New Safeway opening Burlington, CO

Alaska, Colorado, Idaho, Montana, Oregon, Utah, Washington, and Wyoming. No non-grocery posts.
Bagels
Assistant Store Manager
Assistant Store Manager
Posts: 823
Joined: August 20th, 2018, 11:54 pm
Has thanked: 1 time
Been thanked: 12 times
Status: Offline

Re: New Safeway opening Burlington, CO

Post by Bagels »

storewanderer wrote: December 1st, 2022, 12:21 am
buckguy wrote: November 30th, 2022, 6:15 pm
Bagels wrote: November 30th, 2022, 3:12 pm

Spartan was equally a terrible operator. I'd bet they've closed at least 2/3 of the stores they've acquired in the last 20 years. They seem to do well only in West Michigan, where they are the only traditional grocery store operator. Even there, they've closed the majority of even the large format modern stores they've picked up.
Spartan very quickly ran Seaway FoodTown into the ground.
Ouch. No wonder the combined wholesaler was so poor at retail. From what I saw of Spartan back before the Nash merger, they looked stronger... it was in West Michigan though... and they were higher priced and not merchandised as well compared to Jewel or an IN Kroger.
Merchandising mix was highly localized in Metro Detroit into the late 2000s/early 2010s, with local brands and suppliers dominating produce, bakery, deli, dairy and some meat & grocery (e.g. ice cream). For example, popular deli meats & cheeses + salads were dominated by two local companies, and the Detroit Produce Terminal supplied most produce so that a 5 lb. bag of potatoes bought from Kroger was branded as Aunt Mid’s (the largest supplier) instead of Kroger as elsewhere in the country.

Spartan acquired VG’s and immediately changed its merchandise mix to everything Spartan brand, which made it an outlier locally (VG’s was Spartan’s then-largest customer, but its perimeter used local brands – e.g. Lapari deli meats, cheeses & salads became Spartan, as did those 5 lb. bags of potatoes, as Spartan avoided the Detroit Produce Terminal / union labor). VG’s was well known for its high-quality deli (referred to as a kitchen) and bakery – Spartan eliminated the “kitchen” aspect of the deli (VG’s sold inexpensive, artisan-style made to order sandwiches and these became prepackaged generic Spartan variety) and converted everything in the bakery to the standard TopCo crap you could buy for less at Meijer.

IMO, Spartan/VG’s closely resembled today’s Albertsons – they’re a high-low retainer with a heavy emphasis on private label brands & genericy (Kroger as well now) perimeter. Spartan and Safeway were two of the largest retailers to publish printable private label coupons on their website in the late 1990s/early 2000s. Spartan introduced “customized” coupons in the early 2010s with its Yes! card (you downloaded them online, I don’t think they had an app). Included customer specific pricing as well. I’m sure they used the same vendor as Safeway.

I never really shopped at VG’s (the specific store opened as a Farmer Jack in 2001 after I moved to CA, and became a VG’s in 2007) but I did go in it when visiting family. Prices were high but they ran great sales, doubled coupons to $1 and had awesome printable private label coupons. Like I said, it reminded me very much of the modern Albertsons chain. Would’ve made a great pick-up for them had they not decided to sell.

(And while I think Spartan is a lousy operator overall, I should add that many of the stores/chains they purchased were struggling, so the number of closures shouldn’t be entirely surprising.)
Romr123
Assistant Store Manager
Assistant Store Manager
Posts: 693
Joined: February 1st, 2021, 4:26 pm
Has thanked: 37 times
Been thanked: 56 times
Status: Offline

Re: New Safeway opening Burlington, CO

Post by Romr123 »

Yeah, Spartan retail has been squeezed hard by 3 factors in SE Michigan (much less evident in western Michigan because no Kroger and no concentrated ethnic grocery ownership) by Meijer/Kroger on the one (conventional/hypermarket) hand, the Chaldean grocers (who primarily use Spartan Nash as their supplier) on another (ethnic/family owned/family operated/unusual supply chains) hand, and by the high-end, typically Italian grocers (Papa Joes/Westborn/Cantoro/Nino Salvaggio/Busch's) on the third.

