Albertsons Exiting Utah

[storewanderer]

36 stores sold to Associated Food Stores. Supervalu is keeping 3 stores in St. George region. I wonder if those are being transferred to the Southern California Division?

This is a very, very interesting transaction.

[Brian Lutz]

Without knowing where all of the stores in question are located, it looks like Associated Food Stores runs a relatively small number of corporate stores in Utah under various names, and would probably be using those names to rebrand the Albertson's stores. Macey's (10 stores in the Salt Lake area) is the largest of these, but their format (fairly warehouse-like, with a number of odd additions to the traditional store like a significant food storage section) probably wouldn't translate well to the smaller Albertson's stores.

You can see a few pictures I took of the inside of a Macey's store in Provo at this Blog post. I suspect the rebranded Albertson's stores won't look like this.

[Alpha8472]

It looks like Supervalu is just giving up in many of their markets right now.

The Kong Kone at Maceys looked insane! Everything looks so cheap in Utah.

It will be interesting to see what name they will use on the stores. Most likely they will not convert the Albertsons stores into warehouse type stores. I think they will stick with a supermarket with a full selection of groceries as opposed to a warehouse type store with limited food selection. With Albertsons being gone, I think that customers will benefit from price reductions.

I read a news article and customers did indeed comment on the high prices at Albertsons. They also claimed that prices were lower at Smith's and Maceys.

[krogerclerk]

Given Albertson's is running 2nd place in Utah, this exit is odd. St. George would be closer to the Vegas ABS which are part of the Southern Cal division or they could be transferred to ABS LLC Southwest Division, and cease being operated by SVU.

ABS LLC's website shows Utah as part of the Southwest division, though I don't know of the LLC operating any stores in Utah.

Albertson's has a long presence in the Wasatch Front, and ties to the Mormon community as does Smith's and Harmon's. This would be a good time for Safeway to return to Utah, as they would fill an upscale niche.

ABS LLC seems to no longer be shedding stores, the Publix transaction in Florida likely gave them a strong cash infusion, but they are left with a limited presence in many of their markets. ABS LLC has even stated they are considering expansion and acquisitions. Perhaps reuniting the two Albertson's under one corporation could be possible, as ABS LLC is hq'd in Boise, ID. Given that SVU took over ABS stronger divisions, the irony is that ABS LLC is ran more like the ABS of the 90s.

[Brian Lutz]

The Kong Kone at Maceys looked insane! Everything looks so cheap in Utah.

Especially coming from up here in the Seattle area where the cost of living is fairly high, things do seem to be surprisingly cheap in Utah. I think a gallon of gas averages 30 cents less than up here, housing is cheaper by a third over here, and the sales tax is a lot lower (although they do have state income tax, unlike Washington, and WA doesn't charge sales tax on groceries.) A couple of months ago there was actually a job interview in Salt Lake that could have had me moving there, but it never panned out.

And in spite of the warehouse-like aesthetic of the Macey's stores (I visited one in Orem as well) I was actually impressed by them. They have a large deli section, the prices in general were quite good, and the employees were friendly. I doubt a place like that would fly in a more upscale area like here, but the format seems to work quite well in the Utah market.

[storewanderer]

I don't think this sale looks good for Supervalu at all. Utah was one of Albertsons original territories and now these guys are exiting? Plus, Albertsons had what looked like a solid position in that market, though they were getting it from various sides between Wal Mart, the current Associated independents, and Smiths. This is a very, very strong group of independents under Associated.

Associated is running corporate stores under the names Dans, Dicks, Maceys, and Lins. Dicks and Dans seemed pretty much like a standard conventional. I'm not sure about Lins. I believe all 4 of these operations were previously independents that Associated purchased one transaction at a time.

The other half of this story and after this it makes complete sense, is this:

From: http://www.abc4.com/mostpopular/story/A ... FTydw.cspx

"Parkinson announced that Dick King, senior vice president, Associated Food Stores, will assume the additional responsibilities of president of the new entity.

King has worked for Associated Food Stores since 2001. King has a distinguished career in the retail food industry, including 36 years at Albertsons, where he served as the president and chief operating officer.Customers at the new stores will see additional value and an increased focus on fresh products. The stores will benefit from the substantial buying power of Associated Food Stores and because of these economies of scale, shoppers will see better value.

“We will drop prices on a significant number of items in the store and begin carrying the popular Western Family brand,” said King. “In today’s market, customers want top-quality products at a great price. Our first priority will be to deliver on both fronts.”

The former Albertsons stores will receive product via Associated Food Stores’ Retail Support Center in Farr West, Utah. The warehouse facility is more than one million square feet and has the capacity to service the new stores and its current membership.

“Having spent significant time in these stores and with many of the current employees, we are excited about joining the Albertsons team members with the group at Associated Food Stores,” said King. “Both groups have incredible strengths that will provide customers with a tremendous grocery shopping experience.”"

[storewanderer]

I guess LLC is still operating the two Super Saver Stores in Utah. I had good reason to believe these stores were on their way out when I saw them, but I guess they are still open. How strange. One of them had a gas station and I do know that is now closed.

http://s196.photobucket.com/albums/aa11 ... 0Food%204/

http://s196.photobucket.com/albums/aa11 ... aver%20Fo/

Both are previous Fleming Food 4 Less units.

[storewanderer]

Here is the ad for those Associated corporate run stores. Compared to the ad Albertsons is currently running in Utah, well, there is no comparison.

http://maceys.mywebgrocer.com/CircularM ... uc=6E0A438

[klkla]

Here is the ad for those Associated corporate run stores. Compared to the ad Albertsons is currently running in Utah, well, there is no comparison.

http://maceys.mywebgrocer.com/CircularM ... uc=6E0A438

It looked like a pretty simple item/price ad. Gets to the point with aggressive prices and no B.S. But, I also noticed they are closed on Sundays. Is ALbertson's also closed on Sunday in Utah?

[Alpha8472]

Albertsons stores in Utah are all open on Sundays. By closing on Sundays, they could lose a lot of money.

However, Utah is an unusual case. Over 60 percent of the population is Mormon. Were Albertsons stores in the state actually doing much business on Sundays?

It will be interesting to see whether or not the stores will close on Sundays when the names are changed. Also, Mormons have food restrictions. Mormons cannot consume caffeine or use tobacco. They don't drink coffee, tea, or caffeinated soda. I assume that these items must not sell well at supermarkets in Utah.