🛒 Kroger-Albertsons Merger: California Impact

[ClownLoach]

Ralphs is advertising the grand reopening of the Temecula location today. This store already had the newest current Ralphs decor ("Neighborhood") and the website/ad do not indicate it was upgraded to Fresh Fare. I will go check it out this weekend and see if they actually have come up with something new. Hopefully it won't be cardboard cutout letters on white paint like Yorba Linda. This was always a solid, good executing Ralphs I would shop if I lived nearby, with decent traffic although I would not call it "busy" except weekends.

Obviously the remodeled flagship Walmart has shaken everyone up on the street. Stater Bros is 6 months into a total tear down (while open) remodel like they did in Oceanside. Albertsons remodeled to a nice version of Modern (Florida) decor, not the cheaper version popping up that is just paint and stick on lettering (no actual wood or tile behind the letters). So I guess Ralphs felt the need to step up as well. The neighborhood is still growing and there are some breathtaking new homes from a Japanese builder on their first US project up the street. This is probably the only area of California that is truly growing at a nearly double digit rate annually.

And... Giant waste of my time.
Ralphs did all of three things.

First, they deep cleaned the store which was long overdue.

Second, they removed the floor and went to polished concrete.

Third, they added a Starbucks kiosk with some pretty wall art showing Temecula grapevines behind it.

That is the entire remodel. Zero repaint. Zero new graphics. And worse, this store's last remodel was botched as they had some wall lighting over department graphics to light them up while the rest was dark. It's still that way, bright and dark areas all along the perimeter wall with no rhyme or reason unless you're along the wall and look up and see the misplaced fixtures. The store also had aisle hangers that were not centered properly, some practically over the gondola, and they didn't fix this either. Meanwhile Stater Bros is finishing up a half year long remodel down the street where every single perimeter department was moved and physically rebuilt from scratch, every refrigeration unit replaced, the only area not moved is the service meat counter. For all intents and purposes it is a completely new store, even the drop ceiling was raised and replaced so it is now even all across the store.

Absolutely zero investment by Kroger here and the grand reopening signs out front seem to just be confusing the customers who see the same damn store exactly the way it was.

This one already had a Starbucks kiosk, did they expand it?

Maybe they did a center store reset (does it still have a Kitchen Place?)? Typically a center store reset would not warrant a "grand reopening" ad though.

Maybe they made some changes to produce/bakery/deli?

Was the floor in bad condition that warranted removal? Wasn't the last time I was there, but it has been a while.

With how their latest interior looks maybe it is a good thing they just kept the other interior (I don't like that interior either).

Still has kitchen place and they printed some cardboard box signs for its endcaps that say "Welcome to Temecula Kitchen Place." The Starbucks kiosk is the newer model (the one with white counters you see also going into Albertsons stores). I don't remember it having one before, the newer version does stand out more which is probably why they are swapping them out in remodels. Produce, bakery, and deli look the same. Center store was probably reset but like I mentioned they still have the aisle hangers misaligned which probably is a result of shifting aisles in the past to accommodate the pallet racking for the paper products aisle that holds more merchandise. They swapped a short gondola by pharmacy for tall which makes little sense as it restricts visibility for shrink prevention purposes.

So yes, basically they did a grand reopening for a center store reset and concrete floor. Pathetic.

[storewanderer]

And... Giant waste of my time.
Ralphs did all of three things.

First, they deep cleaned the store which was long overdue.

Second, they removed the floor and went to polished concrete.

Third, they added a Starbucks kiosk with some pretty wall art showing Temecula grapevines behind it.

That is the entire remodel. Zero repaint. Zero new graphics. And worse, this store's last remodel was botched as they had some wall lighting over department graphics to light them up while the rest was dark. It's still that way, bright and dark areas all along the perimeter wall with no rhyme or reason unless you're along the wall and look up and see the misplaced fixtures. The store also had aisle hangers that were not centered properly, some practically over the gondola, and they didn't fix this either. Meanwhile Stater Bros is finishing up a half year long remodel down the street where every single perimeter department was moved and physically rebuilt from scratch, every refrigeration unit replaced, the only area not moved is the service meat counter. For all intents and purposes it is a completely new store, even the drop ceiling was raised and replaced so it is now even all across the store.

Absolutely zero investment by Kroger here and the grand reopening signs out front seem to just be confusing the customers who see the same damn store exactly the way it was.

This one already had a Starbucks kiosk, did they expand it?

Maybe they did a center store reset (does it still have a Kitchen Place?)? Typically a center store reset would not warrant a "grand reopening" ad though.

Maybe they made some changes to produce/bakery/deli?

Was the floor in bad condition that warranted removal? Wasn't the last time I was there, but it has been a while.

