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Supermarkets Search for Piece Of the Pie
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Supermarkets Search for Piece Of the Pie This is part one
of a two-part series on supermarkets and real estate. The U.S. Department of Agriculture estimates that Americans will spend $1.2 trillion annually on food by 2010 according to a report posted on Food Institute Online (www.foodinstitute.com). Grocery stores and restaurants are looking for new ways to maximize their slice of the edibles pie. The news seems to be equally rosy for supermarkets and restaurants alike although the majority of other sectors in retail seemed to be hedging its bets as the market holds its breath to see whether the current slowdown translates into a standstill. Food expenditures are expected to climb 3.8% in 2001 to $855 billion and another 3.5% in 2002. The USDA says that 52.29% of that money is spent on food to be prepared from home a jump of 4.6% over the 2000 figures. Supermarket-anchored centers have long been a staple of the community retail real estate market and at one time fueled the growth of shopping center development (and to a large extent still do). The grocery store industry has met this rise in demand with fewer but larger stores offering more services. According to the Food Marketing Institute the total number of grocery stores declined by almost 12% between 1990 and 2000. Meanwhile the percentage of stores classified as supermarkets (over $2 million annual sales) jumped 3.5% (from 21.2% in 1990 to 24.7% in 2000). The growth within supermarkets themselves is even more staggering. Average weekly sales in supermarkets are up 91% between 1990 and 2000 with the supermarkets average annual sales over $17.4 million. The size of the stores is also up over 43% to 44 600 sq.ft. Over 65% of those supermarkets were chain stores in 2000 up from 57% of supermarkets being in chains in 1990. While the percentage of smaller (less than $2 million annual sales) grocery stores have diminished to less than 30% of the total stores offering groceries. On the other end of the scale the wholesale club concept has captured 0.7% and continues to grow. The effects of competition from chains such as Wal*Mart Target and dollar stores selling grocery items as well as Wal*Mart entering the market with its Neighborhood Market concept have not fully been felt. Ethnic supermarkets and health food/organic specialty stores add to the number of choices for consumers and competition for the grocers. MarketResearch.com reports that the gourmet and specialty foods segment accounts for over $20 billion and is growing at an annual growth rate of 7%. The segment’s contribution is supposed to eclipse $27 billion by 2005 and 55% of those sales are from supermarkets. Ethnic markets tend to be smaller and do not offer the same selection as full-line stores but any business taken makes a difference with razor-thin margins. The gradual shrinking of the number of grocery stores has not stopped chains from expanding but all grocers are searching for the balance that will maximize their profits. Albertson’s recently announced that it would close 165 stores in 25 states reduce its divisions from 19 to 15 and reduce front-office personnel by 20%. Pathmark A&P Winn-Dixie Harris Teeter and other chains have faced similar decisions. The chains are hemmed in by federal anti-trust and restraint of trade campaigns when it attempts to acquire a local chain or each other. With chains seeking a profitable level in each market and locals battling to stay up with the big-spending national competition companies expanding and contracting simultaneously is likely to continue.
Kroger’s (Michigan Division) trades as Kroger’s at 109 locations in MI. The supermarkets occupy spaces of 55 000 sq.ft. to 62 000 sq.ft. in freestanding locations and strip centers. Growth opportunities are sought in MI during the coming 18 months. The company prefers to acquire sites. Leases running 20 years are typical. A turnkey operation with fixtures is required.For further information contact Rick Ragsdale Kroger’s (Michigan Division) 18334 Laurel Park Drive North Livonia MI 48152; 734-432-6582 Fax 734-462-0678.
King Kullen Grocery Co. Inc. trades as King Kullen and Wild by Nature at 48 locations in NY. The supermarkets occupy spaces of 35 000 sq.ft. to 60 000 sq.ft. in freestanding locations and power centers. Plans call for as many as five openings during the coming 18 months. Expansion will take place throughout NY. Leases running 45 years are typical.For further information contact Edward Glackin King Kullen Grocery Co. Inc. 185 Central Avenue Bethpage NY 11714; 516-733-7518 Fax 516-827-6263; Web site; www.kingkullen.com
Albertson’s (Northern Division) trades as Albertson’s at 195 locations in northern CA. The supermarkets occupy spaces of 57 000 sq.ft. to 65 000 sq.ft. in strip centers. Growth opportunities are sought throughout northern CA during the coming 18 months. Demographic requirements include a population of 25 000 within three miles earning $50 000 as the average income. Preferred cotenants include TJ Maxx Home Depot and Target. Leases running 25 years are typical.For more information: Ron Henry or Mike LaTourette Albertson’s (Northern Division) 1701 Marina Boulevard San Leandro CA 94577; 510-678-4211 Fax 510-678-4315.
