Raleys selling 2 Food Sources to Food 4 Less

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ninersdd
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Raleys selling 2 Food Sources to Food 4 Less

Post by ninersdd » June 25th, 2020, 5:22 pm

https://www.bizjournals.com/sacramento/ ... RFVBIn0%3D


One in Rio Linda and another on Bradshaw near Mather. Also no more Sacramento stores, just Hayward, Reno, and Stockton.
Last edited by ninersdd on June 25th, 2020, 11:52 pm, edited 1 time in total.

storewanderer
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Re: Raleys selling 2 Food Sources to Food 4 Less

Post by storewanderer » June 25th, 2020, 8:57 pm

Also the 4th store in that "division" is the Sak N Save in Reno that they bought from Scolaris. Food Source in all but name.

Will be interesting to see what happens to the others. Hayward is a pure Food Source (built as Food Source). Reno and Stockton are conversions of poorly performing Raleys Stores. Sak N Save has been a discount format store forever, I think it started as some kind of discount store (not a grocery store). Raleys has really killed business over at the Sak N Save, but it sure feels safer over there since Raleys took it over. Cleaner, fewer people loitering, and better behaved staff.

This is a format Raleys never understood or did well with. I have no clue why they have operated this format as long as they have- The stores built as Food Source, were clear efforts to open stores in locations where a standard format Raleys would not have worked. As far as the conversion stores go, I am not sure if it was a way to ride out some leases on poorly performing Raleys locations or what.

Raleys continues to source separate (lower quality) meat, produce, bakery, etc. for these Food Source Stores. Given the low store count I don't see how effective this is.

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Re: Raleys selling 2 Food Sources to Food 4 Less

Post by reymann » July 3rd, 2020, 12:33 pm

maybe save mart can scoop up the remaining food source stores and rebrand them as foodmaxx. save mart is a lot more successful in operating a price impact store than raleys.

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Re: Raleys selling 2 Food Sources to Food 4 Less

Post by storewanderer » July 3rd, 2020, 10:00 pm

Food Maxx has performed terrible in Sparks and Carson City. Horribly run stores, rarely more than 1 checkstand open (but they do have 5-6 self checkouts, which you can usually get to one of without a wait). Poorly stocked, almost no employees, and prices higher than Smiths (who is the nearest competitor to both of these Food Maxx Stores). The Sparks and Carson City Smiths have picked up a ton of volume since Save Mart converted these two stores to Food Maxx, It didn't help that the "conversion" involved the stores being closed for like 6 or 8 months (they sat empty for all but about five weeks). The US Bank inside the Sparks Food Maxx recently closed. Sparks Smiths still has its US Bank. Some of the prices at Food Maxx are higher than a full service Save Mart. I am surprised anyone shops them.

But I would agree in general the CA Food Maxx operations seem a lot more effective than they have been up here in NV and they do pretty high volumes. Save Mart cannot compete against Wal Mart, Smiths, and WinCo in an effective manner. But up here in NV the Food Maxx are pretty much like the Food Sources. Actually the Food Source locations have more staffing than Food Maxx, but the business level is similar.

Maybe Raleys will keep these last 4 Food Source/Sak N Save Stores.

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