With how their latest interior looks maybe it is a good thing they just kept the other interior (I don't like that interior either).

Still has kitchen place and they printed some cardboard box signs for its endcaps that say "Welcome to Temecula Kitchen Place." The Starbucks kiosk is the newer model (the one with white counters you see also going into Albertsons stores). I don't remember it having one before, the newer version does stand out more which is probably why they are swapping them out in remodels. Produce, bakery, and deli look the same. Center store was probably reset but like I mentioned they still have the aisle hangers misaligned which probably is a result of shifting aisles in the past to accommodate the pallet racking for the paper products aisle that holds more merchandise. They swapped a short gondola by pharmacy for tall which makes little sense as it restricts visibility for shrink prevention purposes.

So yes, basically they did a grand reopening for a center store reset and concrete floor. Pathetic.

I think way back that store had a Coffee Bean and Tea Leaf kiosk, but the Starbucks has been there for a while.

I've seen a number of Ralphs switch the short gondola by pharmacy for a tall gondola. I don't like how it looks at all. I wonder if they have data that it somehow increases sales (seems to me like it would do the opposite). Supposedly this is done to increase SKU variety. I have a photo of that Temcula Store from 2011 and it had a tall angled aisle for drug, which I had not seen before.

Temecula

The configuration they used in NorCal had short (4-5 feet) angled aisles in front of pharmacy.

Roseville

[ClownLoach]

This one already had a Starbucks kiosk, did they expand it?

Maybe they did a center store reset (does it still have a Kitchen Place?)? Typically a center store reset would not warrant a "grand reopening" ad though.

Maybe they made some changes to produce/bakery/deli?

Was the floor in bad condition that warranted removal? Wasn't the last time I was there, but it has been a while.

With how their latest interior looks maybe it is a good thing they just kept the other interior (I don't like that interior either).

Still has kitchen place and they printed some cardboard box signs for its endcaps that say "Welcome to Temecula Kitchen Place." The Starbucks kiosk is the newer model (the one with white counters you see also going into Albertsons stores). I don't remember it having one before, the newer version does stand out more which is probably why they are swapping them out in remodels. Produce, bakery, and deli look the same. Center store was probably reset but like I mentioned they still have the aisle hangers misaligned which probably is a result of shifting aisles in the past to accommodate the pallet racking for the paper products aisle that holds more merchandise. They swapped a short gondola by pharmacy for tall which makes little sense as it restricts visibility for shrink prevention purposes.

So yes, basically they did a grand reopening for a center store reset and concrete floor. Pathetic.

I think way back that store had a Coffee Bean and Tea Leaf kiosk, but the Starbucks has been there for a while.

I've seen a number of Ralphs switch the short gondola by pharmacy for a tall gondola. I don't like how it looks at all. I wonder if they have data that it somehow increases sales (seems to me like it would do the opposite). Supposedly this is done to increase SKU variety. I have a photo of that Temcula Store from 2011 and it had a tall angled aisle for drug, which I had not seen before.
Photo696.jpg

The configuration they used in NorCal had short (4-5 feet) angled aisles in front of pharmacy.
ralphswoodcreekdir.jpg

The map below looks like Murrieta, not Temecula.
Temecula is produce and pharmacy on the left.

[storewanderer]

Still has kitchen place and they printed some cardboard box signs for its endcaps that say "Welcome to Temecula Kitchen Place." The Starbucks kiosk is the newer model (the one with white counters you see also going into Albertsons stores). I don't remember it having one before, the newer version does stand out more which is probably why they are swapping them out in remodels. Produce, bakery, and deli look the same. Center store was probably reset but like I mentioned they still have the aisle hangers misaligned which probably is a result of shifting aisles in the past to accommodate the pallet racking for the paper products aisle that holds more merchandise. They swapped a short gondola by pharmacy for tall which makes little sense as it restricts visibility for shrink prevention purposes.

So yes, basically they did a grand reopening for a center store reset and concrete floor. Pathetic.

I think way back that store had a Coffee Bean and Tea Leaf kiosk, but the Starbucks has been there for a while.

I've seen a number of Ralphs switch the short gondola by pharmacy for a tall gondola. I don't like how it looks at all. I wonder if they have data that it somehow increases sales (seems to me like it would do the opposite). Supposedly this is done to increase SKU variety. I have a photo of that Temcula Store from 2011 and it had a tall angled aisle for drug, which I had not seen before.
Photo696.jpg

The configuration they used in NorCal had short (4-5 feet) angled aisles in front of pharmacy.
ralphswoodcreekdir.jpg

The map below looks like Murrieta, not Temecula.
Temecula is produce and pharmacy on the left.

