Albertsons announces strategic review of company

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Re: Albertsons announces strategic review of company

Post by veteran+ »

Knight wrote: March 16th, 2022, 5:31 pm
arizonaguy wrote: March 9th, 2022, 8:29 am Another article suggests underperforming divisions might be sold:

https://www.phillyvoice.com/acme-albert ... U5PELydwec

My 2 cents is that an Albertsons / Ahold Delhaize merger makes perfect sense with Albertsons offloading its Mid Atlantic and Northeastern stores (The Giants and Stop and Shop are much stronger than Safeway Eastern / Acme / Shaw's). The Food Lion concept could also then be expanded nationwide in stores that no longer warrant the full "full service" offering.

Albertsons / Ahold Delhaize would be #1 or 2 on good parts of the East and West coasts, Chicago, and the Intermountain West. The Mid Atlantic / Northeastern stores would be a good fit for Publix, Kroger or some of the European grocers (Aldi, Lidl).
Albertson's and Ahold Delhaize combining would be interesting. Albertson's would have to divest Acme, Safeway,, and Shaw's/Star Market as Ahold Delhaize has Giant (Landover, Maryland), Giant/Martin's (Carlisle, Pennsylvania) Hannaford, and Stop & Shop.,

If something is broken, it needs to be fixed before it expands. Food Lion is constantly broken. It has not fixed itself internally.

Publix Super Markets could have interest in Safeway and Acme stores in Delaware, Maryland, Virginia, and the District of Columbia. Virginia is an existing state for Publix to further expand beyond its 19 retail locations.

Could limited assortment/discount grocers Aldi and Lidl consider entering the supermarket segment of food retailing?


I just don't think Publix will move into an area where Unions are in good shape.
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Re: Albertsons announces strategic review of company

Post by Knight »

veteran+ wrote: March 17th, 2022, 9:48 am
Knight wrote: March 16th, 2022, 5:31 pm
arizonaguy wrote: March 9th, 2022, 8:29 am Another article suggests underperforming divisions might be sold:

https://www.phillyvoice.com/acme-albert ... U5PELydwec

My 2 cents is that an Albertsons / Ahold Delhaize merger makes perfect sense with Albertsons offloading its Mid Atlantic and Northeastern stores (The Giants and Stop and Shop are much stronger than Safeway Eastern / Acme / Shaw's). The Food Lion concept could also then be expanded nationwide in stores that no longer warrant the full "full service" offering.

Albertsons / Ahold Delhaize would be #1 or 2 on good parts of the East and West coasts, Chicago, and the Intermountain West. The Mid Atlantic / Northeastern stores would be a good fit for Publix, Kroger or some of the European grocers (Aldi, Lidl).
Albertson's and Ahold Delhaize combining would be interesting. Albertson's would have to divest Acme, Safeway,, and Shaw's/Star Market as Ahold Delhaize has Giant (Landover, Maryland), Giant/Martin's (Carlisle, Pennsylvania) Hannaford, and Stop & Shop.,

If something is broken, it needs to be fixed before it expands. Food Lion is constantly broken. It has not fixed itself internally.

Publix Super Markets could have interest in Safeway and Acme stores in Delaware, Maryland, Virginia, and the District of Columbia. Virginia is an existing state for Publix to further expand beyond its 19 retail locations.

Could limited assortment/discount grocers Aldi and Lidl consider entering the supermarket segment of food retailing?


I just don't think Publix will move into an area where Unions are in good shape.
I doubt unions have any effect on Publix. Publix is focused on serving customers and growing. Competing supermarkets that are unionized have to deal with unionized employees.
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Re: Albertsons announces strategic review of company

Post by HCal »

Knight wrote: March 17th, 2022, 3:37 pm

I doubt unions have any effect on Publix. Publix is focused on serving customers and growing. Competing supermarkets that are unionized have to deal with unionized employees.
From what I've heard, Publix isn't a great employer, despite being "employee-owned". Its employees seem to be just as bitter as Walmart employees. But I suppose there is a shortage of unionized retail jobs in the southeast compared to other parts of the country, so they can get away with it.
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Re: Albertsons announces strategic review of company

Post by pseudo3d »

Knight wrote: March 17th, 2022, 3:37 pm
veteran+ wrote: March 17th, 2022, 9:48 am
Knight wrote: March 16th, 2022, 5:31 pm

Albertson's and Ahold Delhaize combining would be interesting. Albertson's would have to divest Acme, Safeway,, and Shaw's/Star Market as Ahold Delhaize has Giant (Landover, Maryland), Giant/Martin's (Carlisle, Pennsylvania) Hannaford, and Stop & Shop.,

If something is broken, it needs to be fixed before it expands. Food Lion is constantly broken. It has not fixed itself internally.

Publix Super Markets could have interest in Safeway and Acme stores in Delaware, Maryland, Virginia, and the District of Columbia. Virginia is an existing state for Publix to further expand beyond its 19 retail locations.

