Raleys develops new "store support center" for Bashas

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Re: Raleys develops new "store support center" for Bashas

Post by arizonaguy »

rwsandiego wrote: December 21st, 2022, 1:36 pm Phoenix Business Journal ran a story today about the new support center. The following stood out to me:

"...Upon acquiring Bashas' a year ago, Raley's secured a short-term lease with the Basha family to operate out of the current headquarters at 22402 S. Basha Road in the Ocotillo neighborhood. Minor said the pursuit of a new office has been underway since the start of the year. Between the support and administrative teams working out of the headquarters and the sales and merchandising team working out of the offices at the distribution center, the new office is designed to house most of the local operations for Raley's. ..."

"...As for Bashas current headquarters it will eventually vacate, the future of that space will remain up to the Basha family.

“Raley’s will maintain the lease on the property through the end of 2023 to ensure there is a smooth transition from the current location in Chandler to the new support center in spring 2023," said Ashley Shick, director of communications an public affairs for Bashas’ Family of Stores. "The property will remain in the hands of the Basha family and it is up to them what becomes of the property after the support center is relocated.”


In other words, the Basha family will redevelop the property or sell it for market price.
That also explains why the artwork wasn't included in the bankruptcy as it was likely owned by the Basha family and not the company.

It seems like this site would be a prime location for redevelopment into condos / apartments.

I'm also curious what Raleys plans to do long term with Bashas'. It seems that they're letting it coast on its own right now. Again, the Bashas' banner has become a non factor in metro Phoenix and Tucson and they aren't even in mid-sized metro areas such as Prescott, Yuma and Sierra Vista.

Food City is also a declining banner consisting of a bunch of older traditional stores in declining areas. In the areas where the declining areas have gentrified, Food City has closed its store.

AJ's is a strong premium banner but only has so many opportunities where it makes sense (and it has those locations covered). It was overstored and had gone through a store fleet rationalization.

Bashas' / Raley's best hope would be if they could obtain the financing to obtain divested Albertsons / Safeway locations in the Kroger / Albertsons merger but all signs point to the Albertsons / Safeway Southwest division being either sold or spun off entirely if the merger even happens at all.
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Re: Raleys develops new "store support center" for Bashas

Post by rwsandiego »

Raley's has stated Bashas' could grow if Safeway/Albertsons divests stores. Not much of a strategy, if you ask me.
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Re: Raleys develops new "store support center" for Bashas

Post by storewanderer »

rwsandiego wrote: December 21st, 2022, 7:25 pm Raley's has stated Bashas' could grow if Safeway/Albertsons divests stores. Not much of a strategy, if you ask me.
Raleys should know better than to make this type of a move in a market like Arizona, after their experience in Las Vegas... but I guess someone has to buy the divested stores. I expect Save Mart's investment group with its former Cerberus people running the investment group and former Albertsons people running Save Mart to be a major buyer if not the entire buyer of divested stores out west, which will be real interesting.

Especially given Raleys "attitude" as of late, with things like this Raleys ONE format.

I am curious why they are spending money on a new headquarters facility. What we don't know is if Bashas does not want them using the headquarters facility and is planning to sell it and that is why they are needing to vacate it. It seems they would be better off building some new stores or something that would actually grow sales if there was a choice in the matter. I understand they like to bring the entire support team together into a single location and now it is split between the headquarters and the warehouse. So that also means the warehouse will give up some space. I assume the warehouse runs WAY under capacity given all of the store closures that have occurred so that will just add to the excess space there.

The artwork was owned by the company Bashas in 2010:
https://tucson.com/business/local/basha ... 76221.html
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Re: Raleys develops new "store support center" for Bashas

Post by pseudo3d »

storewanderer wrote: December 21st, 2022, 11:45 pm
rwsandiego wrote: December 21st, 2022, 7:25 pm Raley's has stated Bashas' could grow if Safeway/Albertsons divests stores. Not much of a strategy, if you ask me.
Raleys should know better than to make this type of a move in a market like Arizona, after their experience in Las Vegas... but I guess someone has to buy the divested stores. I expect Save Mart's investment group with its former Cerberus people running the investment group and former Albertsons people running Save Mart to be a major buyer if not the entire buyer of divested stores out west, which will be real interesting.
I believe Raley's also entered Albuquerque with divested stores from Lucky/Albertsons and then sold those stores off to LLC several years later (which in turn shuttled them off to United's division--today these, along with a few other independents also picked up and the one in Alamogordo--are the only "Albertsons Market" branded stores). Any stores that are getting divested in Arizona are going to be junk, they're better off adding new stores in growing markets.
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Re: Raleys develops new "store support center" for Bashas

Post by arizonaguy »

storewanderer wrote: December 21st, 2022, 11:45 pm
rwsandiego wrote: December 21st, 2022, 7:25 pm Raley's has stated Bashas' could grow if Safeway/Albertsons divests stores. Not much of a strategy, if you ask me.
Raleys should know better than to make this type of a move in a market like Arizona, after their experience in Las Vegas... but I guess someone has to buy the divested stores. I expect Save Mart's investment group with its former Cerberus people running the investment group and former Albertsons people running Save Mart to be a major buyer if not the entire buyer of divested stores out west, which will be real interesting.