Bashas’ Inc. trades as AJ’s Fine Foods at six locations in AZ. The supermarkets specializing in upscale gourmet food occupy spaces of 28 000 sq.ft. in urban/downtown areas freestanding locations and strip centers. Growth opportunities are sought throughout AZ during the coming 18 months. The company also trades as Bashas’ at 70 locations in AZ and CA. The supermarkets occupy spaces of 57 000 sq.ft. in urban/downtown areas freestanding locations and strip centers. Growth opportunities are sought throughout the coming 18 months. Leases running 20 years are typical. The company also trades as Food City at 22 locations in AZ. The supermarkets occupy spaces of 50 000 sq.ft. in urban/downtown areas freestanding locations and strip centers. Growth opportunities are sought throughout AZ during the coming 18 months. Leases running 20 years are typical. The company also trades as Mercado at four locations in AZ. The supermarkets occupy spaces of 35 000 sq.ft. to 45 000 sq.ft. in urban/downtown areas freestanding locations and strip centers. Growth opportunities are sought throughout AZ during the coming 18 months.For more information: John Basha Bashas’ Inc. P.O. Box 488 Chandler AZ 85244; 480-895-9350 Fax 480-895-5340.
C & R Supermarkets operates 11 locations in MO. The supermarkets occupy spaces of 20 000 sq.ft. to 25 000 sq.ft. in freestanding locations and strip centers. Growth opportunities are sought in IL IA and MO during the coming 18 months.For details contact Jerry Edwards C & R Supermarkets 206 N. Rollins Street Macon GA 63552; 660-385-2151 Fax 660-385-2992.
Rainbow Foods operates 44 locations in MN and WI. The supermarkets occupy spaces of 60 000 sq.ft. in freestanding locations and strip centers. Growth opportunities are sought throughout the existing markets during the coming 18 months.For further information contact Larry Sharp Rainbow Foods 800 Excelsior Boulevard Hopkins MN 55343; 952-931-1100 Fax 952-945-3943.
Raley’s Inc. trades as Nob Hill General Stores at 27 locations in CA. The supermarkets occupy spaces of 31 000 sq.ft. to 40 000 sq.ft. in freestanding locations and strip centers. Growth opportunities are sought in CA (Bay Area) during the coming 18 months. For further information contact Bob Henderson Nob Hill General Store 200 East 10th Street Gilroy CA 95020; 916-376-6900 Fax 916-376-6767.
Minyard Food Stores Inc. trades as Minyard Food Carnival Food and Sack ‘N Save Food at 74 locations in TX. The supermarkets occupy spaces of 50 000 sq.ft. to 70 000 sq.ft. in freestanding locations and strip centers. Growth opportunities are sought throughout TX during the coming 18 months. The company prefers build-to-suit opportunities.For further information contact Jim Conan Minyard Food Stores Inc. 777 Freeport Parkway Coppell TX 75019; 972-393-8700 Fax 972-304-3805.
Kohl’s Food Stores trades as Kohl’s and Kohl’s Food Emporium at 39 locations in WI. The supermarkets occupy spaces of 50 000 sq.ft. in freestanding locations and strip centers. Growth opportunities are sought throughout WI during the coming 18 months.For further information contact Linda Emory Kohl’s Food Stores 11100 West Burleigh Street Milwaukee WI 53201; 414-259-6750 Fax 414-259-6717.
