Retail Watchers

klkla wrote: ↑January 10th, 2020, 5:44 pm According to that site the center opened in 1994. If Ralphs' lease expired last year that means they had a 25 year lease, which is normal but I'm surprised they didn't have any five year options, which is a standard practice for grocery store leases.

They probably did have an option but declined. I didn't research/verify it, but I read elsewhere that Kroger outright owns the (old) Ralphs up the street. The market rate adjustment on the lease was likely high enough that Kroger calculated it'd be more beneficial to close the store than to exercise an extension.

Caruso has at least two other centers with a Ralph's in them so I doubt it's an issue of Caruso wanting Ralphs out. More than likely they got a better offer from another high end supermarket like Bristol Farms or Whole Foods. It's interesting that on the city's building department web site it shows they have reviewed electrical and mechanical applications from January 2020. It doesn't list the applicant name. My guess (and I could definitely be wrong) is that Whole Foods will be taking the space. Some of the engineers on the permit applications are the same as Whole Foods is using for their new store under construction in Sherman Oaks.

veteran+ wrote: ↑January 10th, 2020, 7:34 am Anyone know how large this store is?

If it's BIG then I doubt Gelsons will move in.

I don't believe they are doing that well with the large format stores they acquired.

You're probably right. I just thought it would be ironic if they did.

FWIW the Ralphs is 43,983 sq. ft. and the existing Gelson's is 38, 119 sq. ft.

According to an article on Bloomburg this former Ralphs will be a new Amazon grocery store. Is Amazon going to go out and try to outbid conventional supermarkets on lease renewals now? Very different strategy from the beginning where they were taking vacant space like closed Toys R Us sites - certainly more expensive than going after undesirable vacant sites where desperate landlords might be willing to wheel and deal. This shows Amazon is willing to pay top dollar for sites for this unproven concept...

ClownLoach wrote: ↑February 16th, 2020, 3:31 pm According to an article on Bloomburg this former Ralphs will be a new Amazon grocery store. Is Amazon going to go out and try to outbid conventional supermarkets on lease renewals now? Very different strategy from the beginning where they were taking vacant space like closed Toys R Us sites - certainly more expensive than going after undesirable vacant sites where desperate landlords might be willing to wheel and deal. This shows Amazon is willing to pay top dollar for sites for this unproven concept...

Do you by any chance have a link to that article? It's an interesting development.

This article from October 1st 2019 suggests that the first stores would be in Woodland Hills (which we know about) and Studio City, so if it's the same property it looks like this has been in the works for a while.

https://www.cnbc.com/2019/10/01/amazon- ... ports.html

Link to Bloomberg article:

https://www.bloomberg.com/news/articles ... -new-chain

ClownLoach wrote: ↑February 16th, 2020, 5:26 pm Link to Bloomberg article:

https://www.bloomberg.com/news/articles ... -new-chain

Thanks!

The Bloomberg article is about the Woodland Hills Amazon supermarket, which is going into a former Toys'R'Us location. (About which we have another thread.) Is there some report about Amazon going into this former Ralphs?

J-Man wrote: ↑February 16th, 2020, 9:55 pm The Bloomberg article is about the Woodland Hills Amazon supermarket, which is going into a former Toys'R'Us location. (About which we have another thread.) Is there some report about Amazon going into this former Ralphs?

Keep reading the article. Way down it talks about Amazon going into the former Encino Ralphs. Also discusses Irvine and Thousand Oaks locations.

The Thousand Oaks location sounds like the former Vintage Grocers that took over a closed Bristol Farms. Also a Caruso property. Sounds like Rick Caruso believes more in Amazon than Ralphs for his shopping centers?

Amazon is so rich that the property owner knows that he can charge Amazon anything and Amazon will pay it.