Kroger to merge with Albertsons?

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Re: Kroger to merge with Albertsons?

Post by ClownLoach »

One funny observation tonight. Went into the local Ralphs to pick up a few items late. Store was quiet and saw closing time has now been pushed back to 1am which is a positive change since so many stores started closing earlier using COVID as an excuse.

Anyway in such a quiet store it's hard not to listen to the in store media loop playing on the PA. I find it interesting that they manage to play some sort of announcement using the Kroger name every two minutes or so. I did hear the Ralphs name once (so unlikely that it is an error like the wrong CD or something sent to the store). Seems they want to drive a tremendous level of awareness that they are "part of the Kroger family of stores." I noticed (via this loop) they rebranded the strangely named 1-2-3 Reward credit card as the Kroger Rewards credit card. They mention Boost by Kroger. Now hiring at all Kroger Family of stores, apply online or ask for the manager. Kroger Delivery when you shop at Ralphs.com and so on. I've never heard so many references to the Kroger name, and I don't think any of these commercials were for Kroger house brand foods either.

Certainly makes me wonder how interested they might be in wiping the slate clean and rolling that Kroger banner out. That might be the only real working solution for SoCal if there are weird timing issues with the divestitures and store sales that mess up the possibility of banner transfers. Also makes me wonder if they would leave other markets alone where they would only have to integrate one ACI banner. Or the opposite, maybe they don't care at all about messing with any of the banners as long as they can make everyone understand it's a Kroger store. Then they could leave every single banner in place but just stick that goofy Kroger "Fruit Cart" on the outside to unify them. They finally swapped in the cart as the logo for the "icon" for Ralphs social media but still haven't changed the "R" that is the app icon, at least not on Android OS. When you launch the app though now there is a "splash screen" with the fruit cart and Ralphs logo that seems to be programmed to stay there for a few seconds longer than necessary. Again probably to drive awareness.

When you think about the fruit cart, there is a smart aspect to such a brand icon - as long as there isn't a sign size restriction they could easily adapt most storefronts to shift the signage over to the right and add the cart without replacing the other sign as long as it isn't too old, neon, or deteriorated. I am wondering if this is the reason why the newest Fresh Fare didn't get their signs changed out but instead got giant window decals (Lake Forest on Portola). Why risk changing the sign twice?
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Re: Kroger to merge with Albertsons?

Post by jamcool »

It wouldn’t surprise me if they begin to use a Kroger-ized logo for the various store names.
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Re: Kroger to merge with Albertsons?

Post by retailfanmitchell019 »

ClownLoach wrote: March 26th, 2023, 1:04 am

Certainly makes me wonder how interested they might be in wiping the slate clean and rolling that Kroger banner out. That might be the only real working solution for SoCal if there are weird timing issues with the divestitures and store sales that mess up the possibility of banner transfers. Also makes me wonder if they would leave other markets alone where they would only have to integrate one ACI banner. Or the opposite, maybe they don't care at all about messing with any of the banners as long as they can make everyone understand it's a Kroger store. Then they could leave every single banner in place but just stick that goofy Kroger "Fruit Cart" on the outside to unify them. They finally swapped in the cart as the logo for the "icon" for Ralphs social media but still haven't changed the "R" that is the app icon, at least not on Android OS. When you launch the app though now there is a "splash screen" with the fruit cart and Ralphs logo that seems to be programmed to stay there for a few seconds longer than necessary. Again probably to drive awareness.

When you think about the fruit cart, there is a smart aspect to such a brand icon - as long as there isn't a sign size restriction they could easily adapt most storefronts to shift the signage over to the right and add the cart without replacing the other sign as long as it isn't too old, neon, or deteriorated. I am wondering if this is the reason why the newest Fresh Fare didn't get their signs changed out but instead got giant window decals (Lake Forest on Portola). Why risk changing the sign twice?
I wouldn't be surprised if on store exteriors and new shopping center pylons, the fruit cart dwarfs every Kroger banner logo, from Shaw's in Maine to Ralphs here in SoCal, similar to what Target has been doing with the bullseye, and what Walmart has been doing with the spark.
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Re: Kroger to merge with Albertsons?

Post by Bagels »

ClownLoach wrote: March 26th, 2023, 1:04 am One funny observation tonight. Went into the local Ralphs to pick up a few items late. Store was quiet and saw closing time has now been pushed back to 1am which is a positive change since so many stores started closing earlier using COVID as an excuse.

