Retail Watchers

Bakeragr wrote: ↑February 11th, 2021, 6:12 am I can't seem to find a story backing up what I remember, but if I remember correctly, prior to Kroger purchasing Roundy's, they hinted that they would be doing an organic expansion into a new market. I don't believe that ever took place. However, when that was mentioned a few years ago, I really thought that the most logical new market for them would be Oklahoma.
I thought this as they do a great job in both Wichita and outstate Kansas, and they also seem to do well in Dallas. OKC and Tulsa are both dominated by Walmart and AWG-affiliated chains (Homeland and Reasor's). Now, Reasor's is pretty decent, but I'm not as familiar with Homeland.
However, I'm still baffled that Kroger threw in the towel in Springfield, MO in 2014. That might have been about the same time they threw around these expansion ideas. Pyramid Foods (Ramey Price Cutter) is the market leader in Springfield and had purchased several former Albertsons locations in Oklahoma, which they successfully ran into the ground and have either closed or sold to Homeland or Reasors. They really operate bad, non-competitive stores. If Kroger had simply waited out things in Springfield, I think they could have been the market leader there. I think they also got spooked by Hy-Vee, but here 7 years later and there's only one Hy-Vee in Springfield (2nd one is on its way, super slowly).
I think there's opportunity in Oklahoma, based on the gradual population growth and the lack of competitors. I think that's why Winco has dipped their toe into that market as well.

storewanderer wrote: ↑February 17th, 2021, 6:19 pm I think whatever money Kroger was going to use on organic expansion into a new market is all being shifted to this digital/Ocado thing. And they are expanding that into new markets I guess... at least that one center in FL. I don't count DC since Harris Teeter is there. We will see how that works out.

Giant Eagle is a problem because there are a number of franchise stores and quite a few franchisees. Cub has a similar problem but it is less stores and only a couple franchisees and could probably be addressed more easily than Giant Eagle.

Bagels wrote: ↑February 17th, 2021, 6:44 pm

storewanderer wrote: ↑February 17th, 2021, 6:19 pm I think whatever money Kroger was going to use on organic expansion into a new market is all being shifted to this digital/Ocado thing. And they are expanding that into new markets I guess... at least that one center in FL. I don't count DC since Harris Teeter is there. We will see how that works out.

Giant Eagle is a problem because there are a number of franchise stores and quite a few franchisees. Cub has a similar problem but it is less stores and only a couple franchisees and could probably be addressed more easily than Giant Eagle.

I wouldn’t be surprised if Kroger tried to build out a National e-commerce network, but Is be surprised if they organically built out a store fleet in a new market.

I suspect, in the coming years, there will be plenty of options for growth via acquisition that will be much cheaper than building out a new store fleet. For example, if Amazon acquired SpartanNash - as many expect - they will likely give away the store fleet. That’s a good opportunity for Kroger to grow. Building out a new store fleet is not.

If Kroger wanted to enter Florida, it could acquire Winn Dixie for cheap. Even with WD’s issues, it’s be significantly less than building out a network.

Bagels wrote: ↑February 17th, 2021, 6:44 pm
I wouldn’t be surprised if Kroger tried to build out a National e-commerce network, but Is be surprised if they organically built out a store fleet in a new market.

I suspect, in the coming years, there will be plenty of options for growth via acquisition that will be much cheaper than building out a new store fleet. For example, if Amazon acquired SpartanNash - as many expect - they will likely give away the store fleet. That’s a good opportunity for Kroger to grow. Building out a new store fleet is not.

If Kroger wanted to enter Florida, it could acquire Winn Dixie for cheap. Even with WD’s issues, it’s be significantly less than building out a network.

storewanderer wrote: ↑February 17th, 2021, 10:36 pm

Bagels wrote: ↑February 17th, 2021, 6:44 pm

storewanderer wrote: ↑February 17th, 2021, 6:19 pm I think whatever money Kroger was going to use on organic expansion into a new market is all being shifted to this digital/Ocado thing. And they are expanding that into new markets I guess... at least that one center in FL. I don't count DC since Harris Teeter is there. We will see how that works out.

Giant Eagle is a problem because there are a number of franchise stores and quite a few franchisees. Cub has a similar problem but it is less stores and only a couple franchisees and could probably be addressed more easily than Giant Eagle.

I wouldn’t be surprised if Kroger tried to build out a National e-commerce network, but Is be surprised if they organically built out a store fleet in a new market.

I suspect, in the coming years, there will be plenty of options for growth via acquisition that will be much cheaper than building out a new store fleet. For example, if Amazon acquired SpartanNash - as many expect - they will likely give away the store fleet. That’s a good opportunity for Kroger to grow. Building out a new store fleet is not.

If Kroger wanted to enter Florida, it could acquire Winn Dixie for cheap. Even with WD’s issues, it’s be significantly less than building out a network.

I don't think there is any reason for Amazon to acquire SpartanNash. Amazon seems to be building out its own grocery business with some help from Whole Foods just fine.

Bakeragr wrote: ↑February 11th, 2021, 6:12 am Pyramid Foods (Ramey Price Cutter) is the market leader in Springfield and had purchased several former Albertsons locations in Oklahoma, which they successfully ran into the ground and have either closed or sold to Homeland or Reasors.