San Clemente Albertsons converting to Pavilions

[ClownLoach]

First time I've seen a Albertsons to Pavilions conversion. Apparently this is underway at the larger of the two Avenida Pico Albertsons stores. This was a very nice Albertsons as is with a unusual "upscale version" of the Premium Fresh and Healthy decor in earth tones, so I would imagine it would not need much remodeling work other than converting to Pavilions decor.

Interestingly enough, apparently it was rebranded with a Pavilions sign before they started the remodel.

Also means they're not done expanding the Pavilions brand. There is a much smaller former Lucky just a couple blocks down the street I imagine they'd want to divest if they had to get rid of an overlapping store if the merger goes through.

[rwsandiego]

This decor reminds me a lot of a cross between the Shaws/Star interior that was the inspiration for "Colorful Lifestyle" (similar fonts), the Alberston's version of PFH (the leaf and the small words under the department signs), and the Jewel version of PFH (the earthtones and the small words under the signs). It's a nice package and well-suited for San Clemente. I don't think I've seen quite this decor elsewhere.

I wonder if the most recent Pavilions decor will be used (it's getting long in the tooth) or if they will come up with something else.

[ClownLoach]

This decor reminds me a lot of a cross between the Shaws/Star interior that was the inspiration for "Colorful Lifestyle" (similar fonts), the Alberston's version of PFH (the leaf and the small words under the department signs), and the Jewel version of PFH (the earthtones and the small words under the signs). It's a nice package and well-suited for San Clemente. I don't think I've seen quite this decor elsewhere.

I wonder if the most recent Pavilions decor will be used (it's getting long in the tooth) or if they will come up with something else.

It was a great looking store and didn't need a remodel.

[retailfanmitchell019]

This San Clemente Albertsons opened in early 2002. I'm not sure what interior it had before the fancy Supervalu remodel (Grocery Palace, maybe)? Demographics in the area are perfect for Pavilions, no surprise. This is the first Albertsons to Pavilions conversion ever.
This was the best remodel job SVU ever did to an Albertsons, considering most of the remodels they did were bland looking. I expect Quail Hill and Calabasas will be the next Albertsons to Pavilions conversions.
Assuming the 70% chance the merger doesn't happen, I also expect Albertsons to gradually eliminate the Vons banner, starting in places like South OC and far north San Diego County.

[ClownLoach]

This San Clemente Albertsons opened in early 2002. I'm not sure what interior it had before the fancy Supervalu remodel (Grocery Palace, maybe)? Demographics in the area are perfect for Pavilions, no surprise. This is the first Albertsons to Pavilions conversion ever.
This was the best remodel job SVU ever did to an Albertsons, considering most of the remodels they did were bland looking. I expect Quail Hill and Calabasas will be the next Albertsons to Pavilions conversions.
Assuming the 70% chance the merger doesn't happen, I also expect Albertsons to gradually eliminate the Vons banner, starting in places like South OC and far north San Diego County.

I've been in the area and have shopped that Albertsons since 2013 and don't remember it having different decor from this special version of PFH. It showed wear but has always been exceptionally well maintained. If I had to guess they're going to close the small former Lucky a couple blocks away finally when this remodel is done. It didn't make sense to have two stores so close. There is also a Ralphs Fresh Fare with the unusual "honeycomb" decor from Fred Meyer a mile away.

Wouldn't be difficult to remove the Vons brand from South OC because there's only one left (although we all have our own definitions of what constitutes "South" OC). San Juan Capistrano where they did a "repaint only remodel" of a very old, run down Vons couple years ago. But North OC is the opposite, more Vons than Albertsons.

[retailfanmitchell019]

I've been in the area and have shopped that Albertsons since 2013 and don't remember it having different decor from this special version of PFH. It showed wear but has always been exceptionally well maintained. If I had to guess they're going to close the small former Lucky a couple blocks away finally when this remodel is done. It didn't make sense to have two stores so close. There is also a Ralphs Fresh Fare with the unusual "honeycomb" decor from Fred Meyer a mile away.

Wouldn't be difficult to remove the Vons brand from South OC because there's only one left (although we all have our own definitions of what constitutes "South" OC). San Juan Capistrano where they did a "repaint only remodel" of a very old, run down Vons couple years ago. But North OC is the opposite, more Vons than Albertsons.

Albertsons has operated those two stores close to each other for over 2 decades without trouble. I'd argue that Albertsons in Gateway Village Plaza gets business from households south of Avenida Pico. Plus, it is right across the street from San Clemente High School and a block from the 5. I'd think that store is here to stay, but could get divested into SpinCo assuming the merger happens.

[ClownLoach]

I've been in the area and have shopped that Albertsons since 2013 and don't remember it having different decor from this special version of PFH. It showed wear but has always been exceptionally well maintained. If I had to guess they're going to close the small former Lucky a couple blocks away finally when this remodel is done. It didn't make sense to have two stores so close. There is also a Ralphs Fresh Fare with the unusual "honeycomb" decor from Fred Meyer a mile away.

Wouldn't be difficult to remove the Vons brand from South OC because there's only one left (although we all have our own definitions of what constitutes "South" OC). San Juan Capistrano where they did a "repaint only remodel" of a very old, run down Vons couple years ago. But North OC is the opposite, more Vons than Albertsons.

Albertsons has operated those two stores close to each other for over 2 decades without trouble. I'd argue that Albertsons in Gateway Village Plaza gets business from households south of Avenida Pico. Plus, it is right across the street from San Clemente High School and a block from the 5. I'd think that store is here to stay, but could get divested into SpinCo assuming the merger happens.