Further, the geography of competition doesn't lend itself to Spartan's presence in the market (City of Detroit; large food desert, has been largely ceded to the Chaldean grocers who are pretty vocal about being competed with and would "vote with their dollars" and reduce usage of Spartan as their supplier); and suburbia (auto-dominated even in the inner-ring so there are always ways to access a better grocery solution; Meijer is a really good "no excuses" operator and Kroger is at hand if Meijer isn't convenient (primarily an issue out in the Grosse Pointes)

In Western Michigan they don't have Kroger to contend with so pretty comfortably coexist with Meijer and split the conventional space. Years ago Jewel had stores along I-94 but those ceased to be an issue 30 years ago.
User avatar
retailfanmitchell019
Assistant Store Manager
Assistant Store Manager
Posts: 891
Joined: November 10th, 2019, 11:17 am
Location: 760 area code
Has thanked: 39 times
Been thanked: 57 times
Contact:
Status: Offline

Re: New Safeway opening Burlington, CO

Post by retailfanmitchell019 »

More of a Groceteria topic, but Denver has historically been the westernmost outpost for Midwestern grocers.
Red Owl (from Minneapolis) had a presence there until the mid-1960s.
National Tea (Chicago based) came there in the 1950s acquiring Miller's, a local chain. They converted those stores to the Del Farm banner by the 70s. Loblaw transferred those stores into Western Grocers Inc, a wholesaler and subsidiary of Vancouver-based Kelly, Douglas and Company, Ltd (84% owned by Loblaw) in 1976. Western Grocers serviced stores in Colorado, New Mexico, and Wyoming. They supplied the Skaggs-Alpha Beta, Albertsons, and Smith's stores in CO/NM. Doing research, this wholesaler supplied the Hy-Top brand. Western Grocers was sold to SuperValu in 1982. SuperValu later brought Cub Foods stores to Denver, selling those stores by 2003 (King Soopers and Albertsons bought those stores). I think they also had a County Market store in Loveland that was sold to Albertsons around that time.
King Soopers was acquired by Dillons in the late 50s, and was ultimately swallowed by Kroger in 1983.
Nash Finch as noted had a distribution presence around Denver.

All in all, a Hy-Vee or AWG entry into Denver wouldn't surprise me, whether the Albertsons/Kroger merger happens or not, especially if Safeway's Denver division is sold, along with the distro.
storewanderer
Posts: 14379
Joined: February 23rd, 2009, 3:54 pm
Has thanked: 2 times
Been thanked: 298 times
Contact:
Status: Offline

Re: New Safeway opening Burlington, CO

Post by storewanderer »

I expect even if the Kroger merger does not go through, the Denver Division of Albertsons/Safeway is going to be something that does not continue to exist in its current form.

What will be interesting to see is if they opt to roll some of it (back) into Intermountain Division, like the Wyoming Stores and perhaps some of the Colorado Mountain units that do well. Also a real reach but if Colorado Springs is something they really want to keep they could attempt to roll that into United-TX.

I actually think the biggest problem this division has is its stores in Denver and Denver suburbs that are performing so poorly compared to surrounding King Soopers units, and have terrible execution. By far the worst execution in the entire chain. I don't understand what kind of awful management has allowed these stores to operate like this for so long. This has been going on for 10+ years, numerous stores have closed, yet nothing changes.
veteran+
Valued Contributor
Valued Contributor
Posts: 2234
Joined: January 3rd, 2015, 7:53 am
Has thanked: 1204 times
Been thanked: 72 times
Status: Offline

Re: New Safeway opening Burlington, CO

Post by veteran+ »

I am in the Denver area for 2 weeks.

Clearly most King Soopers are superior to any of the Safeways (from Arvada to Lone Tree) that I have been in.

But the Safeways are by no means "worse category" in the chain.

I find the Safeways to be better than most of the supermarkets in my home town area except for Pavilions (which is better than any Safeway I have seen in Denver).

BTW.....................those King Sooper employees are still so helpful (the opposite of their Ralphs kin).
storewanderer
Posts: 14379
Joined: February 23rd, 2009, 3:54 pm
Has thanked: 2 times
Been thanked: 298 times
Contact:
Status: Offline

Re: New Safeway opening Burlington, CO

Post by storewanderer »

veteran+ wrote: January 2nd, 2023, 5:42 am I am in the Denver area for 2 weeks.

Clearly most King Soopers are superior to any of the Safeways (from Arvada to Lone Tree) that I have been in.

But the Safeways are by no means "worse category" in the chain.

I find the Safeways to be better than most of the supermarkets in my home town area except for Pavilions (which is better than any Safeway I have seen in Denver).

BTW.....................those King Sooper employees are still so helpful (the opposite of their Ralphs kin).
I found the Safeway units to have very limited perimeters and that is my main basis for saying how poor they are compared to the rest of the chain; poorly rotated produce, meat that does not look fresh, bakeries that were not assorted well and stocked in a very limited manner, delis closing very early, and skeleton staffing throughout the store. Here and there, they have some that seem to be doing some degree of volume and feel somewhat healthy. Also the lack of customers in some of these stores makes me question how they survive at all...

They are certainly more orderly and clean than the typical (busy) SoCal Store, and better in stock (since business is so slow and they are larger facilities).