Anyway in such a quiet store it's hard not to listen to the in store media loop playing on the PA. I find it interesting that they manage to play some sort of announcement using the Kroger name every two minutes or so. I did hear the Ralphs name once (so unlikely that it is an error like the wrong CD or something sent to the store). Seems they want to drive a tremendous level of awareness that they are "part of the Kroger family of stores." I noticed (via this loop) they rebranded the strangely named 1-2-3 Reward credit card as the Kroger Rewards credit card. They mention Boost by Kroger. Now hiring at all Kroger Family of stores, apply online or ask for the manager. Kroger Delivery when you shop at Ralphs.com and so on. I've never heard so many references to the Kroger name, and I don't think any of these commercials were for Kroger house brand foods either.

Certainly makes me wonder how interested they might be in wiping the slate clean and rolling that Kroger banner out. That might be the only real working solution for SoCal if there are weird timing issues with the divestitures and store sales that mess up the possibility of banner transfers. Also makes me wonder if they would leave other markets alone where they would only have to integrate one ACI banner. Or the opposite, maybe they don't care at all about messing with any of the banners as long as they can make everyone understand it's a Kroger store. Then they could leave every single banner in place but just stick that goofy Kroger "Fruit Cart" on the outside to unify them. They finally swapped in the cart as the logo for the "icon" for Ralphs social media but still haven't changed the "R" that is the app icon, at least not on Android OS. When you launch the app though now there is a "splash screen" with the fruit cart and Ralphs logo that seems to be programmed to stay there for a few seconds longer than necessary. Again probably to drive awareness.

When you think about the fruit cart, there is a smart aspect to such a brand icon - as long as there isn't a sign size restriction they could easily adapt most storefronts to shift the signage over to the right and add the cart without replacing the other sign as long as it isn't too old, neon, or deteriorated. I am wondering if this is the reason why the newest Fresh Fare didn't get their signs changed out but instead got giant window decals (Lake Forest on Portola). Why risk changing the sign twice?
When Kroger introduced the fruit cart branding, a Cincinnati business journal reported that the project initially focused on rebranding the entire chain but they ultimately decided against it, citing the customer flight Albertsons endured when it rebranded Lucky.

Rebranding the chain would make a lot of sense. There are tons of people who like Kroger and/or one of its affiliates (yes, I know they don’t participate here ;) ) but don’t recognize its various banners. Most people I know, for example, don’t realize that Fry’s and Smith’s are basically the same store as Ralph’s. consider how many people on road trips seek out Walmart, Target, etc. maybe rebranding Ralphs wouldn’t make much sense, but swapping Smith’s in Las Vegas for Kroger would. Such move had been discussed for ~20 years… initially it was suggested Las Vegas stores would take on the Ralphs name then Kroger.

And while I know it’s a major merger, honestly, if Kroger hasn’t done it yet I don’t see them doing it anytime soon. They’ve brought the Kroger brand into most of their banners, and they’ve unified the pharmacies as Kroger Pharmacy (notice the billboards on major freeways saying “Get your flu shot today at your local Kroger Pharmacy inside Ralphs”).
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Re: Kroger to merge with Albertsons?

Post by storewanderer »

ClownLoach wrote: March 26th, 2023, 1:04 am One funny observation tonight. Went into the local Ralphs to pick up a few items late. Store was quiet and saw closing time has now been pushed back to 1am which is a positive change since so many stores started closing earlier using COVID as an excuse.

Anyway in such a quiet store it's hard not to listen to the in store media loop playing on the PA. I find it interesting that they manage to play some sort of announcement using the Kroger name every two minutes or so. I did hear the Ralphs name once (so unlikely that it is an error like the wrong CD or something sent to the store). Seems they want to drive a tremendous level of awareness that they are "part of the Kroger family of stores." I noticed (via this loop) they rebranded the strangely named 1-2-3 Reward credit card as the Kroger Rewards credit card. They mention Boost by Kroger. Now hiring at all Kroger Family of stores, apply online or ask for the manager. Kroger Delivery when you shop at Ralphs.com and so on. I've never heard so many references to the Kroger name, and I don't think any of these commercials were for Kroger house brand foods either.

Certainly makes me wonder how interested they might be in wiping the slate clean and rolling that Kroger banner out.

I don't think the Wal Mart spark means much to anyone. The Target logo certainly has value as a logo that anyone recognizes and they've had decades to market around that logo. The Kroger fruit cart is a meaningless logo. They are not putting it on redesigned private label items (just that weird new Kroger logo). I don't think they are as serious about the fruit cart as some here think. They don't even have the fruit cart on receipts or bags (or name badges at Smiths).

They have had these PA announcements at Smiths that mention Kroger for a while but lately they have increased significantly in frequency. Some announcements lately even refer to the Kroger Plus Shopper Card (Smiths calls its loyalty card a "Rewards Card").

At the end of the day I see rebranding. They really have no choice. They have too many banners and this Albertsons merger forces them to make a decision. Do they align around their existing brands (and kill the Albertsons/Safeway brands) or just wipe the slate clean and rebrand everything to Kroger?

