Is Safeway going to unload the Vons division?

[CalItalian]

Safeway is exiting Chicago (Dominick's). Will the Vons division and Safeway Arizona division be next? Wall Street Journal says maybe.

http://couponsinthenews.com/2013/10/10/ ... s-be-next/

[storewanderer]

Vons, I just don't see it...

Denver....

[arizonaguy]

Arizona isn't a horrible division either (they've maybe closed 4 stores in the last 5 years).

[storewanderer]

Performance in AZ is not good for Safeway. A few good stores scattered around. Lucky for them, expenses are low and that helps them stay able to keep stores open doing 1/3 to 1/4 the volume of nearby Frys Stores.

[CalItalian]

Texas and Mexico were also mentioned (as possible areas for Safeway to shed) in the article in the WSJ on Friday.

[storewanderer]

In looking at their last quarterly financials, the income from the Mexico interest fell in half. I wonder what is going on there.

Safeway has had an equity interest in Casa Ley for years and Vons previously had a hispanic format, Tiangus, pre-Safeway. A decade ago in SoCal there were not many hispanic format stores and the same goes in AZ. Safeway, between the Casa Ley involvement and some intelligence from the unprofitable Vons Tiangus format, should have gone heavy into hispanic format stores in SoCal, Central California, and Arizona. Now we have seen probably 100 or so nice full hispanic format stores open up in those markets. Great stores. Pros, Vallarta, Superior, etc. All very successful (well, Pros is bankrupt, but, they sure run a good store). But, again, no. Safeway will have no part of it. Safeway operates with one format and one format only. The "lifestyle" store. And the merchandising will be largely the same whether the store is in California, Pennsylvania, DC, or Texas. They will make a few rows here and there to flex in some local brands, but the selection and pricing is always poorer than every competitor on those local/regional brands.

[submariner]

In looking at their last quarterly financials, the income from the Mexico interest fell in half. I wonder what is going on there.

Safeway has had an equity interest in Casa Ley for years and Vons previously had a hispanic format, Tiangus, pre-Safeway. A decade ago in SoCal there were not many hispanic format stores and the same goes in AZ. Safeway, between the Casa Ley involvement and some intelligence from the unprofitable Vons Tiangus format, should have gone heavy into hispanic format stores in SoCal, Central California, and Arizona. Now we have seen probably 100 or so nice full hispanic format stores open up in those markets. Great stores. Pros, Vallarta, Superior, etc. All very successful (well, Pros is bankrupt, but, they sure run a good store). But, again, no. Safeway will have no part of it. Safeway operates with one format and one format only. The "lifestyle" store. And the merchandising will be largely the same whether the store is in California, Pennsylvania, DC, or Texas. They will make a few rows here and there to flex in some local brands, but the selection and pricing is always poorer than every competitor on those local/regional brands.

Safeway has been catering to the Hispanic market in SoCal with the Food4Less banner. While not explicitly a hispanic format, most feature a Carneceria and/or Tortilliria.

[marshd1000]

In looking at their last quarterly financials, the income from the Mexico interest fell in half. I wonder what is going on there.

Safeway has had an equity interest in Casa Ley for years and Vons previously had a hispanic format, Tiangus, pre-Safeway. A decade ago in SoCal there were not many hispanic format stores and the same goes in AZ. Safeway, between the Casa Ley involvement and some intelligence from the unprofitable Vons Tiangus format, should have gone heavy into hispanic format stores in SoCal, Central California, and Arizona. Now we have seen probably 100 or so nice full hispanic format stores open up in those markets. Great stores. Pros, Vallarta, Superior, etc. All very successful (well, Pros is bankrupt, but, they sure run a good store). But, again, no. Safeway will have no part of it. Safeway operates with one format and one format only. The "lifestyle" store. And the merchandising will be largely the same whether the store is in California, Pennsylvania, DC, or Texas. They will make a few rows here and there to flex in some local brands, but the selection and pricing is always poorer than every competitor on those local/regional brands.

Safeway has been catering to the Hispanic market in SoCal with the Food4Less banner. While not explicitly a hispanic format, most feature a Carneceria and/or Tortilliria.

I think you have it wrong here. Kroger/Ralphs owns the Food4Less banner!

[submariner]

Safeway has been catering to the Hispanic market in SoCal with the Food4Less banner. While not explicitly a hispanic format, most feature a Carneceria and/or Tortilliria.

I think you have it wrong here. Kroger/Ralphs owns the Food4Less banner!

D'oh! It was a long weekend.

[arizonaguy]

Safeway has been catering to the Hispanic market in SoCal with the Food4Less banner. While not explicitly a hispanic format, most feature a Carneceria and/or Tortilliria.

I think you have it wrong here. Kroger/Ralphs owns the Food4Less banner!

D'oh! It was a long weekend.

In Arizona, Bashas does the same thing with its Food City banner. Safeway seems to be trying to be a one size fits all.