Gelsons Sold to Japanese company PPIH

[Bagels]

Stater Bros. has a horrible reputation in both LA/OC, which is probably why it’s been stagnant over the past 20 years (it has slightly smaller store count than it did when it picked off numerous stores from Lucky/Albertsons). Many of its locations are in areas where Kroger and Albertsons/Safeway have withdrawn from, which obviously has greatly benefited them.

[Bluelightspecial]

I don't think I completely agree that Stater Bros has a terrible reputation in L.A. & O.C. Some of the current stores they have opened in LA and OC have been quite successful and high end. The store they took over from Vons in Pasadena is extremely successful. It also looks like a higher end store than the Vons it replaced.

[storewanderer]

Stater Bros. has a horrible reputation in both LA/OC, which is probably why it’s been stagnant over the past 20 years (it has slightly smaller store count than it did when it picked off numerous stores from Lucky/Albertsons). Many of its locations are in areas where Kroger and Albertsons/Safeway have withdrawn from, which obviously has greatly benefited them.

What is this horrible reputation exactly? I know the stores are not the greatest physical condition but my observation has been of well run well staffed and busy stores with very efficient employees. There is a real difference in the behavior and sense of urgency with the employees at Stater vs. the other major chains. I wasn't real thrilled with their pricing as of late (seemed like Ralphs was similarly priced on center store items) especially on produce and on my "would I shop here if I lived here" assessment when it came to Stater in most categories outside meat and maybe some limited other items that would be a no.

How does Stater's store count decline compare with the store count decline of Ralphs, Vons, and Albertsons in these areas? I suspect Stater's decline as a percent of total store count is much smaller than the other 3 chains.

[HCal]

Stater Bros. has a horrible reputation in both LA/OC, which is probably why it’s been stagnant over the past 20 years (it has slightly smaller store count than it did when it picked off numerous stores from Lucky/Albertsons). Many of its locations are in areas where Kroger and Albertsons/Safeway have withdrawn from, which obviously has greatly benefited them.

I don't think that's true at all. Stater Bros. has less of a presence in LA/OC (where Ralphs and Albertsons dominate) than in the inland empire where they are the dominant chain, but I think their reputation is just fine. All the conventional supermarkets are slowly reducing store count in SoCal as newer competitors open locations.

[veteran+]

Perhaps Stater's is changing?

I have never witnessed Stater's presence in an "upper class" setting. Are the numbers supporting the idea that Stater's has the know how to PROFITABLY SERVE communities like Laguna Beach?

If so that would be a sea change for them.

P.S. Pasadena? What part and what are the demographics? If they are killing it there, that would be amazing and signifies a market trajectory that their competitors should be worried about.

[retailfanmitchell019]

Perhaps Stater's is changing?

I have never witnessed Stater's presence in an "upper class" setting. Are the numbers supporting the idea that Stater's has the know how to PROFITABLY SERVE communities like Laguna Beach?

If so that would be a sea change for them.

P.S. Pasadena? What part and what are the demographics? If they are killing it there, that would be amazing and signifies a market trajectory that their competitors should be worried about.

This Stater Bros is on the border between Pasadena and Altadena. The demographics in that area are a mixture of blue collar areas west of the store, and upper middle-class areas east of the store. It does decent business
Laguna Beach is upper-middle class (some parts are wealthy), so Stater could make it work.
Stater has a store in wealthy San Clemente that does OK business. Not as strong as the Albertsons a couple exits down though.

[pseudo3d]

Stater Bros. has a horrible reputation in both LA/OC, which is probably why it’s been stagnant over the past 20 years (it has slightly smaller store count than it did when it picked off numerous stores from Lucky/Albertsons). Many of its locations are in areas where Kroger and Albertsons/Safeway have withdrawn from, which obviously has greatly benefited them.

What is this horrible reputation exactly? I know the stores are not the greatest physical condition but my observation has been of well run well staffed and busy stores with very efficient employees. There is a real difference in the behavior and sense of urgency with the employees at Stater vs. the other major chains. I wasn't real thrilled with their pricing as of late (seemed like Ralphs was similarly priced on center store items) especially on produce and on my "would I shop here if I lived here" assessment when it came to Stater in most categories outside meat and maybe some limited other items that would be a no.

How does Stater's store count decline compare with the store count decline of Ralphs, Vons, and Albertsons in these areas? I suspect Stater's decline as a percent of total store count is much smaller than the other 3 chains.

From an outsider looking in (never experienced an actual store), Stater Bros. doesn't seem to be particularly good at anything. They have rather plain, unexciting stores, perishables aren't anything to write home about, prices aren't great, smaller stores (not even a pharmacy, which they never really adopted anyway), probably some forgettable brand names in the center store area.

[klkla]

Stater Bros developed an updated prototype a couple years ago with improved perishable departments and a better variety of packaged goods, as well. These stores seem to be doing very well but only account for about 10% of their store base. Their stores in lower income areas are another story altogether and represent a much larger percentage of their store base. They are known for long lines, poor employee attitudes and dirty/poorly stocked stores in those areas.

[storewanderer]

Does Gelson's have any new stores in development at this point or is that done?

It is going to be really interesting to see what happens to Gelson's under this ownership.

[klkla]

Does Gelson's have any new stores in development at this point or is that done?

It is going to be really interesting to see what happens to Gelson's under this ownership.

If they do they haven't made it public. I don't think TPG was wanting to give them more money after the Haggen deal. The majority of those stores have under performed and I would be surprised if the return on investment was satisfactory.