Acquisition and Integration of Haggen into Albertsons

[pseudo3d]

I could be wrong, but I actually CAN see them keeping this division.

I tend to agree with you. All the back end offices and distribution will be merged into Albertson's at some point but they will keep a small operations management focused on operating the Haggen branded stores which will have much higher margins than Albertsons/Safeway branded stores.

For what it's worth, at least the former Safeway divisions DO operate districts (with a small staff), not unlike what Kroger does. No reason to have an entire division for a tiny fleet.

- I wonder if Albertsons will try to position this as their answer to Main & Vine. Is that even a good idea? After all, Main & Vine never was driven out of SoCal on a rail.

I'm not sure I get the analogy. Main & Vine is a one store test that's barely a month old. Haggen's failure in Southern California was under totally different circumstances. There's no indication that Albertson's wants to position the legacy Haggen stores any different than they are now. If anything I think they want to avoid changing the format on these remaining stores and risk alienating shoppers that have long been loyal to the Haggen name.[/quote]

Well, it's no stranger to how Albertsons operates. Kroger's family of stores were bought and procured as market leaders. King Soopers, Fry's, JayC...all these are top-notch brands (at least in terms of market share), while Albertsons operates a similar group of names, often long-running ones in their markets, though due to mismanagement have fallen behind in market share and reputation. ACME, Randalls, Shaw's...and Haggen is no different. This is the chain that thoroughly embarrassed itself in a high-profile divestment disaster, while Main & Vine is dazzling the industry with a new fresh foods concept. It's a difference in night and day.

Of course, Haggen isn't competing directly with Main & Vine, but if Kroger builds more stores of that pedigree...

[storewanderer]

They almost have to keep operating Haggen as a separate operation. Those stores are just too different. The perimeters are too different, too large, and in general the mix and heavy push on items from smaller, local producers is what made the old Haggen operation "tick." The labor mix/need is different than a standard Safeway/Albertsons location. Even the exteriors of the stores are too different.

If they were to just generic and turn those into a normal Albertsons or Safeway, business would fall like a rock unless they ran some major price decreases and the stores would be sad and depressing due to the downsized/downscaled perimeters.

The best cross would be between Haggen and Market Street. I think Market Street could learn a thing or two about quality control and product freshness from the original Haggen, based on my one experience with Market Street. Haggen needs to drive more sales to its center store areas and the stores need some capital, they are looking a bit tired and dated now.

[pseudo3d]

They almost have to keep operating Haggen as a separate operation. Those stores are just too different. The perimeters are too different, too large, and in general the mix and heavy push on items from smaller, local producers is what made the old Haggen operation "tick." The labor mix/need is different than a standard Safeway/Albertsons location. Even the exteriors of the stores are too different.

If they were to just generic and turn those into a normal Albertsons or Safeway, business would fall like a rock unless they ran some major price decreases and the stores would be sad and depressing due to the downsized/downscaled perimeters.

The best cross would be between Haggen and Market Street. I think Market Street could learn a thing or two about quality control and product freshness from the original Haggen, based on my one experience with Market Street. Haggen needs to drive more sales to its center store areas and the stores need some capital, they are looking a bit tired and dated now.

The stores COULD turn into a Safeway or Albertsons without TOO much changes and customers would still come (even if prices WERE lowered), but there would be a lot of grousing and unhappiness, with no real reason to specifically pick that store. I say this after what happened to Hiller's Market, which was somewhat of a Haggen-like store, with good quality on perimeters and a focus on local goods (and of course being pricier), but ultimately was bought and converted by Kroger, which had some mixed reactions to put it nicely.

In any case, someone clearly sees the value of the Haggen name operating in some form, possibly as an "upscale" brand of the stores in the Seattle division (which I'm sure the Haggen stores will merge into).

[marshd1000]

Another article of interest:

http://www.thenewstribune.com/news/busi ... 68762.html

[marshd1000]

It's official, approval has been given for Albertsons to buy Haggen:

http://www.bellinghamherald.com/news/lo ... 85842.html

http://www.seattletimes.com/business/re ... lbertsons/

http://www.oregonlive.com/window-shop/i ... _sale.html

[SamSpade]

Some good news from the last day of business at the Port Angeles Haggen store:
Haggen closes with a customer's final act of kindness

[pseudo3d]

Haven't heard a peep since Haggen got bought by Albertsons, other than the store closures happening. Haggen isn't "canonized" into Albertsons at all, and there aren't a lot of details of "reverting" stores to Albertsons, either.

[klkla]

Haggen isn't "canonized" into Albertsons at all

I didn't realize that Albertson's had the authority to make Haggen a saint

[pseudo3d]

Haggen isn't "canonized" into Albertsons at all

I didn't realize that Albertson's had the authority to make Haggen a saint

By Albertsons "canon", I mean the name taking place co-existing with the other names up on the website: Albertsons, Safeway, United Supermarkets, Lucky, Tom Thumb, Jewel-Osco...about 18 in all (including United Express).

[marshd1000]

I am thinking that the sale has not closed yet. I suspect that Albertsons is waiting until the properties with the closed stores have been sold. Perhaps Albertsons wants nothing to do with shedding those properties?

Speaking of Haggen, I heard the first Haggen radio ad that I've heard in years! I was listening to KWPZ (Praise 106.5). They were advertising the sustainability of their seafood. I am just wondering why they are even advertising now? Why didn't they do it in the midst of their ill fated expansion? It makes me scratch my bald head!