Crucial times for Shoppers

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Re: Crucial times for Shoppers

Post by storewanderer »

mjhale wrote: February 17th, 2023, 1:42 pm I have to wonder if UNFI is realizing that the current stable of Shoppers stores could actually be successful in the long run. When Supervalu sold off to UNFI they purged the stores that were in upscale neighborhoods that didn't theoretically fit the Shoppers "image" along with stores where they were facing stronger competition from other traditional grocers. That left them with stores where they don't have a lot of nearby competition and/or they "fit" the neighborhood they operate in. I go to the Fairfax County store on Route 1 and the store in College Park, MD every so often if I am having a colossal donut urge (lol). Unless I am there super early in the morning the stores seem to have good volume and people are buying good amounts of stuff, not just a thing here or there. If UNFI can find success with Shoppers in the markets they are in, I'm all for it. Those area will retain access to a traditional grocery store for whatever time Shoppers is around.
This has been my general observation of the Shoppers locations I have been into (which isn't many). They did not strike me as struggling stores, just not overly successful stores (they were no Giant, and probably doing less volume than Safeway). They were clean stores that were generally well stocked and had perimeters that were orderly and the products available looked to be acceptable quality at what I'd call fair prices. They always had traffic and seemed adequately staffed. I suspect sales mix is an issue at Shoppers that causes the volumes to look low- customer base is buying more lower cost product so sales numbers aren't as strong even on high traffic. I think Farm Fresh in Richmond had a similar problem.
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Re: Crucial times for Shoppers

Post by mjhale »

storewanderer wrote: February 18th, 2023, 12:21 am This has been my general observation of the Shoppers locations I have been into (which isn't many). They did not strike me as struggling stores, just not overly successful stores (they were no Giant, and probably doing less volume than Safeway). They were clean stores that were generally well stocked and had perimeters that were orderly and the products available looked to be acceptable quality at what I'd call fair prices. They always had traffic and seemed adequately staffed. I suspect sales mix is an issue at Shoppers that causes the volumes to look low- customer base is buying more lower cost product so sales numbers aren't as strong even on high traffic. I think Farm Fresh in Richmond had a similar problem.
Shoppers current batch of stores seems to serve a solidly blue collar type of clientele. Add to that in certain areas immigrants from other places that are not shopping at ethnic grocers for whatever reason. The Shoppers stores I have been to seem to have larger produce sections with a greater variety of ethic type produce than a traditional grocer, though not as much variety as an ethnic store. I would be curious to know how the McKay's stores in Southern Maryland that are going back to Shoppers fit this profile. My observations of what I have seen in carts mirrors your thoughts. People are heavy on store brand as well as lower priced national brands. For instance, the big bagged sugar cereals instead of buying a box of Kellogg's. Shoppers also sells some brands that you don't always see in a traditional grocery. They have Armor meats and pepperoni which is about 20-25 percent less than Hormel. They also sell Sun of Italy products from Baltimore which have some good Italian products at a good price. All of this probably leads to lower total sales numbers even though volume is average to above average. Shoppers in its current form is not going to make it in an affluent area. However they seem well suited for the locations they currently operate.
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Re: Crucial times for Shoppers

Post by BillyGr »

storewanderer wrote: February 18th, 2023, 12:21 am This has been my general observation of the Shoppers locations I have been into (which isn't many). They did not strike me as struggling stores, just not overly successful stores (they were no Giant, and probably doing less volume than Safeway). They were clean stores that were generally well stocked and had perimeters that were orderly and the products available looked to be acceptable quality at what I'd call fair prices. They always had traffic and seemed adequately staffed. I suspect sales mix is an issue at Shoppers that causes the volumes to look low- customer base is buying more lower cost product so sales numbers aren't as strong even on high traffic. I think Farm Fresh in Richmond had a similar problem.
But, is it really a problem? Lower total sales may not be an issue if the items are lower priced (and thus cost less to the store to begin with). They may still get a similar dollar amount of profit, if they are getting (let's say) a 50 cent profit per box or bag of cereal, no matter if that is 50 cents out of a $4 box or 50 cents out of a $2.50 one.
mjhale wrote: February 18th, 2023, 9:46 am Shoppers in its current form is not going to make it in an affluent area. However they seem well suited for the locations they currently operate.
Just depends on who the people are that are affluent. They simply need an area with lots of people like Sam (the founder of Walmart), who was known, even once he had a great deal of money, to still not spend more than was needed on things, like having an older vehicle or a beaten up looking desk. A bunch of people like him would appreciate the lower priced items no matter how much money they have, or that they could afford to spend far more somewhere else :)
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Re: Crucial times for Shoppers