Could limited assortment/discount grocers Aldi and Lidl consider entering the supermarket segment of food retailing?


I just don't think Publix will move into an area where Unions are in good shape.
I doubt unions have any effect on Publix. Publix is focused on serving customers and growing. Competing supermarkets that are unionized have to deal with unionized employees.
I don't think it's in Publix's DNA to have unions (and their fast crawl up the Eastern Seaboard is slowing). The reason why I find it unlikely goes back to why Albertsons probably won't sell stores...if ACME and the former Safeway Eastern are doing so poorly as-is, why would Publix want them? The closest example I can think of is when Publix bought the former Martin's stores off of Royal Ahold as part of the merger, and I'm unfamiliar with the state of Martin's in Richmond (Martin's was probably a more valuable asset than Food Lion when it came to finding new buyers, for sure). If it was doing great before, then that's a very different case with ACME/Safeway. If it was marginal before, then the new stores are probably marginal and Publix wouldn't repeat that mistake on a bigger scale. If it was marginal before and Publix managed to turn them completely around to sustain their popularity long after the initial conversion buzz (and long enough time has passed for them to know it or not), then that fact would be paraded around in the press and we'd see more examples of "acquire and convert" with market entries, perhaps on an even grander scale. They did buy and convert a few Western Supermarket locations in the Birmingham area in 2019, but that was only like two or three locations.
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Re: Albertsons announces strategic review of company

Post by arizonaguy »

pseudo3d wrote: March 17th, 2022, 5:46 pm
Knight wrote: March 17th, 2022, 3:37 pm
veteran+ wrote: March 17th, 2022, 9:48 am



I just don't think Publix will move into an area where Unions are in good shape.
I doubt unions have any effect on Publix. Publix is focused on serving customers and growing. Competing supermarkets that are unionized have to deal with unionized employees.
I don't think it's in Publix's DNA to have unions (and their fast crawl up the Eastern Seaboard is slowing). The reason why I find it unlikely goes back to why Albertsons probably won't sell stores...if ACME and the former Safeway Eastern are doing so poorly as-is, why would Publix want them? The closest example I can think of is when Publix bought the former Martin's stores off of Royal Ahold as part of the merger, and I'm unfamiliar with the state of Martin's in Richmond (Martin's was probably a more valuable asset than Food Lion when it came to finding new buyers, for sure). If it was doing great before, then that's a very different case with ACME/Safeway. If it was marginal before, then the new stores are probably marginal and Publix wouldn't repeat that mistake on a bigger scale. If it was marginal before and Publix managed to turn them completely around to sustain their popularity long after the initial conversion buzz (and long enough time has passed for them to know it or not), then that fact would be paraded around in the press and we'd see more examples of "acquire and convert" with market entries, perhaps on an even grander scale. They did buy and convert a few Western Supermarket locations in the Birmingham area in 2019, but that was only like two or three locations.
ACME/Safeway still have some value that would be attractive to the right buyer. It's just that ACME/Safeway isn't as valuable as Giant-PA/Giant-MD/Stop & Shop. Giant-PA/Giant-MD/Stop & Shop are the "crown jewels" of the Ahold/Delhaize store fleet and I don't see the merged entity jettisoning off these assets (especially not Giant-PA / Stop & Shop).

If I'm not mistaken C&S is involved in the Giant - MD / Giant - PA distribution. I could envision a scenario in a hypothetical merger where Giant - PA / Giant - MD move to self-distribution using the ACME / Safeway distribution network and the ACME / Safeway store fleet is then sold to C&S for its revived Grand Union chain. The chain would then get to keep the more valuable stores and its distribution network intact while C&S would continue to have a solid store fleet to distribute to.
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Re: Albertsons announces strategic review of company

Post by Knight »

pseudo3d wrote: March 17th, 2022, 5:46 pm
Knight wrote: March 17th, 2022, 3:37 pm
veteran+ wrote: March 17th, 2022, 9:48 am



I just don't think Publix will move into an area where Unions are in good shape.
I doubt unions have any effect on Publix. Publix is focused on serving customers and growing. Competing supermarkets that are unionized have to deal with unionized employees.
I don't think it's in Publix's DNA to have unions (and their fast crawl up the Eastern Seaboard is slowing). The reason why I find it unlikely goes back to why Albertsons probably won't sell stores...if ACME and the former Safeway Eastern are doing so poorly as-is, why would Publix want them? The closest example I can think of is when Publix bought the former Martin's stores off of Royal Ahold as part of the merger, and I'm unfamiliar with the state of Martin's in Richmond (Martin's was probably a more valuable asset than Food Lion when it came to finding new buyers, for sure). If it was doing great before, then that's a very different case with ACME/Safeway. If it was marginal before, then the new stores are probably marginal and Publix wouldn't repeat that mistake on a bigger scale. If it was marginal before and Publix managed to turn them completely around to sustain their popularity long after the initial conversion buzz (and long enough time has passed for them to know it or not), then that fact would be paraded around in the press and we'd see more examples of "acquire and convert" with market entries, perhaps on an even grander scale. They did buy and convert a few Western Supermarket locations in the Birmingham area in 2019, but that was only like two or three locations.
Publix does not need unions to be successful.