Especially given Raleys "attitude" as of late, with things like this Raleys ONE format.

I am curious why they are spending money on a new headquarters facility. What we don't know is if Bashas does not want them using the headquarters facility and is planning to sell it and that is why they are needing to vacate it. It seems they would be better off building some new stores or something that would actually grow sales if there was a choice in the matter. I understand they like to bring the entire support team together into a single location and now it is split between the headquarters and the warehouse. So that also means the warehouse will give up some space. I assume the warehouse runs WAY under capacity given all of the store closures that have occurred so that will just add to the excess space there.

The artwork was owned by the company Bashas in 2010:
https://tucson.com/business/local/basha ... 76221.html
I don't understand why they couldn't consolidate everything to the warehouse / distribution center.

The Bashas' distribution center is massive. It was developed around the same time Bashas' was building stores in every new shopping center developed in the Phoenix area (mid - late 1990s) and I believe has the capacity to serve up to 200 stores (Bashas' has 123 stores). I believe they own it (unless the Basha family owns it as well) and in theory would cost less to convert some space there into office space than lease space somewhere else.

In the event that the Albertsons / Kroger merger goes through I'm going to assume Kroger will try its hardest to obtain the current Albertsons / Safeway distribution center. It's located next door to the Kroger / Fry's main distribution center and would allow Kroger to consolidate all of its Arizona warehouses (including the Ocado warehouse 1 mile away) into a very condensed geographic area. The Bashas' center would be a great pickup site for anyone who purchases the divested Albertsons / Safeway stores especially if someone picks up the entire Southwest division (provided Raley's doesn't continue operating out of it).
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Re: Raleys develops new "store support center" for Bashas

Post by storewanderer »

arizonaguy wrote: December 22nd, 2022, 3:12 pm

I don't understand why they couldn't consolidate everything to the warehouse / distribution center.

The Bashas' distribution center is massive. It was developed around the same time Bashas' was building stores in every new shopping center developed in the Phoenix area (mid - late 1990s) and I believe has the capacity to serve up to 200 stores (Bashas' has 123 stores). I believe they own it (unless the Basha family owns it as well) and in theory would cost less to convert some space there into office space than lease space somewhere else.

In the event that the Albertsons / Kroger merger goes through I'm going to assume Kroger will try its hardest to obtain the current Albertsons / Safeway distribution center. It's located next door to the Kroger / Fry's main distribution center and would allow Kroger to consolidate all of its Arizona warehouses (including the Ocado warehouse 1 mile away) into a very condensed geographic area. The Bashas' center would be a great pickup site for anyone who purchases the divested Albertsons / Safeway stores especially if someone picks up the entire Southwest division (provided Raley's doesn't continue operating out of it).
You have to understand Raleys. Raleys is not a cheap company. When Raleys does something and spends money, they spare no expense.

I would assume Raleys will keep operating out of that distribution center of Bashas. I don't see them building an entirely new warehouse.

Though we have to remember Raleys/Save Mart still have that joint venture Super Store Industries that is shared distribution for various dry goods/other items... Could the Bashas warehouse turn into a SSI warehouse and service both Bashas and then whatever divest stores I think Save Mart is going to pick up in AZ...?
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Re: Raleys develops new "store support center" for Bashas

Post by Retailuser »

Any update on that will happen to that nice art work there?
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Re: Raleys develops new "store support center" for Bashas

Post by retailfanmitchell019 »

storewanderer wrote: December 22nd, 2022, 6:28 pm Though we have to remember Raleys/Save Mart still have that joint venture Super Store Industries that is shared distribution for various dry goods/other items... Could the Bashas warehouse turn into a SSI warehouse and service both Bashas and then whatever divest stores I think Save Mart is going to pick up in AZ...?
Perhaps Kroger will trade SpinCo the Peyton's warehouse for the Albertsons/Safeway Southwest warehouse.
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Re: Raleys develops new "store support center" for Bashas

Post by jamcool »

Bashas’ also supplies a handful of independents and IGA stores through a division called National Grocery, they even supply stores in SoCal.
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Re: Raleys develops new "store support center" for Bashas

Post by arizonaguy »

retailfanmitchell019 wrote: January 31st, 2023, 3:05 pm
storewanderer wrote: December 22nd, 2022, 6:28 pm Though we have to remember Raleys/Save Mart still have that joint venture Super Store Industries that is shared distribution for various dry goods/other items... Could the Bashas warehouse turn into a SSI warehouse and service both Bashas and then whatever divest stores I think Save Mart is going to pick up in AZ...?
Perhaps Kroger will trade SpinCo the Peyton's warehouse for the Albertsons/Safeway Southwest warehouse.
That's what I was thinking.

The Albertsons / Safeway SW warehouse would be a logistical dream for Kroger (as the main Fry's warehouse is literally next door). Even if the merger doesn't go through I can imagine Kroger trying to get its hands on it.

The issue is that Albertsons / Safeway no longer has Safeway's former Tempe warehouse (Lucid motors now has it) although they still have a dairy plant next to the former warehouse. Closing that warehouse is partially why most of the NM stores went to United because they didn't have the capacity to serve AZ/Vegas/NM/El Paso from the Tolleson warehouse. I'm not sure that the Peyton's warehouse is large enough for the Albertsons / Safeway operation.
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