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Save Mart Sells (and leases back??) 6 San Jose Stores for $131 million
Posted: December 1st, 2020, 9:35 pm
by storewanderer
https://www.andnowuknow.com/buyside-new ... diep/71170
Not knowing which locations these are, seems like a pretty good value per store.
Probably using this money to continue remodels to the rest of their stores. Can remodel a lot of stores with $131 million.
Re: Save Mart Sells (and leases back??) 6 San Jose Stores for $131 million
Posted: December 2nd, 2020, 11:44 am
by retailfanmitchell019
129 Bernal Road: Might've been a Lucky/Sav-on at one time. (Lucky California)
3270 S. White Road: Evidence shows that this Lucky got a mid-2000's Albertsons remodel (industrial decor) (Lucky California)
551 E. Capitol Expressway: former Lucky/Sav-on (Lucky California). Also had a mid-2000's Albertsons remodel.
5506 Monterey Road: Foodmaxx
2027 Camden Ave: Albertsons gave this store Blue & Green Awnings (late 90's) decor. There is still some Albertsons trim on the walls.
3002 Story Road: Foodmaxx (former Safeway)
BTW, there is one closed Lucky near Saratoga that got a Jewel remodel around 2003 or so.
Re: Save Mart Sells (and leases back??) 6 San Jose Stores for $131 million
Posted: December 2nd, 2020, 8:07 pm
by pseudo3d
Leasing back only works if the company has some sort of long-term profitability plan, which is why it seems to be working for Albertsons and why it didn't for Sears. If Save Mart Cos. wants to just inject some money into the company as it reworks what makes it tick, it could work. If they're just trying to juggle around numbers to make the balance book look better, it won't.
Re: Save Mart Sells (and leases back??) 6 San Jose Stores for $131 million
Posted: December 2nd, 2020, 11:58 pm
by storewanderer
pseudo3d wrote: ↑December 2nd, 2020, 8:07 pm
Leasing back only works if the company has some sort of long-term profitability plan, which is why it seems to be working for Albertsons and why it didn't for Sears. If Save Mart Cos. wants to just inject some money into the company as it reworks what makes it tick, it could work. If they're just trying to juggle around numbers to make the balance book look better, it won't.
We will see what they do with the money. It is only 6 stores. About 3% of their store base. Albertsons has done significantly more sale-leasebacks. Save Mart needs to remodel the remainder of its stores ASAP, and close whatever doesn't do enough business to remodel (they should have a really good idea at this point- what stores have a chance and what do not- after all the extra business from the Pandemic).