Yes, but there have been rumors for at least five years of the owner of the smaller center redeveloping. I used to manage a store nearby. This would be a logical step to consolidate the two stores. The high school is a problem too, huge traffic nightmare in the morning and afternoon. Abnormally low speed limit on Avenida Pico to create a speed trap and the street is always crawling with motorcycle officers who will cite you for 1 MPH over the limit on the steep downhill, and they ALWAYS show up in court if you try to fight the ticket. It's like a three block zone to avoid from I-5 to Camino Vera Cruz.

I believe that Albertsons is trying to "help" with the SpinCo plan by working on store clusters like these two Albertsons side by side, and anointing the "better" store to be kept if a merger were to happen later. By making moves now they run a better chance of getting to keep the store sites they would probably want to retain versus being at the mercy of the FTC or others. In most of these cases they might be trying to get the less desirable unit sold or onto SpinCo as an attempt to balance for competitive "loss" in a merger while controlling their own destiny vs the FTC doing so. (The FTC just looks at maps and doesn't care which is a nicer store, larger building, better lease etc) If the merger doesn't happen after a site sale or SpinCo does then they haven't really lost much, just thinned the herd of overlapping stores they could afford to lose anyway. Although I have questioned the viability of a SpinCo operation, I do wonder if they are deliberately planning within ACI to sell or send these specific stores to SpinCo well in advance of FTC and state AG negotiations to remove the overlaps up front/counteract loss of competition in certain areas and are also making plans to for the "kept" stores to be successful when those units leave the chain.

Three examples. First is this Albertsons turning into Pavilions, first of its kind but there's a Ralphs a mile away and the "third wheel" Albertsons down the street. Actually a 4th store, a Ralphs, is about two miles south, so the store in the middle is the small Albertsons. So they renovate the Albertsons they'd prefer to keep because it's the larger/nicer/more stable landlord situation store and rebrand as Pavilions then prep the smaller Albertsons for sale, or SpinCo if nobody bites on it. They "add" a competitor with SpinCo thus negating the removal of one with a merger later.

Second is that Vons/Pavilions changeover in Long Beach. A Vons is across the street from the Ralphs, and the Pavilions a mile up the road has been misbranded for a decade so they changed it to a Vons. The Vons across from Ralphs will certainly sell or go to SpinCo, so the now Vons would bring in that customer who wants to follow that banner. (Also runs counter to the theory of Vons banner exiting because it adds a store to that group, while Albertsons banner disappearing rumors get squashed by the switch of the new Valley Center store from Vons to the Albertsons banner).

Third is the odd situation on the Murrieta/Temecula border where they basically have a Vons on the Murrieta side untouched since 1990's where they just painted everything white, replaced linoleum with random colors just to fill the holes, and left up pictures so faded that they're sepia toned now. Beautiful Albertsons in pristine condition across the street they just fully remodeled with colorful lifestyle. No Ralphs within 5 miles in any direction although a F4L former Ralphs on Winchester Rd is maybe 3 miles away (yes, sidetracking to a different thread, that Food4Less I determined opened as a Ralphs - looking closely it has the oval label scar around the signs on the back). Obviously the Vons is either being sold or SpinCo or maybe even closed as it is possibly one of the most disgusting stores ACI operates in an area that adds at least 2000 new homes each year. The employees in the Vons know their store is being offered for sale now and say buyers from Asian and Hispanic operators have been shown the site.

For all three cases - they could actually do the ill advised SpinCo operation and if the rest of the merger fell apart they would be fine as they've defined the "successor" store through these changes. If the companies were reversed and Kroger had been operating these locations all three I mentioned as sale or SpinCo units would have been culled in the 2010s in efforts to maximize volume and leverage expenses. In other words - all three of these scenarios where a store near another store gets sold or closed probably should have happened anyway independent of any merger proposal with Kroger; all are just good business decisions.

[Bluelightspecial]

Speaking of Pavilions. (I don't know if this was posted somewhere else on the site), but it looks like they have finished the conversion of the Monecito Vons to a Pavilions.

[ClownLoach]

Speaking of Pavilions. (I don't know if this was posted somewhere else on the site), but it looks like they have finished the conversion of the Monecito Vons to a Pavilions.

They must have worked out a deal with the city to put up a sign comparable to the old Vons ones. The sign was apparently the sticking point. Last time I drove through there they were underway on a remodel but the Vons signs were still up. There is a very nice Albertsons in Summerland that would be a good candidate for Pavilions as well; it is identical to the San Clemente store being converted right now. I can't believe that Albertsons hasn't fought to get the Haggen divest site that Smart and Final bought back; they don't seem to do a lot of business out of it and they were outbid on the lease renewal for the Vons across the street so they've left the area. The Vons became Bristol Farms.

[rwsandiego]

This decor reminds me a lot of a cross between the Shaws/Star interior that was the inspiration for "Colorful Lifestyle" (similar fonts), the Alberston's version of PFH (the leaf and the small words under the department signs), and the Jewel version of PFH (the earthtones and the small words under the signs). It's a nice package and well-suited for San Clemente. I don't think I've seen quite this decor elsewhere.

I wonder if the most recent Pavilions decor will be used (it's getting long in the tooth) or if they will come up with something else.

It was a great looking store and didn't need a remodel.

I think you are talking about the San Clemente Alberstons-turned-Pavilions. If so, I agree. Maybe they won't remodel it!