Publix continues to increase store count along the Atlantic coast. It has announced two additional stores in Norfolk and Suffolk, Virginia. Its distribution centers are maxed out on serving additional stores that have opened. Its Greensboro (North Carolina) Distribution will relieve constraints and provide space to support future stores in North Carolina and Virginia.

Food Lion's stores in the Richmond, Virginia, area are not well. No one would have interest in bad stores. Ahold Delhaize USA could invest in Food Lion stores to make them competitive.
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Re: Albertsons announces strategic review of company

Post by Knight »

HCal wrote: March 17th, 2022, 5:45 pm
Knight wrote: March 17th, 2022, 3:37 pm

I doubt unions have any effect on Publix. Publix is focused on serving customers and growing. Competing supermarkets that are unionized have to deal with unionized employees.
From what I've heard, Publix isn't a great employer, despite being "employee-owned". Its employees seem to be just as bitter as Walmart employees. But I suppose there is a shortage of unionized retail jobs in the southeast compared to other parts of the country, so they can get away with it.
Kroger's associates are unionized. They could be disgruntled when Kroger closes their stores outright.
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Re: Albertsons announces strategic review of company

Post by storewanderer »

I am a little surprised Publix seems to be pushing further north, they are going to run into the union situation... they may just be testing the waters to see what happens. Other non union operations like Whole Foods have also done a good bit of expanding so maybe they think they can do it too. But if they try to acquire unionized stores they "close for remodeling" and reopen as non-union in a market like DC (or surrounding areas of MD/VA) I think they will be in for a rude awakening and it will not go smoothly for them. I think Publix is smart enough to know that too.
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Re: Albertsons announces strategic review of company

Post by pseudo3d »

arizonaguy wrote: March 17th, 2022, 7:54 pm
pseudo3d wrote: March 17th, 2022, 5:46 pm
Knight wrote: March 17th, 2022, 3:37 pm

I doubt unions have any effect on Publix. Publix is focused on serving customers and growing. Competing supermarkets that are unionized have to deal with unionized employees.
I don't think it's in Publix's DNA to have unions (and their fast crawl up the Eastern Seaboard is slowing). The reason why I find it unlikely goes back to why Albertsons probably won't sell stores...if ACME and the former Safeway Eastern are doing so poorly as-is, why would Publix want them? The closest example I can think of is when Publix bought the former Martin's stores off of Royal Ahold as part of the merger, and I'm unfamiliar with the state of Martin's in Richmond (Martin's was probably a more valuable asset than Food Lion when it came to finding new buyers, for sure). If it was doing great before, then that's a very different case with ACME/Safeway. If it was marginal before, then the new stores are probably marginal and Publix wouldn't repeat that mistake on a bigger scale. If it was marginal before and Publix managed to turn them completely around to sustain their popularity long after the initial conversion buzz (and long enough time has passed for them to know it or not), then that fact would be paraded around in the press and we'd see more examples of "acquire and convert" with market entries, perhaps on an even grander scale. They did buy and convert a few Western Supermarket locations in the Birmingham area in 2019, but that was only like two or three locations.
ACME/Safeway still have some value that would be attractive to the right buyer. It's just that ACME/Safeway isn't as valuable as Giant-PA/Giant-MD/Stop & Shop. Giant-PA/Giant-MD/Stop & Shop are the "crown jewels" of the Ahold/Delhaize store fleet and I don't see the merged entity jettisoning off these assets (especially not Giant-PA / Stop & Shop).

If I'm not mistaken C&S is involved in the Giant - MD / Giant - PA distribution. I could envision a scenario in a hypothetical merger where Giant - PA / Giant - MD move to self-distribution using the ACME / Safeway distribution network and the ACME / Safeway store fleet is then sold to C&S for its revived Grand Union chain. The chain would then get to keep the more valuable stores and its distribution network intact while C&S would continue to have a solid store fleet to distribute to.
That doesn't sound very realistic nor a good deal for everyone. If Mid-Atlantic was a "solid store fleet", then it shouldn't even be on the list to divest to begin with. C&S really isn't interested in retail, either, and is stuck with a bunch of stores it has to try to sell off...and while they DID get those dozen or so divested stores in the Tops/Price Chopper merger, that's hardly the basis for a new chain, and those stores will almost certainly be whittled down in number in the next year (either by closing or sales).
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Re: Albertsons announces strategic review of company

Post by veteran+ »

I beg to differ.

UNLESS the inner ideological CORE of Publix has changed, they will not enter a market where They believe Unions are strong or May prevail.

It has nothing to do with customers or even employees.

BTW, that employee happiness metric has been masked for many many years. I am pleased that the truth is finally seeing the light of day.
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