The map is the store in Roseville they closed years ago (it is a Raleys now). I just posted it to point out how they had the drug aisles in that store. I really liked the way they had the aisles set up in that store for drug. It looked nice, was great from a security/theft perspective, allowed for a clear line of sight from front of store in produce to back of store, and had a good flow; easy to shop.

I think Raleys converted that space into a nutrition department; which at this point would have probably been integrated into the rest of the store, so I am not sure what is there now. Raleys also I think closed the pharmacy in there so not sure what that is now.

[ClownLoach]

I think way back that store had a Coffee Bean and Tea Leaf kiosk, but the Starbucks has been there for a while.

I've seen a number of Ralphs switch the short gondola by pharmacy for a tall gondola. I don't like how it looks at all. I wonder if they have data that it somehow increases sales (seems to me like it would do the opposite). Supposedly this is done to increase SKU variety. I have a photo of that Temcula Store from 2011 and it had a tall angled aisle for drug, which I had not seen before.
Photo696.jpg

The configuration they used in NorCal had short (4-5 feet) angled aisles in front of pharmacy.
ralphswoodcreekdir.jpg

The map below looks like Murrieta, not Temecula.
Temecula is produce and pharmacy on the left.

The map is the store in Roseville they closed years ago (it is a Raleys now). I just posted it to point out how they had the drug aisles in that store. I really liked the way they had the aisles set up in that store for drug. It looked nice, was great from a security/theft perspective, allowed for a clear line of sight from front of store in produce to back of store, and had a good flow; easy to shop.

I think Raleys converted that space into a nutrition department; which at this point would have probably been integrated into the rest of the store, so I am not sure what is there now. Raleys also I think closed the pharmacy in there so not sure what that is now.

Makes sense and like I said Murrieta probably opened with that identical layout. For some reason I have seen posts saying Murrieta and Temecula are clones but that is not correct at all, Temecula matches Carlsbad and Seal Beach. Murrieta is all warehouse ceiling while Temecula is the more traditional Ralphs with low drop ceiling around the entire perimeter and front end (which I prefer). Maybe they will go "remodel" Murrieta by converting the terrible duck tape and mismatched floor to concrete, there wasn't anything wrong with Temecula's floor.

[storewanderer]

The map below looks like Murrieta, not Temecula.
Temecula is produce and pharmacy on the left.

The map is the store in Roseville they closed years ago (it is a Raleys now). I just posted it to point out how they had the drug aisles in that store. I really liked the way they had the aisles set up in that store for drug. It looked nice, was great from a security/theft perspective, allowed for a clear line of sight from front of store in produce to back of store, and had a good flow; easy to shop.

I think Raleys converted that space into a nutrition department; which at this point would have probably been integrated into the rest of the store, so I am not sure what is there now. Raleys also I think closed the pharmacy in there so not sure what that is now.

Makes sense and like I said Murrieta probably opened with that identical layout. For some reason I have seen posts saying Murrieta and Temecula are clones but that is not correct at all, Temecula matches Carlsbad and Seal Beach. Murrieta is all warehouse ceiling while Temecula is the more traditional Ralphs with low drop ceiling around the entire perimeter and front end (which I prefer). Maybe they will go "remodel" Murrieta by converting the terrible duck tape and mismatched floor to concrete, there wasn't anything wrong with Temecula's floor.

Temecula was a really nice Ralphs. It was definitely a little nicer than the ones they built in NorCal (which were also very very nice). It is too bad they took the floor out, given that it was in good condition. It seems to me they should have left Temecula alone and addressed the floor issue in Murrieta.

I think the Smiths in Carson City is going to be starting to remodel soon. There is a huge open space in front of entry now where they usually displayed a bunch of random clearance junk in carts or pallets/once had books/magazines. They have a lot of items on clearance 50% off, with UA mm-dd-yyyy on the top right corner of the shelf tags, with dates in April and June. That means the store is unauthorized to order those items after that date. When those shelf tags like that show up throughout the store, a center store reset is going to occur. They also have signs about a Starbucks being added to the store soon and related hiring. I can't wait to see how that goes. They have already done a number of things to this store; it got a pharmacy remodel in 2022, last year it got a deli remodel/sushi counter added in and new bakery display cases. However this store is in poor condition and it is still the most like the original Smiths configuration pre-Kroger of all the stores in the area.

[CalItalian]

Ralphs is advertising the grand reopening of the Temecula location today. This store already had the newest current Ralphs decor ("Neighborhood") and the website/ad do not indicate it was upgraded to Fresh Fare. I will go check it out this weekend and see if they actually have come up with something new. Hopefully it won't be cardboard cutout letters on white paint like Yorba Linda. This was always a solid, good executing Ralphs I would shop if I lived nearby, with decent traffic although I would not call it "busy" except weekends.