One strategy I see that could be interesting is this:
They rebrand most of their existing stores to the Kroger brand (Smiths, Frys, Ralphs, etc.) but Fred Meyer and Harris Teeter keep their own brands. Then over time as they do major remodels/resets (and repricing), they rebrand the Safeway/Albertsons stores to the Kroger brand. In the mean time stores that are too small, captive audience locations, or too rural, keep the overpriced Safeway branding and it basically turns into a brand for inferior stores that have a smaller mix, way higher pricing, and are connected to Kroger but not with the Kroger brand. Kind of like how Kroger has been running QFC and Ralphs over the years.

Jewel is another one that I question if there is any reason to rebrand. Exactly how many "Kroger" stores actually compete with Jewel? I know there are a few on fringes of Jewel territory. I am not sure who has the best stores in that case. It may be appropriate to rebrand some of those "fringe territory" Jewel units to Kroger. I expect Mariano's ends up mostly divested/closed down and maybe F4L Chicago also ends up that way too.
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Re: Kroger to merge with Albertsons?

Post by jamcool »

The fruitcart is being put on fresh meat and deli labels, along with gas pumps and register tapes.
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Re: Kroger to merge with Albertsons?

Post by retailfanmitchell019 »

storewanderer wrote: March 26th, 2023, 10:49 pm
At the end of the day I see rebranding. They really have no choice. They have too many banners and this Albertsons merger forces them to make a decision. Do they align around their existing brands (and kill the Albertsons/Safeway brands) or just wipe the slate clean and rebrand everything to Kroger?

One strategy I see that could be interesting is this:
They rebrand most of their existing stores to the Kroger brand (Smiths, Frys, Ralphs, etc.) but Fred Meyer and Harris Teeter keep their own brands. Then over time as they do major remodels/resets (and repricing), they rebrand the Safeway/Albertsons stores to the Kroger brand. In the mean time stores that are too small, captive audience locations, or too rural, keep the overpriced Safeway branding and it basically turns into a brand for inferior stores that have a smaller mix, way higher pricing, and are connected to Kroger but not with the Kroger brand. Kind of like how Kroger has been running QFC and Ralphs over the years.

Jewel is another one that I question if there is any reason to rebrand. Exactly how many "Kroger" stores actually compete with Jewel? I know there are a few on fringes of Jewel territory. I am not sure who has the best stores in that case. It may be appropriate to rebrand some of those "fringe territory" Jewel units to Kroger. I expect Mariano's ends up mostly divested/closed down and maybe F4L Chicago also ends up that way too.
This is how I see Kroger going banner wise if the merger is completed:
Banners that will be killed off:
QFC (replaced with Safeway)
Andronico's and Pak N Save (replaced with Safeway)
Tom Thumb and Market Street (replaced with Kroger),
Jay C and PayLess in Indiana (replaced with Kroger),
Lucky in UT (replaced with Smith's),
Safeway in AZ (replaced with Fry's),
Safeway in NV/NM/ID/MT (replaced with Smith's),
Safeway in CO/NE/WY/SD (replaced with King Soopers or City Market, and maybe kill off City Market entirely),
Safeway Eastern Seaboard (replaced with Harris Teeter),
Baker's in Omaha (replaced with Dillons),
Gerbes in central Missouri (replaced with Dillons),
Metro Market in Milwaukee (replaced with Pick n Save).
Star Market ("Stah Mahket" :lol: ) in Boston (replaced with Shaw's)
Balducci's and Kings (replaced both with Acme),
Vons (replaced with Ralphs).

Most, if not all Albertsons banner stores, will be divested to Save Mart. The Albertsons name will be property of Save Mart.
I expect Food 4 Less/Foods Co./Rvler/Mariano's to go to Save Mart also.
There is no doubt about it that Save Mart would put Mariano's, Rvler, and the Chicago F4L stores up for sale 2 seconds after the ink dries out, similar to what happened when Cerberus acquired Cub stores around Chicago and those two Jewel stores in Springfield, IL.
I still think Save Mart could be a temporary vehicle until Ahold acquires the Albertsons banner.

Fred Meyer will be here to stay.

When all is said and done, Kroger will have 14 banners left:
Dillons
Fred Meyer
Fry's
Harris Teeter
King Soopers
Kroger
Pick n Save
Ralphs
Smith's
Safeway
Jewel
Acme
Shaw's
United

And considering that HT isn't really integrated into Kroger, I wonder if Kroger will end up putting HT up for sale.
Last edited by retailfanmitchell019 on March 27th, 2023, 7:38 pm, edited 1 time in total.
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Re: Kroger to merge with Albertsons?