I suggest you visit Tony's in Denver area. Not a full line store though, really more specialty with meat focus but extensive bakery/deli. Service seemed a lot better at Centennial than Castle Pines but the product is there at both locations.
https://tonysmarket.com/locations/
Here is one I have for a concept: take something that has the fresh offer of Tony's and mix it with a Trader Joe's center store. I think that would be a very productive store.
User avatar
retailfanmitchell019
Assistant Store Manager
Assistant Store Manager
Posts: 891
Joined: November 10th, 2019, 11:17 am
Location: 760 area code
Has thanked: 39 times
Been thanked: 57 times
Contact:
Status: Offline

Re: New Safeway opening Burlington, CO

Post by retailfanmitchell019 »

storewanderer wrote: January 1st, 2023, 3:03 pm I expect even if the Kroger merger does not go through, the Denver Division of Albertsons/Safeway is going to be something that does not continue to exist in its current form.

What will be interesting to see is if they opt to roll some of it (back) into Intermountain Division, like the Wyoming Stores and perhaps some of the Colorado Mountain units that do well. Also a real reach but if Colorado Springs is something they really want to keep they could attempt to roll that into United-TX.
I've liked your idea of Front Range Safeway stores going to AWG. That would ultimately be better for them.
I think Safeway is #3 in Colorado Springs, behind Walmart and King Soopers.

I think the reason why Walmart is #2 in the Denver metro is because they built their supercenters there in the early 2000s, when Colorado was a more conservative, Walmart-tolerant state (less union strength). They entered at the right time. Had they entered Denver 5 years later with supercenters (around the time they started building more supercenters in CA), they would've ran into some trouble. I can imagine Walmart is stronger in the blue-collar and exurban areas of the metro (Adams County, Aurora, Castle Rock/Parker, etc.) then they are in Denver proper.
storewanderer
Posts: 14379
Joined: February 23rd, 2009, 3:54 pm
Has thanked: 2 times
Been thanked: 298 times
Contact:
Status: Offline

Re: New Safeway opening Burlington, CO

Post by storewanderer »

retailfanmitchell019 wrote: January 3rd, 2023, 3:58 pm
I've liked your idea of Front Range Safeway stores going to AWG. That would ultimately be better for them.
I think Safeway is #3 in Colorado Springs, behind Walmart and King Soopers.

I think the reason why Walmart is #2 in the Denver metro is because they built their supercenters there in the early 2000s, when Colorado was a more conservative, Walmart-tolerant state (less union strength). They entered at the right time. Had they entered Denver 5 years later with supercenters (around the time they started building more supercenters in CA), they would've ran into some trouble. I can imagine Walmart is stronger in the blue-collar and exurban areas of the metro (Adams County, Aurora, Castle Rock/Parker, etc.) then they are in Denver proper.
Safeway used to be #2 in Colorado Springs, it was one of the bright spots of the division. But King Soopers has opened a couple of new stores. The stuff rural surrounding Colorado Springs is true garbage (La Junta, Lamar, Canon City, Walsenburg) with interiors ranging 70s to mid 90's (though I suspect remodels to "Modern" decor are coming). Safeway/Albertsons completely rolled under in Pueblo; they closed 1 Albertsons and 2 Safeway there. The Safeway featured the cardboard Lifestyle interior (no clue why they were lifestyle stores) and still have 1 Albertsons and 2 Safeway (one of which features cardboard LIfestyle; the other of which Pueblo West looks rather healthy).

The thing in the early 00's in Denver is it was very crowded. You had Wal Mart getting going but not as strong as you'd think it would be (they were stronger in the rural markets in CO), Target doing Super Targets in metro Denver (and having strong success with them in the Denver market), and Kmart had multiple Super Kmart units (Supervalu supplied until right before the bankruptcy), most of which were also doing high volumes (Greeley was the worst performing one and one of the last to close too; Aurora was the best performing). Then there were a handfull of not very high volume Cub Stores in Colorado Springs and Denver (Colorado Springs were franchises; Albertsons bought that franchise). King Soopers and Safeway were sitting on a lot of 90's stores. King Soopers was always the hometown favorite and had large stores; Safeway seemed to always be trying to play catch up to King Soopers but was always many steps behind with smaller stores, way fewer customers, and just a dead vibe to the stores. Lifestyle program was not very successful in Colorado and that division had the highest percentage of non-lifestyle stores of any division when that program finally got shelved; I'd argue Lifestyle was more successful back at Dominicks or Genuardi's since they had way nicer stores to work with. Safeway has closed multiple under 10 years old stores in growing suburbs of Denver in the past 10 years; some tried the stripped "Amazin Low Price" program but that didn't help them. King Soopers, about the only time they close anything is when they do a relocation/rebuild or if the store is 50 years old. King Soopers has never closed any modern under 10 years old stores.
pseudo3d
Posts: 3851
Joined: November 12th, 2015, 7:01 pm
Has thanked: 5 times
Been thanked: 77 times
Status: Offline

Re: New Safeway opening Burlington, CO

Post by pseudo3d »

storewanderer wrote: January 3rd, 2023, 5:32 pm
retailfanmitchell019 wrote: January 3rd, 2023, 3:58 pm
I've liked your idea of Front Range Safeway stores going to AWG. That would ultimately be better for them.
I think Safeway is #3 in Colorado Springs, behind Walmart and King Soopers.