Roundy’s Inc. trades as Pick N Save at 70 locations throughout IN MI OH and WI. The supermarkets occupy spaces of 45 000 sq.ft. to 70 000 sq.ft. in freestanding locations and strip centers. Growth opportunities are sought in OH and WI during the coming 18 months. Parcels of six to seven acres are required. For further information contact Dan Farrell Roundy’s Inc. 23000 Roundy Drive Pewaukee WI 53072; 262-953-7999 Fax 262-953-7989.
Albertson’s Inc. (Mid South Division) trades as Albertson’s and Seessel’s at 30 locations in AR MS MO and TN. The supermarkets occupy spaces of 58 000 sq.ft. in freestanding locations and strip centers. Plans call for seven openings during the coming 18 months. Expansion will take place throughout the existing markets. Preferred coanchors include home improvement and soft line retailers. A land parcel of five to eight acres is required. The company requires a hard corner for a fuel center. For further information contact Jim Chambers Albertson’s Inc. (Mid South Division) 1745 Union Avenue Memphis TN 38104; 901-544-8109 Fax 901-544-8104; Email: jim.chambers@albertsons.com
Busch’s Inc. trades as Busch’s Marketplace and Busch’s Valu Land at 12 locations in MI. The supermarkets occupy spaces of 35 000 sq.ft. to 45 000 sq.ft. in freestanding locations and strip centers. Plans call for one opening per year in all regions of MI except the northern. For details contact John Busch Busch’s Inc. 2240 S. Main Street Ann Arbor MI 48103; 734-913-8300 Fax 734-913-8394.
Supermarket Operations Inc. trades as Natchez Market Ball Foods Ferriday Market Piggly Wiggly Oakdale Market and Videlia at seven locations in LA and MS. The supermarkets occupy spaces of 40 000 sq.ft. in freestanding locations and strip centers. Growth opportunities are sought throughout the existing market during the coming 18 months. For more information: Harley Loy Supermarket Operations Inc. 116 Lower Woodville Road Natchez MS 39120; 601-445-2095 Fax 601-442-2197.
Nowell’s IGA trades as Nowell’s IGA Nowell’s Foods and Megamarkets at eight locations in MO. The supermarkets occupy spaces of 30 000 sq.ft. in freestanding locations and strip centers. Growth opportunities are sought throughout MO during the coming 18 months. For more information: Bill Zschoche Nowell’s IGA 900 N. Keene Street Columbia MO 65201; 573-474-9421 Fax 573-474-0664; Web site: www.nowells-iga.com
Brodbeck Enterprises Inc. trades as Dick’s Supermarket at eight locations in IL and WI. The supermarkets occupy spaces of 34 000 sq.ft. in freestanding locations and strip centers. Growth opportunities are sought throughout the existing markets during the coming 18 months. For more information contact Robert Brodbeck Brodbeck Enterprises Inc. 1035 E. Highway 151 Platteville WI 53818; 608-348-2343 Fax 608-348-3345.
Zupek’s LLC trades as The Original Irvine Ranch Market at one location in CA. The supermarket caters to an affluent clientele. Growth opportunities are sought in CA (southern) during the coming 18 months. Spaces of 15 000 sq.ft. to 20 000 sq.ft. in freestanding locations and strip centers are of interest. Preferred cotenants include fitness centers and coffee shops. For details contact Mike D’Angelo Zupek’s LLC 2651 Irvine Avenue Costa Mesa CA 92627; 949-631-4404 Fax 949-631-0329.
Food-A-Rama Supermarkets Inc. trades as Shop Rite at 22 locations in NJ. The supermarkets occupy spaces of 60 000 sq.ft. to 70 000 sq.ft. in strip centers. Growth opportunities are sought in central NJ during the coming 18 months. For more information: Howard Snowiss Food-A-Rama Supermarkets Inc. 922 Highway 33 Freehold NJ 07728; 732-462-4700 Fax 732-294-2235.
Charlie C McLamb Enterprises trades as Charlie C’s IGA at eight locations in NC. The supermarkets occupy spaces of 24 000 sq.ft. to 25 000 sq.ft. in freestanding locations and strip centers. Growth opportunities are sought throughout NC during the coming 18 months. For more information: Mack McLamb Charlie C McLamb Enterprises 3695 US 301 N Dunn NC 28334; 910-892-4124 Fax 910-892-5497.
