Cerberus, which is the owner of Albertsons, LLC, is now bidding for Harris Teeter.
Harris Teeter is not the troubled supermarket operator that Cerberus usually targets for acquisition. Harris Teeter is a chain that generates higher margins and features more premium offerings. Cerberus is looking to realize synergies between its Harris Teeter and recently purchased Supervalu properties.
This could be a sign of things brewing. Some of those stores purchased from Supervalu were beyond hope. However, transforming them into high end supermarkets under the name Harris Teeter could bring in the high income customers.
It works with Whole Foods. Whole Foods attracts high income people looking for gourmet and high quality foods. Those Whole Foods stores are packed with customers. Just look at those parking lots filled to capacity. Harris Teeter is popular and their stores are doing very good business. There is a market for high end groceries and organic products. Whole Foods seems like it is a monopoly in that category in many areas. Converting some troubled stores to Harris Teeter could make use of the real estate.
Cerberus is not buying all of Harris Teeter. They want to keep part of Harris Teeter publicly traded. This will keep Harris Teeter stock alive and allow Cerberus to use the Harris Teeter brand for all that it can.