I think the reason why Walmart is #2 in the Denver metro is because they built their supercenters there in the early 2000s, when Colorado was a more conservative, Walmart-tolerant state (less union strength). They entered at the right time. Had they entered Denver 5 years later with supercenters (around the time they started building more supercenters in CA), they would've ran into some trouble. I can imagine Walmart is stronger in the blue-collar and exurban areas of the metro (Adams County, Aurora, Castle Rock/Parker, etc.) then they are in Denver proper.
Safeway used to be #2 in Colorado Springs, it was one of the bright spots of the division. But King Soopers has opened a couple of new stores. The stuff rural surrounding Colorado Springs is true garbage (La Junta, Lamar, Canon City, Walsenburg) with interiors ranging 70s to mid 90's (though I suspect remodels to "Modern" decor are coming). Safeway/Albertsons completely rolled under in Pueblo; they closed 1 Albertsons and 2 Safeway there. The Safeway featured the cardboard Lifestyle interior (no clue why they were lifestyle stores) and still have 1 Albertsons and 2 Safeway (one of which features cardboard LIfestyle; the other of which Pueblo West looks rather healthy).

The thing in the early 00's in Denver is it was very crowded. You had Wal Mart getting going but not as strong as you'd think it would be (they were stronger in the rural markets in CO), Target doing Super Targets in metro Denver (and having strong success with them in the Denver market), and Kmart had multiple Super Kmart units (Supervalu supplied until right before the bankruptcy), most of which were also doing high volumes (Greeley was the worst performing one and one of the last to close too; Aurora was the best performing). Then there were a handfull of not very high volume Cub Stores in Colorado Springs and Denver (Colorado Springs were franchises; Albertsons bought that franchise). King Soopers and Safeway were sitting on a lot of 90's stores. King Soopers was always the hometown favorite and had large stores; Safeway seemed to always be trying to play catch up to King Soopers but was always many steps behind with smaller stores, way fewer customers, and just a dead vibe to the stores. Lifestyle program was not very successful in Colorado and that division had the highest percentage of non-lifestyle stores of any division when that program finally got shelved; I'd argue Lifestyle was more successful back at Dominicks or Genuardi's since they had way nicer stores to work with. Safeway has closed multiple under 10 years old stores in growing suburbs of Denver in the past 10 years; some tried the stripped "Amazin Low Price" program but that didn't help them. King Soopers, about the only time they close anything is when they do a relocation/rebuild or if the store is 50 years old. King Soopers has never closed any modern under 10 years old stores.
SuperValu straight up owned a bigg's hypermarket in the Denver area, but they closed it around 2003 and sold the site to Wal-Mart Supercenter (demolished and rebuilt), probably because the whole chain wasn't a success that they thought it was going to be in the late 1980s/early 1990s.

The rest of the Cub Foods stores were closed in 2003. The article mentions Kroger (King Soopers) bought two, I guess Albertsons bought some too?
storewanderer
Posts: 14379
Joined: February 23rd, 2009, 3:54 pm
Has thanked: 2 times
Been thanked: 298 times
Contact:
Status: Offline

Re: New Safeway opening Burlington, CO

Post by storewanderer »

pseudo3d wrote: January 22nd, 2023, 10:55 am

SuperValu straight up owned a bigg's hypermarket in the Denver area, but they closed it around 2003 and sold the site to Wal-Mart Supercenter (demolished and rebuilt), probably because the whole chain wasn't a success that they thought it was going to be in the late 1980s/early 1990s.

The rest of the Cub Foods stores were closed in 2003. The article mentions Kroger (King Soopers) bought two, I guess Albertsons bought some too?
Cub around Denver was corporate op, but Cub in Colorado Springs/Pueblo was a franchise. Albertsons bought the Colorado Springs/Pueblo franchise in the 90's. For instance 1545 S. Prairie in Pueblo was a Cub, then Grocery Warehouse, then LLC rebranded to Albertsons, then closed under Safeway. That 1545 S. Prairie was somewhat busy but not busy enough for its size. That could have been remodeled again into a nice, large, full size conventional store. For some reason they closed it and kept a small dive of a cardboard lifestyle Safeway that did almost no volume and should have been closed long ago (even for its size it was not doing enough business) open across the street. I suspect the shift of a few customers from the closed Albertsons over to the Safeway allows the Safeway to barely limp along. Really one of those two stores should have been divested but recall CO did not have to divest anything in the Safeway/Albertsons merger.
Post Reply