Retail Watchers

I keep finding when I go to markets that have Albertsons format and a Safeway format, the Albertsons format has a much wider mix of center store items (not just drug, but the entire center store) than the Safeway format.

Conversely it seems like the Safeway format has larger produce and bakery mix than the Albertsons format.

Smiths center store has been leaving a lot to be desired on mix for quite a while (drug mix is strong), probably the last 15 years. I think their mix has gotten better the past few years as Kroger has pushed more natural/organic product in, but still leaves some things to be desired.

When Ralphs was in NorCal, I remember their mix at first seemed strong but over time especially as private label shifted to Kroger it seemed to get scaled way back. Ralphs had a massive variety of center store grocery private label and a ton of sizes, little half size cans, etc.

Stater has to be winning on operations. They staff their stores with efficient hard working people who are professional in appearance and attitude, execute well, and have "fair" prices. They do not have outrageous or above market prices, but they aren't as low as they make them out to be either. High customer traffic enables product to be fresh. They are the closest thing to the old ASC Lucky, but I think Lucky had much better pricing and private label than Stater has.

CalItalian wrote: ↑September 27th, 2019, 10:35 pm Stater Bros has more product variety than Ralphs by far. Ralphs has the least. Vons/Albertsons in-between. The product assortment at Ralphs is constantly changing something I don't see at Stater Bros.. Ralphs use to have the largest product variety. Quite frankly, Ralphs is maddening these days to shop in since they are constantly dropping products.

Apparently the great 'rationalization' of SKU started as the Great Recession rolled on in 2009 - 2010 based on using things like shopper card data, improved sales at Walmart, etc.

Although many suppliers gnash their teeth at mention of SKU rationalization, supermarket operators regard the process as necessary. Most of the alternative food retailers they face carry fewer SKUs than they do. Costco carries about 4,000 SKUs while even a modest supermarket carries about 25,000. Fewer products mean purchasing and logistical efficiencies. With fewer products to sort and stock, fewer expensive employee hours are required to keep stores in operation. For supermarkets, SKU rationalization not only means less labor and supply chain cost, but also lower expenses related to damaged or disappeared product. Shrink, as the expense is termed, represents a real problem particularly for retailers that stock food.

(emphasis mine)

They can "SKU Rationalize" their way straight out of many customer's shopping habits. There are simply too many other options that sell food. What is funny is how it is 'okay' by the customer for stores like Costco, Trader Joe's, Aldi, etc. to operate with a very rationalized mix. But when a mainline grocery retailer does it, people are not happy. Look back at Safeway buying Dominicks, Randalls, etc. when they did that. It is like the mainline grocery retailer is held to a higher standard, due to how they have done things in the past.

storewanderer wrote: ↑September 28th, 2019, 9:25 am They can "SKU Rationalize" their way straight out of many customer's shopping habits. There are simply too many other options that sell food. What is funny is how it is 'okay' by the customer for stores like Costco, Trader Joe's, Aldi, etc. to operate with a very rationalized mix. But when a mainline grocery retailer does it, people are not happy. Look back at Safeway buying Dominicks, Randalls, etc. when they did that. It is like the mainline grocery retailer is held to a higher standard, due to how they have done things in the past.

I think it depends on how and what gets "rationalized." When Safeway acquired Dominick's, customers didn't complain because the Dominick's brand green beans now had a different label or that instead of four sizes of Dominick's ketchup there were now two. They complained because the Dominick's brand Italian foods disappeared and were replaced with a Safeway brand that was bland. They complained because the locally-produced Mexican foods were replaced with Safeway Select products that didn't even come close to tasting the same. Or even tasting like Mexican food. (The Mexican products were made by a company owned by a Mexican family - one of those success stories that happens in cities like Chicago).

Costco sells a limited assortment and everyone knows it. You don't shop there for specialty foods. When they discontinue an item or switch brand, the loyalists who shop there because Costco is looking out for them are happy that Costco is getting them the best deal. People like me are upset because a specific item that they love is gone. (Don't get me started on Tassos vs Costco green olives) Trader Joe's does get flack from its customers when they discontinue an item. Aldi is known for selling basics. The mainline supermarkets make their names by purportedly selling a wide variety. So when they start discontinuing customer favorites they, in essence, are going against what they advertise themselves to be.

Official closing date is Feb. 26. Aldi and Planet Fitness will replace.
https://www.sandiegouniontribune.com/po ... ns-closing

I wonder why this Vons wasn't divested instead of the nearby Albertsons after the merger?

retailfanmitchell019 wrote: ↑February 2nd, 2020, 7:11 pm I wonder why this Vons wasn't divested instead of the nearby Albertsons after the merger?

IIRC, Albertsons/Vons didn't get to choose the locations that were divested. Albertsons had the opportunity to re-acquire its (former namesake) divested store from Haggen, but choose not to.

Don't forget that formal planning/integration for the Albertsons/Vons (Safeway) merger began six years ago. Since then, the nearby Walmart expanded into a Supercenter, and Henry's converted into Sprouts. Sprout's had a lengthy, strong period of same-sales growth - especially for converted locations - as its reputation grew (which I believe is far overrated, but that's not relevant to this thread). It's probable that, even though the consolidated Vons was the last traditional full-service supermarket in the area, sales have declined. The lease rates almost unquestionably swelled, and Albertsons choose to walk away from the market.

Bagels wrote: ↑February 3rd, 2020, 8:01 amIIRC, Albertsons/Vons didn't get to choose the locations that were divested.

There was a negotiation with the FTC and pretty much they were allowed to choose. The FTC identifies which neighborhoods would not have enough competition and then Albertson's proposed which stores it wanted to divest. The FTC generally allows this unless there is something egregious in their proposal.

Bagels wrote: ↑February 3rd, 2020, 8:01 am...and Albertsons choose to walk away from the market.

They aren't really walking away from the market. There's another VONS 3.75 miles away and at least 4 other stores within 5 miles. This store is far off the freeway and toward the eastern edge of Poway.

Vons might be coming back...
https://www.sandiegouniontribune.com/po ... cil-agenda