Obviously the remodeled flagship Walmart has shaken everyone up on the street. Stater Bros is 6 months into a total tear down (while open) remodel like they did in Oceanside. Albertsons remodeled to a nice version of Modern (Florida) decor, not the cheaper version popping up that is just paint and stick on lettering (no actual wood or tile behind the letters). So I guess Ralphs felt the need to step up as well. The neighborhood is still growing and there are some breathtaking new homes from a Japanese builder on their first US project up the street. This is probably the only area of California that is truly growing at a nearly double digit rate annually.

Smart and Final Extra! is opening literally next door to this Ralphs in the former Best Buy space this summer. New Aldi opened 1 mile down the street on February 1, 2024. Already quite popular.

Temecula is not growing very fast. Unlike Murrieta, Menifee, Wildomar, Lake Elsinore, they haven't approved many new single family homes or townhomes. Murrieta and Menifee have each surpassed Temecula in population.

[storewanderer]

Smart and Final Extra! is opening literally next door to this Ralphs in the former Best Buy space this summer. New Aldi opened 1 mile down the street on February 1, 2024. Already quite popular.

Temecula is not growing very fast. Unlike Murrieta, Menifee, Wildomar, Lake Elsinore, they haven't approved many new single family homes or townhomes. Murrieta and Menifee have each surpassed Temecula in population.

That is probably not great news for the Ralphs... even if Smart & Final only does $250k a week and $100k of that comes from Ralphs that is probably 15% of Ralphs volume.

If Kroger fixed pricing in California to get it more in line with surrounding states, it would be a non-issue.

Also a high quality perimeter and nice looking store would be a good way to fight Smart & Final being next door too. Oops on that remodel they just did downgrading store appearance...

[CalItalian]

Smart & Final Extra! new Temecula location next door to Ralphs has moved their grand opening date up to April 24. https://www.supermarketnews.com/retail- ... tid=NOb6eG

[ClownLoach]

Smart and Final Extra! is opening literally next door to this Ralphs in the former Best Buy space this summer. New Aldi opened 1 mile down the street on February 1, 2024. Already quite popular.

Temecula is not growing very fast. Unlike Murrieta, Menifee, Wildomar, Lake Elsinore, they haven't approved many new single family homes or townhomes. Murrieta and Menifee have each surpassed Temecula in population.

That is probably not great news for the Ralphs... even if Smart & Final only does $250k a week and $100k of that comes from Ralphs that is probably 15% of Ralphs volume.

If Kroger fixed pricing in California to get it more in line with surrounding states, it would be a non-issue.

Also a high quality perimeter and nice looking store would be a good way to fight Smart & Final being next door too. Oops on that remodel they just did downgrading store appearance...

The Ralphs pulls from a large area of people who prefer them to Albertsons or Stater. It's the only Ralphs around, the others are 10+ miles away. I know people in Fallbrook who drive to this Ralphs (they work in the area but prefer Ralphs over other chains). Remember there are 8 Albertsons/Vons between the Temecula and Murrieta Ralphs. In a few blocks on the Parkway you've got Ralphs, S&F, flagship Walmart Supercenter that somehow keeps looking even better each day since the remodel which is a miracle for them, Aldi, a large Albertsons that was built to be Lucky-SavOn combo store, and Stater Bros. A few thousand new luxury apartments going in up on Ynez a few miles from all of them so everyone will keep comping up. And the Ralphs is the first stop coming in from the desert communities up Hwy 79. I think if the merger had been successful the Ralphs would be retained and the Albertsons dumped on C&S if for no other reason than it would be exceptionally easy to close then subdivide into two or three box stores due to its shape and size.

This S&F is not even using all the space, and it was already a small Best Buy. They walled off the back third of the store or maybe even more looking in. They obviously have low expectations, and I expect it will split the business of the Murrieta store which has very little consumer traffic. It will most likely be geared to small businesses and not consumers. If the flagship Walmart remodel didn't do in the Ralphs then S&F won't either.

The Aldi is pretty popular out of the gate, but the one a short distance away on Rancho California is now a ghost town. It is poorly situated in the type of spot I'd expect to be a Walgreens. Again no real change of share, just a shifting of location. The Aldi is another space waster, they took a large furniture store and walled off the left and right quarters of the building but didn't configure them for subleasing. Two giant empty rooms.

If any other store is a threat to Ralphs, it's the Stater that is finishing up a 6 month long complete remodel taking it from a redecorated 90s era Albertsons convert into the latest SB prototype. The only department that wasn't torn down to the block wall was meats. Everything else has been rebuilt from floor to ceiling, I have to stop by and check on progress as they were finally painting and beginning graphics install. It looked like they were moving deli and bakery, and liquor had moved to the demolished old pharmacy area. It serves as a reminder of what a real remodel is, something we seldom see in SoCal these days.