said isn't it ironic the solution for this merger is to take a tiny OR/WA primarily Seattle/Portland chain QFC and appear to run it on a significant expansion into various far flung states/territories. That sounds a lot like Haggen.

Customers are fickle. We already learned they won't give the new guy a second chance (Haggen, and now Amazon Fresh). The stores will not be perfect on day one, that is a certainty. If the customer is disappointed when they drive up to their Vons in Vegas and it's now QFC they'll magically notice all of the problems it's probably had for ages, worn out environment, bad prices etc. because now they're sensitive to the change which leaves them feeling uncertain about what was "their" store. They'll couple the existing bad with the inevitable changes that they'll disagree with, such as different flavored fried chicken or whatever else, and they will judge the store to be lacking then they will seek out another new store. Hence using the name in new markets is the kiss of death.

And creating a different variant of QFC that is actually affordable just makes for unhappy customers at the remaining expensive stores. Now they feel like they're being ripped off. Bad for everyone.

Outside of maybe Chicago, am I correct that everywhere that Albertsons exists there is a Kroger owned banner that the clientele should be somewhat familiar with? Even if it isn't necessarily current, such as areas Smith's retreated from that Albertsons still serves.

I think they should have to go back and relinquish the rights to the Albertsons banner entirely. I don't like how many stores are going to change names even if they're not sold, such as SoCal Albertsons having to become Vons or Ralphs. But I'd rather have that kind of noise and see a real, viable competitor be formed in the new C&S owned and operated Albertsons. They could even change the company name to Albertsons if they felt like it.

I can't help but wonder if they already know this, and they are shrewdly holding onto the Albertsons nameplate as a future bargaining chip as they plan to argue with regulators. It will be far easier for C&S to advertise in the PNW that Albertsons is "under new ownership" and whatever else is needed to portray that they are not the old brand people hate up there, while they enter the other markets with a consistent brand that has a good reputation.

That also might force the issue where a ton of rebranding will be required. Since for example every SoCal Albertsons will need to be rebranded, might as well just make them all Ralphs and kill off the Vons name too. Kill off Vons in Vegas too, just make them all Smith's. Or rebrand all Vons to Safeway and maintain two separate formats. They can keep Safeway going in Arizona, Oregon and Washington since Frys and Fred Meyer are so similar (bigger stores).

In the end they wind up with a viable banner for the "new competitive player" they're supposed to create, and they reduce marketing confusion for themselves.

[retailfanmitchell019]

It is possible QFC won't be the brand they use on divested stores but I have to think given they negotiated for the name they plan to use it... If they have fair prices when they make a first impression to the customers in Spokane, Anchorage, Medford, Boise, or various Portland suburbs it may work out okay. Plus I suspect the QFC name to be used in all "non-Albertsons" states as well like Nevada, New Mexico, Louisiana, and Texas. To that point the odd detached territory they get to use the Albertsons banner in strikes me as questionable at best and I am not sure it makes sense to use that banner in odd detached random states. Would it be better to literally rebrand everything to QFC and get a consistent marketing message going? QFC won't have baggage in SoCal or Phoenix, few will know what it is, if it executes correctly. We see how that all worked out for Haggen.

With that said isn't it ironic the solution for this merger is to take a tiny OR/WA primarily Seattle/Portland chain QFC and appear to run it on a significant expansion into various far flung states/territories. That sounds a lot like Haggen.

Customers are fickle. We already learned they won't give the new guy a second chance (Haggen, and now Amazon Fresh). The stores will not be perfect on day one, that is a certainty. If the customer is disappointed when they drive up to their Vons in Vegas and it's now QFC they'll magically notice all of the problems it's probably had for ages, worn out environment, bad prices etc. because now they're sensitive to the change which leaves them feeling uncertain about what was "their" store. They'll couple the existing bad with the inevitable changes that they'll disagree with, such as different flavored fried chicken or whatever else, and they will judge the store to be lacking then they will seek out another new store. Hence using the name in new markets is the kiss of death.

