Raleys Douglas Blvd Roseville

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Raleys Douglas Blvd Roseville

Post by storewanderer »

Appears the space is being marketed for lease.
https://www.bizjournals.com/sacramento/ ... lease.html

It will be interesting to see what happens. I am not sure how marketable this space is. Especially now. Perhaps the store will stay.

There used to be an Albertsons near this store, a real dump, which closed a bit before LLC happened. It is across the street from a Sprouts (former The Fresh Market). My observation is the Sprouts is not doing very well in that location.

A very nice Safeway is down the road further, along with a Wal Mart Neighborhood Market (former Albertsons/Ralphs/Grocery Outlet) which appears to not be very busy but appears to do enough business to survive.
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Re: Raleys Douglas Blvd Roseville

Post by lake »

This store is like a cockroach, I’m sure it’ll stay at Raley’s. Raley’s is pretty notorious for hard balling lease negotiations (Woodland Bel Air comes to mind as well as plenty of Bay Area stores).

This store though is interesting. Lately is seems to be quite busy but all small purchases. Traffic definitely dropped when Walmart remodeled, Target added grocery, and Fresh Market (now Sprouts) opened across the street. However, the store has run off Fresh Market and Target has removed most perishable goods from that store. It seems very common for customers to purchase dry goods at Target then go to Raley’s for produce and meat. It’s relatively busy once again lately.

It’s location is great but is surrounded by just about every competitor in the Sacramento market (except SaveMart and Nugget). Within a 2ish mile radius you have Target (same center), 2 Walmart’s, Sprouts, 2 Safeways, Smart and Final, Grocery Outlet, Whole Foods, Trader Joe’s, 99 Cent Store, and some smaller specialties. You also have a busy Bel Air not far away.

The store could definitely use a remodel to stay competitive in the market and I think that’ll come if they choose to stay at the location long term. Store has the early 2000s interior right now with some minor changes that were made when Target added grocery.

Actually to add, this is what I would consider a Raley's legacy location. The current building was built in the late 80s or early 90s but before that the store was a couple blocks down on Harding and Douglas. That building now houses an ACE Hardware and Dollar Tree.
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Re: Raleys Douglas Blvd Roseville

Post by storewanderer »

Isn't that Target a former Gemco? So Raleys basically got this store there after Gemco closed...

Raleys is running aggressive pricing lately on meat and produce, week after week. Raleys has picked up so much of my shopping dollar in the past six months with better promotions, and I am never disappointed with the quality and rarely disappointed the shopping experience.
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Re: Raleys Douglas Blvd Roseville

Post by lake »

storewanderer wrote: May 6th, 2020, 11:55 pm Isn't that Target a former Gemco? So Raleys basically got this store there after Gemco closed...
Nope the store built as a Target sometime in 88 or 89. So after Gemco folded but when Target acquired many of the old Sacramento stores. This Raley's store was built by Raley's and is their superstore model from the 80s. I believe the original anchors for the center were Target, Raley's, Big 5, Sears (who moved to the Galleria less than 10 years later), and maybe a local pet store.
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Re: Raleys Douglas Blvd Roseville

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lake wrote: May 7th, 2020, 8:54 am
storewanderer wrote: May 6th, 2020, 11:55 pm Isn't that Target a former Gemco? So Raleys basically got this store there after Gemco closed...
Nope the store built as a Target sometime in 88 or 89. So after Gemco folded but when Target acquired many of the old Sacramento stores. This Raley's store was built by Raley's and is their superstore model from the 80s. I believe the original anchors for the center were Target, Raley's, Big 5, Sears (who moved to the Galleria less than 10 years later), and maybe a local pet store.
So that is why that Target was like a Gemco conversion, since it was of the same era.

I think Raleys is the right grocer for that location. I am not really sure how an ethnic (Asian) format or a WinCo type format would do there. It doesn't seem like the right spot for it. WinCo's Roseville Store seems to be very overcrowded though, but I question how many of its customers are local and how many are coming from outlying areas (Auburn, etc.).
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Re: Raleys Douglas Blvd Roseville

Post by retailfanmitchell019 »

storewanderer wrote: May 6th, 2020, 11:55 pm Isn't that Target a former Gemco? So Raleys basically got this store there after Gemco closed...

