WinCo headed for Texas?

[jamcool]

WinCo may be entering the DFW market...

http://www.progressivegrocer.com/top-st ... as-market/

[krogerclerk]

DFW has long been a tough market, and entering a distant market has proven the undo for many otherwise storng players.
Safeway has managed to stabilize share at Tom Thumb, but Kroger and Wal-Mart have made considerable gains while Albertson's has slimmed down in DFW. If H-E-B were to aggressively enter DFW beyond the handfull of Central Markets they operate, Tom Thumb and Albertsons are likely the big losers. Local Minyard has all but imploded, while Fiesta Mart has the ethic business sowed up. I don't see room for WinCo as a price player in a Walmart dominated market either.

[storewanderer]

What I see with WinCo is prices are being escalated in existing markets in order to support "teaser" super low prices in their new markets.

We'll see how everything plays out. This is a very good, efficient operator... they do many things well... but poking at enough Kroger divisions might not be the best idea. Somehow, between Smiths, Frys, and Kroger Texas, they will figure out how to compete with this chain. This isn't like Fred Meyer and QFC that generally attract a higher end customer than WinCo.

[VibeGuy]

I'm wondering if there's a bit of shift in Winco strategy in play....they've built out stores with no service bakery/pizza which are about a third smaller overall than the archetypical locations. Previously, Winco's growth strategy has been few, large stores many miles apart....perhaps now, to make a name for themselves in an area, they can build some with the larger plan and fill in with the smaller plan, looking more like a conventional grocer.

Dallas would clearly represent a market where they'd need to build distro capacity - right now, they've got fresh food capacity in Modesto, Boise and Woodburn, with HBA and non-perishable in Myrtle Creek (Southern OR, I-5 corridor). A little Googling indicates the maximum distance between existing DCs and stores is about 700 miles (or over one day's legal drive for a semi). Assuming a 700 mile radius from the Metroplex, building out some distribution gives you coverage from roughly Denver down to all of New Mexico, all the way over to include all of Alabama and Mississippi, including all of Missouri, Kansas...in all, a pretty compelling footprint. Woodburn serves ~40ish stores, give or take, so I think it's *entirely* possible to justify a new DC to serve 40 stores in that radius, and I bet you can easily site 80 of them without even blinking.

[storewanderer]

I believe they were looking at distribution somewhere in New Mexico. Just something I heard, not something I ever saw released.

[arizonaguy]

I believe they were looking at distribution somewhere in New Mexico. Just something I heard, not something I ever saw released.

They're opening up a distribution center in Phoenix.

Don't think a DC in Phoenix would work for DFW though.

[jamcool]

I believe they were looking at distribution somewhere in New Mexico. Just something I heard, not something I ever saw released.

They're opening up a distribution center in Phoenix.

Don't think a DC in Phoenix would work for DFW though.

You can supply NM and W Texas from a Phoenix warehouse. Albertsons is apparently supplying its handful of Colorado stores from Phoenix.

[jamcool]

The first WinCos will be in the DFW area...

http://supermarketnews.com/retail-amp-f ... s-openings

[terryinokc]

Does anyone know who their distributor/wholesaler will be? I plan on making a trip down there from Oklahoma City to check it out. My guess would be Grocers Supply from Houston or AWG.