Albertsons/Safeway 2018 & 2019: Openings and Closings

This is the place for general and miscellaneous posts on topics which might extend past the boundaries of any specific region. No non-grocery posts.
rwsandiego
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Re: Albertsons/Safeway 2018 & 2019: Openings and Closings

Post by rwsandiego » May 12th, 2019, 12:06 am

The Jewel-Osco at 61st and Cottage Grove in Chicago's Woodlawn neighborhood opened in March. Also, the Safeway in San Tan Valley, AZ opened back in December. Was there a few weeks ago and it was pretty much empty. The area is still developing, so it would not surprise me if the store took a year or so to pick up.

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Re: Albertsons/Safeway 2018 & 2019: Openings and Closings

Post by storewanderer » May 12th, 2019, 7:27 pm

Two more Arizona stores closing:

2740 East University, Mesa (didn't know AZ got any of these posterboard style sign lifestyle stores... wow)
750 East Guadalupe, Tempe (seemed like this store held on and did well enough for quite a while longer than one would have expected considering the location)

arizonaguy
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Re: Albertsons/Safeway 2018 & 2019: Openings and Closings

Post by arizonaguy » May 12th, 2019, 7:58 pm

storewanderer wrote:
May 12th, 2019, 7:27 pm
Two more Arizona stores closing:

2740 East University, Mesa (didn't know AZ got any of these posterboard style sign lifestyle stores... wow)
750 East Guadalupe, Tempe (seemed like this store held on and did well enough for quite a while longer than one would have expected considering the location)
The Mesa store was in a bad neighborhood and has an Albertsons 1 mile away. Almost every Safeway banner closure recently has been in a location similar to this (except for 59th Ave. / Thunderbird which was a bit of a head scratcher).

I'm surprised about the Tempe store. This closure feels a lot like the Tatum / Shea Albertsons that closed a year or so ago. Decent demographics, decent location, but a LOT of nearby competition.

With the closures of so many "overlapping" stores, I think we're nearing the point of banner consolidation in Arizona. It wouldn't surprise me to see everything bannered as Safeway within the next year or so.

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Re: Albertsons/Safeway 2018 & 2019: Openings and Closings

Post by storewanderer » May 13th, 2019, 9:14 pm

arizonaguy wrote:
May 12th, 2019, 7:58 pm
storewanderer wrote:
May 12th, 2019, 7:27 pm
Two more Arizona stores closing:

2740 East University, Mesa (didn't know AZ got any of these posterboard style sign lifestyle stores... wow)
750 East Guadalupe, Tempe (seemed like this store held on and did well enough for quite a while longer than one would have expected considering the location)
The Mesa store was in a bad neighborhood and has an Albertsons 1 mile away. Almost every Safeway banner closure recently has been in a location similar to this (except for 59th Ave. / Thunderbird which was a bit of a head scratcher).

I'm surprised about the Tempe store. This closure feels a lot like the Tatum / Shea Albertsons that closed a year or so ago. Decent demographics, decent location, but a LOT of nearby competition.

With the closures of so many "overlapping" stores, I think we're nearing the point of banner consolidation in Arizona. It wouldn't surprise me to see everything bannered as Safeway within the next year or so.
I don't think they will eliminate the Albertsons banner in Arizona. Short of closing all of those stores down, anyway. Just like they haven't eliminated the Vons banner in Las Vegas. These banner changes cost money and this company needs to be careful how it spends money. I don't think banner conversions would help their business in those markets. It is much better off spending on new stores, remodel, or investments in price, than wasting money on banner conversions. They already have the synergy with combined ads, combined systems, combined merchandising, etc. At this point a banner consolidation would tidy things up but I don't feel like it would get them much in the way of synergies or ongoing cost savings.

I do not think the banner conversions did anything for them in Colorado (may have even hurt them...). And they continue with both banners in a couple rural CO markets as well as up in WY so it appears that division put the brakes on banner conversions mid-way through the process. There is a reason.

In some markets like OR/WA where I think Albertsons has a poor reputation and clearly lower volume stores than Safeway in those markets, I think a banner conversion of Albertsons Stores to the Safeway banner would help business there (except in Southern Oregon where Albertsons seems stronger), yet even in those markets, they are not doing it at this time.

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Re: Albertsons/Safeway 2018 & 2019: Openings and Closings

Post by jamcool » May 14th, 2019, 6:30 am

Also Safeway is Union in AZ, Albertsons is non-Union

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Re: Albertsons/Safeway 2018 & 2019: Openings and Closings

Post by SamSpade » May 15th, 2019, 12:32 pm

"Lucky" Low Prices in El Centro, CA is closing. This leaves the Albertsons-operated Lucky stores with only one store left in California, in South Gate, CA.

https://www.ivpressonline.com/news/loca ... 00f7e.html (unfortunately behind a paywall so I don't have much)

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Re: Albertsons/Safeway 2018 & 2019: Openings and Closings

Post by SamSpade » May 19th, 2019, 3:30 pm

Here's an article link that is not behind a paywall.
Usual concerns, no other grocer within walking distance of older residents, etc.

Sounds like the neighborhood may be changing, but also has historically been lower-income.

One quoted shopper says that it was cheaper than VONS. Could that really be true?
https://www.tribwekchron.com/single-pos ... -Neighbors

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Re: Albertsons/Safeway 2018 & 2019: Openings and Closings

Post by storewanderer » May 19th, 2019, 5:53 pm

The Lucky was probably on a different program for meat and produce than Vons (lower prices and different mix). But their ad looks like a standard Vons ad, so maybe that changed recently. If so that may be why the store finally tanked.

Albertsons has had a "discount/Hispanic" format running in SoCal since the 90's. It started as Max/Monte Mart then got Super Saver added to it after the ASC Merger. At its height it had 10-15 stores. These were always low volume stores on their way to closure. Then that "Lucky" thing that came up when Grocery Outlet attempted to trademark the name. Same program all those years.

I would expect a different hispanic focused grocer to take the spot.

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