Bank Branches Inside Supermarkets

[storewanderer]

Store banks have largely disappeared from most regions I visit. What was once a feature in most stores, is now a feature in what feels like about 2 in 100 stores. The one bank I see that still has quite a few supermarket branches scattered around is US Bank but they have been actively closing those in my region.

You are right about Kroger trying to keep these branches. Smiths partnered with Zions for years on in-store branches and they had a deal every Smiths got a Zions (or affiliate) branch back when Smiths was an independent company. This enabled Zions to expand into Nevada under the banner Nevada State Bank. Over the years Zions made additional acquisitions in Nevada and ended up with a good number of freestanding branches, enough so that they were ready to divest all but a few of the Smiths locations. But rather than close outright, they sold the Smiths locations to US Bank. US Bank has since closed most of those units but still has some open. US Bank is keeping an ATM presence in all of the Smiths they leave. This is different from when I've seen US Bank exit Save Mart, Raleys, or Safeway units- they do not keep an ATM presence in those usually.

So are you saying there is an opportunity for credit unions to take over the spaces that banks previously occupied in supermarkets? This is an interesting idea and I have seen few in-store credit unions. I have seen some in-store credit unions in Wal Mart, there was at least one of these in Reno in the past, but that credit union closed that branch during COVID.

Another one I see is for instance there is there is a Raleys had had a US Bank. US Bank closed. Bank of America was the usual bank partner for Raleys in this market but over the years closed most/all of its branches, but kept an ATM presence in some Raleys. When US Bank closed, that store received a Bank of America ATM.

So my question here is, does the presence of a US Bank or Bank of America ATM, perhaps prohibit a credit union (or some other competing bank) from opening in-store?

[ClownLoach]

Store banks have largely disappeared from most regions I visit. What was once a feature in most stores, is now a feature in what feels like about 2 in 100 stores. The one bank I see that still has quite a few supermarket branches scattered around is US Bank but they have been actively closing those in my region.

You are right about Kroger trying to keep these branches. Smiths partnered with Zions for years on in-store branches and they had a deal every Smiths got a Zions (or affiliate) branch back when Smiths was an independent company. This enabled Zions to expand into Nevada under the banner Nevada State Bank. Over the years Zions made additional acquisitions in Nevada and ended up with a good number of freestanding branches, enough so that they were ready to divest all but a few of the Smiths locations. But rather than close outright, they sold the Smiths locations to US Bank. US Bank has since closed most of those units but still has some open. US Bank is keeping an ATM presence in all of the Smiths they leave. This is different from when I've seen US Bank exit Save Mart, Raleys, or Safeway units- they do not keep an ATM presence in those usually.

So are you saying there is an opportunity for credit unions to take over the spaces that banks previously occupied in supermarkets? This is an interesting idea and I have seen few in-store credit unions. I have seen some in-store credit unions in Wal Mart, there was at least one of these in Reno in the past, but that credit union closed that branch during COVID.

Another one I see is for instance there is there is a Raleys had had a US Bank. US Bank closed. Bank of America was the usual bank partner for Raleys in this market but over the years closed most/all of its branches, but kept an ATM presence in some Raleys. When US Bank closed, that store received a Bank of America ATM.

So my question here is, does the presence of a US Bank or Bank of America ATM, perhaps prohibit a credit union (or some other competing bank) from opening in-store?

I wouldn't describe the Kroger situation as universally accepting. They booted the US Bank out of my local Ralphs for order pickup storage. US Bank wanted to stay. This closure was before the Union Bank merger.

[babs]

Store banks have largely disappeared from most regions I visit. What was once a feature in most stores, is now a feature in what feels like about 2 in 100 stores. The one bank I see that still has quite a few supermarket branches scattered around is US Bank but they have been actively closing those in my region.

You are right about Kroger trying to keep these branches. Smiths partnered with Zions for years on in-store branches and they had a deal every Smiths got a Zions (or affiliate) branch back when Smiths was an independent company. This enabled Zions to expand into Nevada under the banner Nevada State Bank. Over the years Zions made additional acquisitions in Nevada and ended up with a good number of freestanding branches, enough so that they were ready to divest all but a few of the Smiths locations. But rather than close outright, they sold the Smiths locations to US Bank. US Bank has since closed most of those units but still has some open. US Bank is keeping an ATM presence in all of the Smiths they leave. This is different from when I've seen US Bank exit Save Mart, Raleys, or Safeway units- they do not keep an ATM presence in those usually.

So are you saying there is an opportunity for credit unions to take over the spaces that banks previously occupied in supermarkets? This is an interesting idea and I have seen few in-store credit unions. I have seen some in-store credit unions in Wal Mart, there was at least one of these in Reno in the past, but that credit union closed that branch during COVID.

Another one I see is for instance there is there is a Raleys had had a US Bank. US Bank closed. Bank of America was the usual bank partner for Raleys in this market but over the years closed most/all of its branches, but kept an ATM presence in some Raleys. When US Bank closed, that store received a Bank of America ATM.

So my question here is, does the presence of a US Bank or Bank of America ATM, perhaps prohibit a credit union (or some other competing bank) from opening in-store?

Fred Meyer has replaced most of Chase branches with credit unions. I've seen Alaska Federal Credit Union and I'm Portland most stores now have Onpoint Credit Unions. From what I understand, it was Chase that wanted out. Chase is going after higher income folks who just don't want to discuss their financial needs in a grocery store.

[storewanderer]

I wouldn't describe the Kroger situation as universally accepting. They booted the US Bank out of my local Ralphs for order pickup storage. US Bank wanted to stay. This closure was before the Union Bank merger.

In my area every single US Bank that was lost, was US Bank's doing. The stores were generally upset to lose US Bank. Most stores are not doing anything productive with the US Bank space. There are a couple exceptions.

Kroger did convert one US Bank space into a Pick up staging area, they built a wall and everything and you can't see into it.

Safeway also converted one US Bank space into a Drive Up and Go storage area. The entire area is wide open, they basically removed US Bank's counter, demolished its little office/ATM area, put up brighter lights, laid new tan Lifestyle floor tiles despite this store having the Modern interior, and put all the refrigeration equipment, store the carts in it, piles of crates, etc. into it so it is wide open and completely visible.

[Alpha8472]

I would guess that if a bank makes a deal for an ATM then that bank has exclusive rights to the store and prevents a competing bank or credit union from opening up a branch or putting in another competing ATM.

No bank would pay to rent space in a store and then have a competing ATM take away some of their business.

When 7-Eleven signs a contract for a certain region, the ATM company has exclusive rights to put their own branded ATM in the store. You never see 2 different branded ATMs in a convenience store.