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Supermarket Roundup
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Supermarket RoundupA Closer Look at the Increasingly Competitive Supermarket IndustryTrader Joe’s (781-433-0234) plans to open a 12,587 sq.ft. specialty food and beverage market in a space formerly occupied by a warehouse located near Alhambra and L streets in Sacramento, CA. The plan calls for 58 parking spaces. The local design review board is slated to vote on the proposal this month. Grand Union Co. (973-890-6000) has seen its stock de-listed from the Nasdaq stock market last month. Its stock will still be publicly traded but on the less prestigious OTC Bulletin Board. Safeway (925-467-3000), fresh off a rosy earnings report for its second quarter, remains keen on acquiring additional supermarket chains. Recently, the company purchased the Lucky stores and converted them to Albertson’s in northern CA. To garner approval for the plan, Albertson’s was required to sell off 145 of its stores, 14 of which were in the inland region. However, in recent weeks at least three such stores have closed, including the SavMax store located on McKinley Avenue off of Highway 91 in Corona, CA and a 37,000 sq.ft. Ralph’s supermarket located on Highway 49 in Jackson, CA. Other stores are performing well for their new owners, including two supermarkets purchased by Vons. Foodland is planning to close its supermarket in Confluence, PA. The supermarket is the only one in the town of 900 people, and there are no firm plans for a replacement store to fill the void. The store is closing due to a suit filed against it by SuperValu Holding Company, Inc., the company’s grocery supplier. Foodland also closed a supermarket on Fort Couch Road in Bethel Park, PA, which had not been named in the suit. Albertson’s (208-395-6200) closed the four supermarkets it operates in Chattanooga, TN earlier this month. The company is said to be focusing its growth efforts in the state in Nashville and Memphis. Lack of sufficient customer acceptance has been blamed for the closings. Kohl’s (262-703-7000) plans to open a supermarket at the northeast corner of East Capitol Drive and North Holton Street in Milwaukee, WI. The 60,797 sq.ft. space on 6.7 acres was formerly occupied by an industrial building. Additionally, two stores of approximately 6,000 sq.ft. each are planned at the site as well. The new Kohl’s store will replace a store closed in 1999 on North Holton Street in Milwaukee. The opening is contingent upon zoning board approval. The company is also expected to purchase the 35-unit Rainbow Foods supermarket chain operating in MN and WI, which would mark its first entry into the MN market. Weis (570-286-4571) plans to open 17 superstores and expand or remodel 20 others in MD, NJ and PA during the coming 18 months. Its supermarket located at the intersection of Jonestown and Devonshire Roads in Lower Paxton Township, PA, is being moved to a larger building at the Paxton Town Centre. Ahold (302-662-8806), parent company of Edwards Super Food Stores plans to convert all 70 of its units to Stop & Shops by the end of the year. The intracompany transfer is not expected to result in any store closings. The company currently operates 32 stores in NJ and 38 in NY. Bi-Lo (864-234-8708) is currently renovating an older store to turn it into a 47,000 sq.ft. supermarket on Devine Street in Northeast Richland County, SC. The renovation will update the exterior and add 10,000 sq.ft. to include an expanded deli, bakery, cafe, pharmacy and a branch of Regions Bank.
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