Post by BatteryMill »

rwsandiego wrote: February 17th, 2023, 3:25 pm
BatteryMill wrote: February 16th, 2023, 3:02 pm
storewanderer wrote: February 15th, 2023, 9:47 pm I wonder how the interiors of these new Shoppers Stores will look. If UNFI is actually spending significant money on the interiors it will be very interesting... would almost imply they want to keep them long term...
The Shoppers stores reopened thus far have kept the previous Fresh & Healthy 3.0 decor from their original stints (yellow walls with multi-colored departments). However, a new decor package has been revealed which is quite similar to the previous, but with more photographic elements and a gray motif. It has been implemented at the two Forestville, MD locations.
Do you have any photos? I'd love to see the decor packages.
I do not have any originating from me, though a number of photos are available when you search "shoppers silver hill" on Google.
mjhale wrote: February 18th, 2023, 9:46 am Shoppers current batch of stores seems to serve a solidly blue collar type of clientele. Add to that in certain areas immigrants from other places that are not shopping at ethnic grocers for whatever reason. The Shoppers stores I have been to seem to have larger produce sections with a greater variety of ethic type produce than a traditional grocer, though not as much variety as an ethnic store. I would be curious to know how the McKay's stores in Southern Maryland that are going back to Shoppers fit this profile. My observations of what I have seen in carts mirrors your thoughts. People are heavy on store brand as well as lower priced national brands. For instance, the big bagged sugar cereals instead of buying a box of Kellogg's. Shoppers also sells some brands that you don't always see in a traditional grocery. They have Armor meats and pepperoni which is about 20-25 percent less than Hormel. They also sell Sun of Italy products from Baltimore which have some good Italian products at a good price. All of this probably leads to lower total sales numbers even though volume is average to above average. Shoppers in its current form is not going to make it in an affluent area. However they seem well suited for the locations they currently operate.
Not a bad plan for sure. I wonder where their expansion horizons may lead them to next... I've always imagined them as a good full-size competitor to Aldi and Lidl, especially with a lack of Walmart Neighborhood Markets, WinCos, etc. in the area.
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Re: Crucial times for Shoppers

Post by storewanderer »

I think Shoppers basically functions in the space that Wal Mart Neighborhood Market would function in ideally (if it had a better perimeter). It will be interesting if they expand further or if this small episode of store additions is a bit of a fluke.

Still it no longer appears as if Shoppers is "for sale."

I also wonder if the 2 pure new stores from McKays will be union or not.
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Re: Crucial times for Shoppers

Post by BatteryMill »

storewanderer wrote: February 18th, 2023, 10:38 pm I think Shoppers basically functions in the space that Wal Mart Neighborhood Market would function in ideally (if it had a better perimeter). It will be interesting if they expand further or if this small episode of store additions is a bit of a fluke.

Still it no longer appears as if Shoppers is "for sale."

I also wonder if the 2 pure new stores from McKays will be union or not.
I wonder how the perimeter can be improved at Shoppers. I will, however note that all this recent investment happens to be taking place mostly on the Maryland side of operations. I could think of some pockets in VA Shoppers could set up shop.
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Re: Crucial times for Shoppers

Post by marketreportblog »

storewanderer wrote: February 12th, 2023, 7:56 pm
It is some of these other buyers like the Key Food and now this McKay's that I think there is more to the story. It is very odd Shoppers is gaining 2 stores now that were never even Shoppers in the first place... that is a very odd turn of events.
Which stores went to Key Food? Are you thinking of the ones that went to Compare Foods? I didn't think Key Food was in this mid-Atlantic area, but my suspicion is that they will be shortly by converting Compare Foods stores specifically in the Carolinas. Look at what they've done with the 30 or so Bravos they've converted in Florida.