Raleys is running aggressive pricing lately on meat and produce, week after week. Raleys has picked up so much of my shopping dollar in the past six months with better promotions, and I am never disappointed with the quality and rarely disappointed the shopping experience.
Has Raley's ever considered expanding to SoCal? I think they should've acquired the Albertsons/Vons in SoCal up for divestiture instead of Haggen...
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Re: Raleys Douglas Blvd Roseville

Post by lake »

retailfanmitchell019 wrote: May 7th, 2020, 6:49 pm
storewanderer wrote: May 6th, 2020, 11:55 pm Isn't that Target a former Gemco? So Raleys basically got this store there after Gemco closed...

Raleys is running aggressive pricing lately on meat and produce, week after week. Raleys has picked up so much of my shopping dollar in the past six months with better promotions, and I am never disappointed with the quality and rarely disappointed the shopping experience.
Has Raley's ever considered expanding to SoCal? I think they should've acquired the Albertsons/Vons in SoCal up for divestiture instead of Haggen...
I'm sure they've considered it, but I doubt they'd ever do it. They've had plenty of fun with New Mexico and Las Vegas and failed completely in Las Vegas, and didn't see a viable enough future in New Mexico. They claim they're eyeing the Pacific Northwest, but I don't think the real estate exists to build competitive pricing. Supplying out of California would be a death sentence but without a sizable store count, they wouldn't have a choice.

I would think they're quite happy continuing to hold the dominant spot in Sacramento, be number one or two in Reno, and having a growing presence in the Bay Area. Eventually, they could be an acquisition target as they've become less family operated lately, but other than Kroger or Amazon, I don't see who would buy them.

I do think they have significantly improved under their new leadership. They brought in a bunch of veterans from around the industry such as the former VP of Kohls. They still have quirks, but the stores are better priced, better stocked, and they are being a bit more aggressive in closing legacy stores and opening new ones.
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Re: Raleys Douglas Blvd Roseville

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lake wrote: May 7th, 2020, 7:09 pm I'm sure they've considered it, but I doubt they'd ever do it. They've had plenty of fun with New Mexico and Las Vegas and failed completely in Las Vegas, and didn't see a viable enough future in New Mexico. They claim they're eyeing the Pacific Northwest, but I don't think the real estate exists to build competitive pricing. Supplying out of California would be a death sentence but without a sizable store count, they wouldn't have a choice.

I would think they're quite happy continuing to hold the dominant spot in Sacramento, be number one or two in Reno, and having a growing presence in the Bay Area. Eventually, they could be an acquisition target as they've become less family operated lately, but other than Kroger or Amazon, I don't see who would buy them.

I do think they have significantly improved under their new leadership. They brought in a bunch of veterans from around the industry such as the former VP of Kohls. They still have quirks, but the stores are better priced, better stocked, and they are being a bit more aggressive in closing legacy stores and opening new ones.
SoCal probably would not have been a great move for Raleys own format and absolutely not for Food Source (bad format that needs to be put to rest). A merger with Stater Bros., maybe... combine the buying but otherwise keep the two formats distinct/separate. But I think the cultures of Raleys and Stater are rather different. In the end both are above average operators. I think Stater is actually better at generating sales volume. Both seem to staff their stores properly unlike the large chains who are way too tight on labor.

Raleys probably should have tried to expand to the Central Coast (San Luis Obispo, Paso Robles, Atascadero, etc.). I think they could do well there.

It doesn't seem like they are growing in the bay area, it seems like their net store count there is down quite a bit the past 5-10 years.

Raleys could be a good way for an operator like Ahold to gain a west coast presence. I hope they won't sell out to Kroger.

