The present and future of Randalls

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Re: The present and future of Randalls

Post by pseudo3d »

When a Randalls closed in 2021 in Austin, Randalls still insisted that they were interesting in the Austin, and there was some evidence that they wanted to add a new store at the base of a residential tower near downtown Austin; however, the grocery component was scrapped after neighborhood resistance.

Can't say the same for the Houston stores...getting rid of the card is too little, too late, and with Albertsons not interested in any new stores in the area, it will continue to deteriorate.
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Re: The present and future of Randalls

Post by storewanderer »

Does El Rancho sell Signature items/participate in the loyalty program for fuel points/J4U or anything in Houston? Or does it come off as completely unrelated to Albertsons (like the oddly placed Kansas unit does)?
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Re: The present and future of Randalls

Post by pseudo3d »

storewanderer wrote: June 7th, 2022, 6:15 pm Does El Rancho sell Signature items/participate in the loyalty program for fuel points/J4U or anything in Houston? Or does it come off as completely unrelated to Albertsons (like the oddly placed Kansas unit does)?
I believe that El Rancho does now sell Signature items but not participate in other promotions...but again, they only have partial ownership. If the two companies divorced I could see Albertsons retaking some of the Houston locations with El Rancho keeping pre-ABS stores.

For a brief time, the 34th Street Randalls-turned-El Rancho kept the fuel center (operated by ABS) but it closed after a year or so.
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Re: The present and future of Randalls

Post by Greggo »

Another Randalls is going bye-bye. This time it’s the one at Research and Braker in Austin. The store-closing sale started this week and, according to employees, will wrap up by the middle of February.

This store opened in 1996 and was a Randalls original build, unlike many of their other Austin stores, which were inherited from AppleTree (formerly Safeway). It’s just shy of 60,000 square feet.

The store just got a complete Colorful Lifestyle remodel not that long ago, including new wall art, paint, tile and refrigeration upgrades. This happened at the same time the HEB across the street was being significantly enlarged and completely remodeled, inside and out.

The dry cleaner inside Randalls has already closed. The pharmacy closes next week and prescriptions are being sent to the nearby Randalls at Spicewood Springs and Mesa. The Starbucks employees say the Starbucks will remain open because it is owned by Starbucks and not Randalls. (There’s one interior Starbucks entrance and one exterior entrance. All the seating is inside Randalls though, so not sure how that is going to work. Takeout only?)

Word is Hobby Lobby is taking over this space, relocating from Research and North Lamar. Plans filed with the city call for the grease trap to be removed and for the pharmacy drive-through window to be covered. The existing lane used for the drive-through will be blocked at both ends with bollards. Hobby Lobby previously took over a similar-sized Randalls at South Mopac and William Cannon.

Have to wonder how much longer Randalls can hang on. Will the Kroger acquisition mark the end of the line?
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Re: The present and future of Randalls

Post by storewanderer »

This closing store in Austin- first it got a repaint of the old Lifestyle interior which didn't look to entail much more than a very low effort repaint (often seen at Vons)- then more recently it actually got the Colorful Lifestyle package and the various improvements Greggo described- a full remodel- and looks fantastic.

Why would they do a full remodel on a store that is about to close/lose its lease?

Austin isn't quite the hot spot it once was with what felt like sky is the limit growth (it is still a very strong place), real estate values are falling in recent months (whether or not this continues is up for debate), so it may not be too surprising to see some pull back.
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Re: The present and future of Randalls

Post by ClownLoach »

storewanderer wrote: January 6th, 2024, 1:58 am This closing store in Austin- first it got a repaint of the old Lifestyle interior which didn't look to entail much more than a very low effort repaint (often seen at Vons)- then more recently it actually got the Colorful Lifestyle package and the various improvements Greggo described- a full remodel- and looks fantastic.

Why would they do a full remodel on a store that is about to close/lose its lease?
Very likely this wasn't their decision. Landlord might have been concerned from rumors like those all over these boards that they might pull the plug on the Randall's division so they decided they'd rather have a stable tenant in Hobby Lobby. The fact that the store has just started closing but the replacement plans are already locked down including the renovation plans indicates that they probably had an agreement between landlord and Hobby Lobby at least 18-24 months ago. They probably did the remodel to try to show the landlord they're committed, but it was not enough to persuade the landlord and they used their boot rights. Hobby Lobby is stable and they love triple net leases where they take care of everything.
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Re: The present and future of Randalls

Post by storewanderer »

ClownLoach wrote: January 7th, 2024, 3:32 pm

Very likely this wasn't their decision. Landlord might have been concerned from rumors like those all over these boards that they might pull the plug on the Randall's division so they decided they'd rather have a stable tenant in Hobby Lobby. The fact that the store has just started closing but the replacement plans are already locked down including the renovation plans indicates that they probably had an agreement between landlord and Hobby Lobby at least 18-24 months ago. They probably did the remodel to try to show the landlord they're committed, but it was not enough to persuade the landlord and they used their boot rights. Hobby Lobby is stable and they love triple net leases where they take care of everything.
They seem to have a pattern of closing recently remodeled stores but typically the remodels are low budget type remodels.

This seems to be a more in depth remodel to the formal Colorful Lifestyle interior. The low budget one was 5 years ago when they repainted the lifestyle walls.

Or things just got worse and worse for them trying to compete against HEB. HEB is a very tough competitor, I can see how they (and anyone else) have significant problems competing against HEB. HEB Dallas Expansion will not be pretty for competitors.