And creating a different variant of QFC that is actually affordable just makes for unhappy customers at the remaining expensive stores. Now they feel like they're being ripped off. Bad for everyone.

Outside of maybe Chicago, am I correct that everywhere that Albertsons exists there is a Kroger owned banner that the clientele should be somewhat familiar with? Even if it isn't necessarily current, such as areas Smith's retreated from that Albertsons still serves.

I think they should have to go back and relinquish the rights to the Albertsons banner entirely. I don't like how many stores are going to change names even if they're not sold, such as SoCal Albertsons having to become Vons or Ralphs. But I'd rather have that kind of noise and see a real, viable competitor be formed in the new C&S owned and operated Albertsons. They could even change the company name to Albertsons if they felt like it.

I can't help but wonder if they already know this, and they are shrewdly holding onto the Albertsons nameplate as a future bargaining chip as they plan to argue with regulators. It will be far easier for C&S to advertise in the PNW that Albertsons is "under new ownership" and whatever else is needed to portray that they are not the old brand people hate up there, while they enter the other markets with a consistent brand that has a good reputation.

That's a point I've been making since this merger drama started, the Albertsons banner with its 400+ stores should be spun off entirely to another buyer, along with QFC, Carrs, and Mariano's. I doubt C&S would run the stores well as they have little corporate retail, Ahold would be better (I suspect they are the backup buyer for divests other than C&S). Maybe if the interest rates get under control and the Canadian dollar goes up, Weston (Loblaw owner) or Empire Co. (Sobeys owner) would be a good buyer for the Albertsons banner.

This C&S divest project reminds me of the Fleming corporate retail project: own a few banners with scattered geography around the US, expand one of the banners far from its home turf (Rainbow Foods was expanded to NM/TX at one point, and QFC could be expanded to those states), license a nameplate (Albertsons is being licensed, like how Fleming licensed Food 4 Less from Yucaipa/Fred Meyer/Kroger).

Nobody is familiar with anything Kroger in Albertsons' East Coast territories, except for HT.

[marketreportblog]

I know it's on the opposite side of the country, but I suspect if I did price comparisons I would find that Harris Teeter pricing is similar to QFC pricing on some items. I can recall seeing some rather high prices on baked goods the last time I was there (for example, a 6 pack of english muffins is $5.29, compared to around $3.50 at Walmart.) They seem to consider their competition to be Lowes and Publix, both of which are probably even higher priced on many items.

Price comparisons? You're speaking my language! Here we go...

Thomas' 6-pack plain English muffins:
QFC (Seattle, WA) $5.29
Harris Teeter (Washington, DC) $3.99 on sale, $5.29 regular price
Walmart (Union, NJ) $3.48
ACME (Kenilworth, NJ) $2.49 on sale, $5.29 regular price
Big Y (Worcester, MA) $5.29
Food Bazaar (Bronx, NY) $5.29
Giant Eagle (Pittsburgh, PA) $4.69
Winn-Dixie (Brunswick, GA) $5.29
HEB (Victoria, TX) $3.62
Jewel Osco (Chicago, IL) $5.29 - buy one get one free
Fry's (Tucson, AZ) $3.99
Stater Bros (Twentynine Palms, CA) $3.99

And if we're looking for the cheapest overall instead, including sales...
QFC - Kroger brand - $3.29
Harris Teeter - Bays - $4.59
Walmart - Great Valu - $1.50
ACME - Thomas' - $2.49
Big Y - Big Y brand - $2.99
Food Bazaar - Bogopa brand - $1.50
Giant Eagle - Giant Eagle brand - $2.50
Winn-Dixie - Bays - $4.19
HEB - HEB brand - $2.58
Jewel-Osco - Jewel brand - $2.99
Fry's - Orowheat - $2.99
Stater Bros - Stater Bros brand - $1.99