In-depth TV coverage of the Kroger & Albertsons vs. FTC trial in Portland, Ore. (trial began 8/26/24)

[SamSpade]

I thought I'd link to some good clips from KGW-TV 8's "The Story," which is largely supplemented by a Bloomberg.com reporter that appears to be in the courtroom daily.

TEGNA, parent of KGW, started these in-depth evening newscasts about 5 years ago in several markets, with different names but similar presentation in each.
1. Protestors speak to the media before start of trial.

2. Breaking down Portland's Fred Meyer strike, opposition to the Kroger-Albertsons merger

3. Inside the court case against the Kroger-Albertsons merger

4. CEO of C&S Wholesale testifies in court, history of Piggly Wiggly in the Pacific Northwest

[SamSpade]

It is mentioned:
C&S Intends to re-banner 49 Safeway and 9 Albertsons to become QFC.
The remainder would retain their original names.

9 Albertsons -
Appears to be all Portland-Salem-Vancouver DMA stores as well as maybe the Bend store?

49 Safeway -
This seems to reflect a figure of the Portland-Salem-Vancouver DMA as well, but fringe stores like the Oregon Coast and Corvallis would retain their original branding. I'm pretty sure the 2 Bend Safeways are also included in this.

[babs]

It is mentioned:
C&S Intends to re-banner 49 Safeway and 9 Albertsons to become QFC.
The remainder would retain their original names.

9 Albertsons -
Appears to be all Portland-Salem-Vancouver DMA stores as well as maybe the Bend store?

49 Safeway -
This seems to reflect a figure of the Portland-Salem-Vancouver DMA as well, but fringe stores like the Oregon Coast and Corvallis would retain their original branding. I'm pretty sure the 2 Bend Safeways are also included in this.

The irony being that QFC's reputation in the Portland market isn't better than Haggens was at the time of that fiasco and perhaps even worse due to their higher prices. Rebranding to QFC isn't helping their cause. If they would be able to take the Safeway brand, most people wouldn't even know something had changed. In fact, from what I hear the Albertsons stores rebranded to Safeway in the Portland market have had their sales increase, which shows the power of that brand. Rebranding to QFC will likely have the opposite effect from Day 1.

[ClownLoach]

It is mentioned:
C&S Intends to re-banner 49 Safeway and 9 Albertsons to become QFC.
The remainder would retain their original names.

9 Albertsons -
Appears to be all Portland-Salem-Vancouver DMA stores as well as maybe the Bend store?

49 Safeway -
This seems to reflect a figure of the Portland-Salem-Vancouver DMA as well, but fringe stores like the Oregon Coast and Corvallis would retain their original branding. I'm pretty sure the 2 Bend Safeways are also included in this.

The irony being that QFC's reputation in the Portland market isn't better than Haggens was at the time of that fiasco and perhaps even worse due to their higher prices. Rebranding to QFC isn't helping their cause. If they would be able to take the Safeway brand, most people wouldn't even know something had changed. In fact, from what I hear the Albertsons stores rebranded to Safeway in the Portland market have had their sales increase, which shows the power of that brand. Rebranding to QFC will likely have the opposite effect from Day 1.

This is why I said the 22% decline is suspiciously low. The Haggen debacle in SoCal was supposedly drops of 70% or more, pretty much just leaving those "walking distance" non mobile customers and WIC customers who are assigned a store to shop. Knowing that Albertsons recognized changing their own sign to Safeway in the PNW delivered significant enough sales lifts to fund/accelerate the program means that they would likely reverse those improvements and take whatever drop-off the tainted QFC brand would bring.

Those ultra luxe Pavilions in SoCal have snooty customers who would not be caught dead in an "ordinary" store such as a Ralphs, Vons or Albertsons. Changing those signs and nothing else will also take a chainsaw to their sales. Those people pretend that the product isn't coming from the same warehouse. Even if they were perfectly operated with a different name and no other changes I would expect 40% or more drop in sales. This is also why I do suspect that C&S has a side deal with Gelsons already. The replacement of Gelsons leadership with Albertsons people is suspect. I am pretty sure C&S would gladly flip those stores to Gelsons immediately at a big profit, especially jewels like WeHo, La Jolla, and Newport Coast that bring in more revenue every 7 days than C&S would pay for the entire store. Or Bristol Farms could recover from their ailments after the new concept flameout and also pick up all those stores.

If you don't think that customer has such an attachment to that Pavilions name, go look at the reviews of the rebranded East Long Beach location that changed to Vons (originally was planned to change to Albertsons apparently). That store has not changed one little bit operationally, it just got a quick decor change to colorful lifestyle repaint and a concrete floor. The customers are convinced that now the meat probably comes from a garbage dumpster instead of the finest cattle farms, that they're reselling Walmart produce, and so on. It is pure comedy to see what people believe when the truth is they're just seeing all the long existing flaws of the store for the first time because they're looking due to the name change.

[SamSpade]

Today's coverage including discussion of the testimony from CEOs of Kroger and Albertsons. The FTC rested their case and this is the delivery from the companies.

[veteran+]

It is mentioned:
C&S Intends to re-banner 49 Safeway and 9 Albertsons to become QFC.
The remainder would retain their original names.