I wonder if Starbucks will have a pass through to Hobby Lobby. Maybe only if Starbucks shuts off their scanners.
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Re: The present and future of Randalls

Post by ClownLoach »

storewanderer wrote: January 7th, 2024, 6:28 pm
ClownLoach wrote: January 7th, 2024, 3:32 pm

Very likely this wasn't their decision. Landlord might have been concerned from rumors like those all over these boards that they might pull the plug on the Randall's division so they decided they'd rather have a stable tenant in Hobby Lobby. The fact that the store has just started closing but the replacement plans are already locked down including the renovation plans indicates that they probably had an agreement between landlord and Hobby Lobby at least 18-24 months ago. They probably did the remodel to try to show the landlord they're committed, but it was not enough to persuade the landlord and they used their boot rights. Hobby Lobby is stable and they love triple net leases where they take care of everything.
They seem to have a pattern of closing recently remodeled stores but typically the remodels are low budget type remodels.

This seems to be a more in depth remodel to the formal Colorful Lifestyle interior. The low budget one was 5 years ago when they repainted the lifestyle walls.

Or things just got worse and worse for them trying to compete against HEB. HEB is a very tough competitor, I can see how they (and anyone else) have significant problems competing against HEB. HEB Dallas Expansion will not be pretty for competitors.

I wonder if Starbucks will have a pass through to Hobby Lobby. Maybe only if Starbucks shuts off their scanners.
It just makes too much sense that they tried to keep the store with the full remodel expense, but the landlord had already made up their mind. It takes time for things like blueprints and construction plans to be put together, no way this Hobby Lobby conversion wasn't a done deal well over a year ago. If you were a landlord in that market where there is a history of store closures, and you were approached by a stable tenant like Hobby Lobby, you would be hard pressed not to take the deal and boot Randall's. Nobody wants to get stuck with a dead store, and if the landlord didn't have the money to make their loan payments etc. then that is even more likely. OR it's an owned store and marginally profitable, and they were approached by Hobby Lobby with a sublease offer that was good enough to warrant closing down.

Hobby Lobby isn't going to have anything to do with Starbucks and will block that door immediately with something like a new Christmas tree display in February...
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Re: The present and future of Randalls

Post by storewanderer »

ClownLoach wrote: January 9th, 2024, 6:37 pm
storewanderer wrote: January 7th, 2024, 6:28 pm
ClownLoach wrote: January 7th, 2024, 3:32 pm

Very likely this wasn't their decision. Landlord might have been concerned from rumors like those all over these boards that they might pull the plug on the Randall's division so they decided they'd rather have a stable tenant in Hobby Lobby. The fact that the store has just started closing but the replacement plans are already locked down including the renovation plans indicates that they probably had an agreement between landlord and Hobby Lobby at least 18-24 months ago. They probably did the remodel to try to show the landlord they're committed, but it was not enough to persuade the landlord and they used their boot rights. Hobby Lobby is stable and they love triple net leases where they take care of everything.
They seem to have a pattern of closing recently remodeled stores but typically the remodels are low budget type remodels.

This seems to be a more in depth remodel to the formal Colorful Lifestyle interior. The low budget one was 5 years ago when they repainted the lifestyle walls.

Or things just got worse and worse for them trying to compete against HEB. HEB is a very tough competitor, I can see how they (and anyone else) have significant problems competing against HEB. HEB Dallas Expansion will not be pretty for competitors.

I wonder if Starbucks will have a pass through to Hobby Lobby. Maybe only if Starbucks shuts off their scanners.
It just makes too much sense that they tried to keep the store with the full remodel expense, but the landlord had already made up their mind. It takes time for things like blueprints and construction plans to be put together, no way this Hobby Lobby conversion wasn't a done deal well over a year ago. If you were a landlord in that market where there is a history of store closures, and you were approached by a stable tenant like Hobby Lobby, you would be hard pressed not to take the deal and boot Randall's. Nobody wants to get stuck with a dead store, and if the landlord didn't have the money to make their loan payments etc. then that is even more likely. OR it's an owned store and marginally profitable, and they were approached by Hobby Lobby with a sublease offer that was good enough to warrant closing down.

Hobby Lobby isn't going to have anything to do with Starbucks and will block that door immediately with something like a new Christmas tree display in February...
I'm sure the new Christmas Trees will be 33% off right from the start too.

I'm surprised Hobby Lobby is willing to pay more rent than a grocery store (or are they).
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Re: The present and future of Randalls

Post by Romr123 »

ClownLoach wrote: January 9th, 2024, 6:37 pm
storewanderer wrote: January 7th, 2024, 6:28 pm
ClownLoach wrote: January 7th, 2024, 3:32 pm

Very likely this wasn't their decision. Landlord might have been concerned from rumors like those all over these boards that they might pull the plug on the Randall's division so they decided they'd rather have a stable tenant in Hobby Lobby. The fact that the store has just started closing but the replacement plans are already locked down including the renovation plans indicates that they probably had an agreement between landlord and Hobby Lobby at least 18-24 months ago. They probably did the remodel to try to show the landlord they're committed, but it was not enough to persuade the landlord and they used their boot rights. Hobby Lobby is stable and they love triple net leases where they take care of everything.
I wonder if Starbucks will have a pass through to Hobby Lobby. Maybe only if Starbucks shuts off their scanners.
Hobby Lobby isn't going to have anything to do with Starbucks and will block that door immediately with something like a new Christmas tree display in February...
...or a creche
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