(April 2022) Save Mart Sells/Leases Back 17 Properties?

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storewanderer
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(April 2022) Save Mart Sells/Leases Back 17 Properties?

Post by storewanderer »

Looks like they did some more sale/leasebacks in April?

https://www.us.jll.com/en/investorcente ... itedstates

Square footages listed seem off... wonder if this is even a legitimate listing?
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Re: (April 2022) Save Mart Sells/Leases Back 17 Properties?

Post by HCal »

Apparently Kingswood didn't waste any time extracting money from Save Mart after buying it. I have my doubts whether they even view the company as a viable long-term business.
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Re: (April 2022) Save Mart Sells/Leases Back 17 Properties?

Post by storewanderer »

HCal wrote: August 24th, 2022, 6:13 pm Apparently Kingswood didn't waste any time extracting money from Save Mart after buying it. I have my doubts whether they even view the company as a viable long-term business.
Seems like the pharmacies would have helped the value of the stores as a going concern...

This Kingswood has made some significant merchandising improvements at World Market. So far at Save Mart, I am not seeing improvements. I guess somethings things get worse before they get better, and I wasn't aware of the management changes that have taken place at Save Mart very recently, until this week...

But let's say these management changes bring in a bunch of old 30+ year Albertsons veterans in to run Save Mart (which is what appears to be happening). I am assuming most of these folks served at Albertsons LLC as well but that is not clear. Albertsons LLC with those 200 AZ/CO/TX Stores, heavily focused on everything possible to make the stores better and get more foot traffic, and that included pharmacy. They did a $4 "generic" program and also extended that program to the OTC shelves for various private label OTC items. They cut prices throughout the stores and added various items to perimeter in an effort to drive add on type perimeter sales (half loaves of french bread at $1, half packs of cinnamon rolls at $1, stuff like that). So far at Save Mart I am seeing a lot of price increases that are in some cases taking prices above Safeway which is completely out of reality, and also seeing scaled back perimeters.
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Re: (April 2022) Save Mart Sells/Leases Back 17 Properties?

Post by HCal »

storewanderer wrote: August 25th, 2022, 12:25 am Seems like the pharmacies would have helped the value of the stores as a going concern...

This Kingswood has made some significant merchandising improvements at World Market. So far at Save Mart, I am not seeing improvements. I guess somethings things get worse before they get better, and I wasn't aware of the management changes that have taken place at Save Mart very recently, until this week...

But let's say these management changes bring in a bunch of old 30+ year Albertsons veterans in to run Save Mart (which is what appears to be happening). I am assuming most of these folks served at Albertsons LLC as well but that is not clear. Albertsons LLC with those 200 AZ/CO/TX Stores, heavily focused on everything possible to make the stores better and get more foot traffic, and that included pharmacy. They did a $4 "generic" program and also extended that program to the OTC shelves for various private label OTC items. They cut prices throughout the stores and added various items to perimeter in an effort to drive add on type perimeter sales (half loaves of french bread at $1, half packs of cinnamon rolls at $1, stuff like that). So far at Save Mart I am seeing a lot of price increases that are in some cases taking prices above Safeway which is completely out of reality, and also seeing scaled back perimeters.
I'm seeing the same. Even if there is competent management, they have to do what ownership wants. If the owners have indicated that they want to see an immediate boost in profits and aren't concerned about the long term, then that is what management has to follow. They may know better, but it's not their problem.

I don't care too much about Save Mart as the nearest location is several miles from me, but thankfully there have not yet been any noticeable changes at Food Maxx. If anything, price increases have slowed a bit, and many items are now on par with Walmart or Aldi.
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Re: (April 2022) Save Mart Sells/Leases Back 17 Properties?

Post by storewanderer »

HCal wrote: August 25th, 2022, 12:52 am

I'm seeing the same. Even if there is competent management, they have to do what ownership wants. If the owners have indicated that they want to see an immediate boost in profits and aren't concerned about the long term, then that is what management has to follow. They may know better, but it's not their problem.

I don't care too much about Save Mart as the nearest location is several miles from me, but thankfully there have not yet been any noticeable changes at Food Maxx. If anything, price increases have slowed a bit, and many items are now on par with Walmart or Aldi.
I think some of what is happening may be due to the flux that takes place when management changes. New people come in with new ideas (I hope they have some new ideas) and it takes time to figure out how to implement the ideas. Meanwhile ideas of the departed management start to run on fumes.

Food Maxx is priced below Wal Mart on many items but is above them on some. They try to price Food Maxx off of WinCo but it doesn't seem as low priced as WinCo to me on many items. Wal Mart isn't exactly a bargain on groceries anymore and it is definitely an item by item sort of analysis that needs to be done (unless you're comparing it to Safeway/Albertsons then basically every item is much cheaper at Wal Mart on a regular price basis, but a few promotions will beat Wal Mart).
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