9 Albertsons -
Appears to be all Portland-Salem-Vancouver DMA stores as well as maybe the Bend store?

49 Safeway -
This seems to reflect a figure of the Portland-Salem-Vancouver DMA as well, but fringe stores like the Oregon Coast and Corvallis would retain their original branding. I'm pretty sure the 2 Bend Safeways are also included in this.

The irony being that QFC's reputation in the Portland market isn't better than Haggens was at the time of that fiasco and perhaps even worse due to their higher prices. Rebranding to QFC isn't helping their cause. If they would be able to take the Safeway brand, most people wouldn't even know something had changed. In fact, from what I hear the Albertsons stores rebranded to Safeway in the Portland market have had their sales increase, which shows the power of that brand. Rebranding to QFC will likely have the opposite effect from Day 1.

This is why I said the 22% decline is suspiciously low. The Haggen debacle in SoCal was supposedly drops of 70% or more, pretty much just leaving those "walking distance" non mobile customers and WIC customers who are assigned a store to shop. Knowing that Albertsons recognized changing their own sign to Safeway in the PNW delivered significant enough sales lifts to fund/accelerate the program means that they would likely reverse those improvements and take whatever drop-off the tainted QFC brand would bring.

Those ultra luxe Pavilions in SoCal have snooty customers who would not be caught dead in an "ordinary" store such as a Ralphs, Vons or Albertsons. Changing those signs and nothing else will also take a chainsaw to their sales. Those people pretend that the product isn't coming from the same warehouse. Even if they were perfectly operated with a different name and no other changes I would expect 40% or more drop in sales. This is also why I do suspect that C&S has a side deal with Gelsons already. The replacement of Gelsons leadership with Albertsons people is suspect. I am pretty sure C&S would gladly flip those stores to Gelsons immediately at a big profit, especially jewels like WeHo, La Jolla, and Newport Coast that bring in more revenue every 7 days than C&S would pay for the entire store. Or Bristol Farms could recover from their ailments after the new concept flameout and also pick up all those stores.

If you don't think that customer has such an attachment to that Pavilions name, go look at the reviews of the rebranded East Long Beach location that changed to Vons (originally was planned to change to Albertsons apparently). That store has not changed one little bit operationally, it just got a quick decor change to colorful lifestyle repaint and a concrete floor. The customers are convinced that now the meat probably comes from a garbage dumpster instead of the finest cattle farms, that they're reselling Walmart produce, and so on. It is pure comedy to see what people believe when the truth is they're just seeing all the long existing flaws of the store for the first time because they're looking due to the name change.

Well, I guess my friends and I are outliers, because we are not snooty.

[ClownLoach]

The irony being that QFC's reputation in the Portland market isn't better than Haggens was at the time of that fiasco and perhaps even worse due to their higher prices. Rebranding to QFC isn't helping their cause. If they would be able to take the Safeway brand, most people wouldn't even know something had changed. In fact, from what I hear the Albertsons stores rebranded to Safeway in the Portland market have had their sales increase, which shows the power of that brand. Rebranding to QFC will likely have the opposite effect from Day 1.

This is why I said the 22% decline is suspiciously low. The Haggen debacle in SoCal was supposedly drops of 70% or more, pretty much just leaving those "walking distance" non mobile customers and WIC customers who are assigned a store to shop. Knowing that Albertsons recognized changing their own sign to Safeway in the PNW delivered significant enough sales lifts to fund/accelerate the program means that they would likely reverse those improvements and take whatever drop-off the tainted QFC brand would bring.

Those ultra luxe Pavilions in SoCal have snooty customers who would not be caught dead in an "ordinary" store such as a Ralphs, Vons or Albertsons. Changing those signs and nothing else will also take a chainsaw to their sales. Those people pretend that the product isn't coming from the same warehouse. Even if they were perfectly operated with a different name and no other changes I would expect 40% or more drop in sales. This is also why I do suspect that C&S has a side deal with Gelsons already. The replacement of Gelsons leadership with Albertsons people is suspect. I am pretty sure C&S would gladly flip those stores to Gelsons immediately at a big profit, especially jewels like WeHo, La Jolla, and Newport Coast that bring in more revenue every 7 days than C&S would pay for the entire store. Or Bristol Farms could recover from their ailments after the new concept flameout and also pick up all those stores.

If you don't think that customer has such an attachment to that Pavilions name, go look at the reviews of the rebranded East Long Beach location that changed to Vons (originally was planned to change to Albertsons apparently). That store has not changed one little bit operationally, it just got a quick decor change to colorful lifestyle repaint and a concrete floor. The customers are convinced that now the meat probably comes from a garbage dumpster instead of the finest cattle farms, that they're reselling Walmart produce, and so on. It is pure comedy to see what people believe when the truth is they're just seeing all the long existing flaws of the store for the first time because they're looking due to the name change.

Well, I guess my friends and I are outliers, because we are not snooty.

That's why I said a 40% sales drop, not 100%. But you and I both know that if nothing whatsoever changed at that store but the sign became Albertsons instead of Pavilions the sales would go down.

[SamSpade]

PBS News Hour with Washington Post.
The "defense" from the chain grocers rested on Friday.