I would also add here Raleys has built up a good private label program since dumping Sunny Select. They have a good mix, attractive packaging, and the quality of the items seems to be reliable. I know they source from TopCo but a number of their items do not seem to be from the same supplier as the TopCo stuff at Save Mart (Sunny Select, Market Essentials, "ME and my Life" or whatever other private label of the week Save Mart is using this week).
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Re: Raleys Douglas Blvd Roseville

Post by lake »

storewanderer wrote: May 7th, 2020, 7:28 pm
Raleys probably should have tried to expand to the Central Coast (San Luis Obispo, Paso Robles, Atascadero, etc.). I think they could do well there.

It doesn't seem like they are growing in the bay area, it seems like their net store count there is down quite a bit the past 5-10 years.

I would also add here Raleys has built up a good private label program since dumping Sunny Select. They have a good mix, attractive packaging, and the quality of the items seems to be reliable. I know they source from TopCo but a number of their items do not seem to be from the same supplier as the TopCo stuff at Save Mart (Sunny Select, Market Essentials, "ME and my Life" or whatever other private label of the week Save Mart is using this week).
I always thought Raley's should have made a run at Scolari's real estate down there. But nonetheless, they were in a different position then.

I also agree that Raley's has built a great private label. Usually better priced and sometimes better quality than some name brands. I think this has played a part in their stores getting considerably busier over the last 2-3 years.

I still don't think this store is going anywhere. You're right that the location can't really function as another anchor. The store does moderate business and is far from some of the least busy stores I have been to. It is too small for Winco and I don't even think Winco would be successful here with Walmart literally in their backyard. Everyone else is already there and the direct area isn't going to support a Nugget. This plays into Raley's favor and I'm sure that since they're coming to the end of the lease, they understand this. This store is surrounded by major employers (Kaiser employs 4000 across the street alone) and I think a remodel to add more perimeter goods with a focus on grab and go would do it wonders.
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Re: Raleys Douglas Blvd Roseville

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lake wrote: May 8th, 2020, 11:35 am
storewanderer wrote: May 7th, 2020, 7:28 pm
Raleys probably should have tried to expand to the Central Coast (San Luis Obispo, Paso Robles, Atascadero, etc.). I think they could do well there.

It doesn't seem like they are growing in the bay area, it seems like their net store count there is down quite a bit the past 5-10 years.

I would also add here Raleys has built up a good private label program since dumping Sunny Select. They have a good mix, attractive packaging, and the quality of the items seems to be reliable. I know they source from TopCo but a number of their items do not seem to be from the same supplier as the TopCo stuff at Save Mart (Sunny Select, Market Essentials, "ME and my Life" or whatever other private label of the week Save Mart is using this week).
I always thought Raley's should have made a run at Scolari's real estate down there. But nonetheless, they were in a different position then.

I also agree that Raley's has built a great private label. Usually better priced and sometimes better quality than some name brands. I think this has played a part in their stores getting considerably busier over the last 2-3 years.

I still don't think this store is going anywhere. You're right that the location can't really function as another anchor. The store does moderate business and is far from some of the least busy stores I have been to. It is too small for Winco and I don't even think Winco would be successful here with Walmart literally in their backyard. Everyone else is already there and the direct area isn't going to support a Nugget. This plays into Raley's favor and I'm sure that since they're coming to the end of the lease, they understand this. This store is surrounded by major employers (Kaiser employs 4000 across the street alone) and I think a remodel to add more perimeter goods with a focus on grab and go would do it wonders.
The potential elephant in the room in Roseville is Amazon. We know they are taking spaces from conventional chains in SoCal as leases expire. Could this be a potential angle with this location on the landlord's part? Right next to a Target... how strategic to put an Amazon store there.

It is interesting what came of those 4 Scolaris in Central CA. It seems like they are viable grocery locations, despite some turnover. And who knows if the turnover will continue given the tenant of two of the locations currently.

The Pismo Beach one was remodeled into a pretty nice independent.

San Luis Obispo initially taken by Albertsons LLC (their only new stores in SoCal) then divested to Haggen and ended up as Smart & Final (surprised Albertsons did not get it back).

Paso Robles which was Scolaris newest store taken by Smart & Final.

Santa Barbara taken part by The Fresh Market part by Petsmart (I forget who took it now, Trader Joes maybe).
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