Post by arizonaguy »

retailfanmitchell019 wrote: March 27th, 2023, 5:09 pm
storewanderer wrote: March 26th, 2023, 10:49 pm
At the end of the day I see rebranding. They really have no choice. They have too many banners and this Albertsons merger forces them to make a decision. Do they align around their existing brands (and kill the Albertsons/Safeway brands) or just wipe the slate clean and rebrand everything to Kroger?

One strategy I see that could be interesting is this:
They rebrand most of their existing stores to the Kroger brand (Smiths, Frys, Ralphs, etc.) but Fred Meyer and Harris Teeter keep their own brands. Then over time as they do major remodels/resets (and repricing), they rebrand the Safeway/Albertsons stores to the Kroger brand. In the mean time stores that are too small, captive audience locations, or too rural, keep the overpriced Safeway branding and it basically turns into a brand for inferior stores that have a smaller mix, way higher pricing, and are connected to Kroger but not with the Kroger brand. Kind of like how Kroger has been running QFC and Ralphs over the years.

Jewel is another one that I question if there is any reason to rebrand. Exactly how many "Kroger" stores actually compete with Jewel? I know there are a few on fringes of Jewel territory. I am not sure who has the best stores in that case. It may be appropriate to rebrand some of those "fringe territory" Jewel units to Kroger. I expect Mariano's ends up mostly divested/closed down and maybe F4L Chicago also ends up that way too.
This is how I see Kroger going banner wise if the merger is completed:
Banners that will be killed off:
QFC (replaced with Safeway)
Andronico's and Pak N Save (replaced with Safeway)
Tom Thumb and Market Street (replaced with Kroger),
Jay C and PayLess in Indiana (replaced with Kroger),
Lucky in UT (replaced with Smith's),
Safeway in AZ (replaced with Fry's),
Safeway in NV/NM/ID/MT (replaced with Smith's),
Safeway in CO/NE/WY/SD (replaced with King Soopers or City Market, and maybe kill off City Market entirely),
Safeway Eastern Seaboard (replaced with Harris Teeter),
Baker's in Omaha (replaced with Dillons),
Gerbes in central Missouri (replaced with Dillons),
Metro Market in Milwaukee (replaced with Pick n Save).
Star Market ("Stah Mahket" :lol: ) in Boston (replaced with Shaw's)
Balducci's and Kings (replaced both with Acme),
Vons (replaced with Ralphs).

Most, if not all Albertsons banner stores, will be divested to Save Mart. The Albertsons name will be property of Save Mart.
I expect Food 4 Less/Foods Co./Rvler/Mariano's to go to Save Mart also.
There is no doubt about it that Save Mart would put Mariano's, Rvler, and the Chicago F4L stores up for sale 2 seconds after the ink dries out, similar to what happened when Cerberus acquired Cub stores around Chicago and those two Jewel stores in Springfield, IL.
I still think Save Mart could be a temporary vehicle until Ahold acquires the Albertsons banner.

Fred Meyer will be here to stay.

When all is said and done, Kroger will have 14 banners left:
Dillons
Fred Meyer
Fry's
Harris Teeter
King Soopers
Kroger
Pick n Save
Ralphs
Smith's
Safeway
Jewel
Acme
Shaw's
United
I expect few, if any, Albertsons or Safeway units in Arizona to be absorbed into Kroger. I also don't expect that many banners to be kept.

It's clear that Kroger is doing what Macy's did when it started branding stores Rich's Macy's, Lazarus Macy's, etc. or what O'Reilly Auto Parts did when it started playing and featuring ads that went Kragen O'Reilly, Checker O'Reilly, Schucks O'Reilly.

Kroger is in the initial steps of making customers think of the Kroger name when they think of their local bannered store.

The pharmacy departments are now Kroger family of pharmacies. The pickup and delivery service have the Kroger stylized lettering. The Boost membership is company wide. New stores are being opened with a fruit cart logo next to the banner.

The banners are going away with or without the merger. The merger just gives them the "cover" to do it in the overlapping areas.

The only banners that may not go away are Food4Less, FoodsCo, Ruler Foods, Mariano's, Harris Teeter and Fred Meyer. If the merger happens Haggen, King's, Balducci's and Andronico's will probably survive. I could foresee Fred Meyer becoming Super Kroger, Kroger Supercenter, Fred Meyer by Kroger or something similar.
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Re: Kroger to merge with Albertsons?

Post by Super S »

I am not convinced that the Albertsons name will entirely disappear, especially in Idaho, but could also see this brand remaining in Montana and Wyoming.
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Re: Kroger to merge with Albertsons?

Post by bryceleinan »

Our local Smith’s in Dayton replaced their “open 24 hours” sign on the main pylon to a fruit cart logo. I also hear people mention the Kroger name a lot more often, so there’s that going for them. I also noticed the most recent remodel doesn’t mention Smith’s except for the welcome sign inside the store.
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