Edit: just adding that Key Food is supplied by UNFI but it actually doesn't look like Compare Foods is/was. The Colmar Manor store at least uses Avenue A, which is their own brand and comes from C&S. Not sure if there was also some other deal worked out.
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Re: Crucial times for Shoppers

Post by storewanderer »

marketreportblog wrote: February 26th, 2023, 7:34 am
storewanderer wrote: February 12th, 2023, 7:56 pm
It is some of these other buyers like the Key Food and now this McKay's that I think there is more to the story. It is very odd Shoppers is gaining 2 stores now that were never even Shoppers in the first place... that is a very odd turn of events.
Which stores went to Key Food? Are you thinking of the ones that went to Compare Foods? I didn't think Key Food was in this mid-Atlantic area, but my suspicion is that they will be shortly by converting Compare Foods stores specifically in the Carolinas. Look at what they've done with the 30 or so Bravos they've converted in Florida.

Edit: just adding that Key Food is supplied by UNFI but it actually doesn't look like Compare Foods is/was. The Colmar Manor store at least uses Avenue A, which is their own brand and comes from C&S. Not sure if there was also some other deal worked out.
Yes, I was referring to those Compare things.

Compare Foods seemed to have multiple suppliers depending on the location.
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Re: Crucial times for Shoppers

Post by buckguy »

I went to the one in College Park over the weekend. It was fairly busy but an odd store.

The shelf pricing was higher than Giant, although some of the specials were better. The selection was odd--only one brand of pasta, except for a few house brand items and less in the way of Hispanic food than I would have expected (that side of College Park has a lot of Hispanic families). The store looked like it was expanded into an adjacent space. There were spots with seemingly random items that probably was used for something more organized. The decor was simple and the whole place seemed a bit neglected.

It's in a busy shopping center with a Home Depot and some small stores. It probably does well enough because it has no immediate competition--the nearest store is a Mom's Organics, less than a mile away and a Lidl that's may be a mile away toward U of Maryland. This plaza is probably 15-20 years old, but the area is a bit neglected---old 50s GI Bill houses in varying condition.
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Re: Crucial times for Shoppers

Post by storewanderer »

buckguy wrote: April 11th, 2023, 7:48 pm I went to the one in College Park over the weekend. It was fairly busy but an odd store.

The shelf pricing was higher than Giant, although some of the specials were better. The selection was odd--only one brand of pasta, except for a few house brand items and less in the way of Hispanic food than I would have expected (that side of College Park has a lot of Hispanic families). The store looked like it was expanded into an adjacent space. There were spots with seemingly random items that probably was used for something more organized. The decor was simple and the whole place seemed a bit neglected.

It's in a busy shopping center with a Home Depot and some small stores. It probably does well enough because it has no immediate competition--the nearest store is a Mom's Organics, less than a mile away and a Lidl that's may be a mile away toward U of Maryland. This plaza is probably 15-20 years old, but the area is a bit neglected---old 50s GI Bill houses in varying condition.
Doing something about the flooring that is oddly colored and the hideous orange edges in sections of that particular store would go a long ways. How about fresh departments? Anything interesting there (good/bad)? Or just fresh departments that were so "okay" they leave no impression either way good or bad.

Kind of sounds like center store merchandising needs some help. Are they appearing to heavily push private label?

These UNFI-supplied independents out in CA are terrible on center store and it appears UNFI gives them almost no promotional effort and awful pricing all around. They are a bit better in OR/WA for some reason but seem to be getting worse and worse with time, and more and more independents leaving UNFI for C&S or URM up there.
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