Tapps Supermarkets Inc. trades as Key Foods Store at six locations in NY. The supermarkets occupy spaces of 21 100 sq.ft. in freestanding locations and strip centers. Growth opportunities are sought throughout NY during the coming 18 months. For more information: Anthony Bileddo Tapps Supermarkets Inc. 26309 Union Turnpike Glen Oaks NY 11004; 718-347-1900 Fax 718-347-1777.
Super Value Inc./Cub Foods trades as Cub Foods at 20 locations in GA. The supermarkets occupy spaces of 66 000 sq.ft. in urban/downtown areas freestanding locations and strip centers. Growth opportunities are sought throughout GA during the coming 18 months. For more information: John Davis Super Value Inc./Cub Foods 420 Thornton Road Suite 103 Lithia Springs GA 30122; 770-732-6800 Fax 770-732-6818.
Pick Quick Foods Inc. trades as Key Foods in seven locations in NY. The supermarkets occupy spaces of 21 111 sq.ft. in freestanding locations and strip centers. Growth opportunities are sought throughout NY during the coming 18 months. For more information: Jules Levine Pick Quick Foods Inc. 8310 Rockaway Boulevard Ozone Park NY 11416; 718-296-9100 Fax 718-296-6203.
Giant Eagle Inc. trades as Giant Eagle at 200 locations in OH PA and WV. The supermarkets occupy spaces of 60 000 sq.ft. to 115 000 sq.ft. in freestanding locations power specialty and strip centers. Plans call for at least 200 openings during the coming 18 months. Expansion will take place throughout the existing markets. For more information: Shelly Sponholz Giant Eagle Inc. 645 Alpha Drive Pittsburgh PA 15238; 412-963-6200 Fax 412-967-6104.
Nugget Market Inc. trades as Nugget Market and Food 4 Less at 10 locations in CA. The supermarkets occupy spaces of 50 000 sq.ft. in freestanding locations and strip centers. Growth opportunities are sought throughout CA during the coming 18 months. For more information: Eric Stille Nugget Market Inc. 168 Court Street Woodland CA 95695; 530-668-5585 Fax 530-668-5582.
PCC Natural Markets operates eight locations in WA. The specialty markets occupy spaces of 14 000 sq.ft. in freestanding locations. Growth opportunities are sought throughout WA during the coming 18 months. For more information: Randy Lee PCC Natural Markets 4201 Roosevelt Way NE Seattle WA 98105; 206-547-1222 Fax 206-545-7131; Web site: www.pccnaturalmarkets.com
PW Supermarkets Inc. trades as PW Supermarkets and PW Market Place at 11 locations in CA. The supermarkets occupy spaces of 40 000 sq.ft. in freestanding locations and strip centers. Growth opportunities are sought throughout CA during the coming 18 months. For more information: Merlin Stigee PW Supermarkets Inc. 2277 Alum Rock Avenue San Jose CA 95116; 408-258-4977 Fax 408-258-1761; Web site: www.pwmarkets.com
Zallie Supermarket trades as Shop Rite at seven locations in NJ and PA. The supermarkets occupy spaces of 48 000 sq.ft. in freestanding locations and strip centers. Growth opportunities are sought throughout the existing markets during the coming 18 months. For more information: George Zallie Sr./Jr. 1230 Blackwood Clementon Road Clementon NJ 08021; 856-627-6501 Fax 856-627-8650.
Buehler Foods Inc. trades as Buehler’s Buy Low at 27 locations throughout IL IN and KY. The supermarkets occupy spaces of 36 000 sq.ft. to 45 000 sq.ft. in freestanding locations and strip centers. Growth opportunities are sought throughout the existing markets during the coming 18 months. For more information: Dave Buehler Buehler Foods Inc. 1100 W. 12th Avenue Jasper IN 47546; 812-482-1366 Fax 812-482-9806; Web site: www.buehlerfoods.com
Binkowski Buy For Less trades as Buy For Less at six locations in OK. The supermarkets occupy spaces of 50 000 sq.ft. in freestanding locations and strip centers. Growth opportunities are sought throughout OK during the coming 18 months.For more information: Hank Binkowski 2129 West Hefner Road Oklahoma City OK 73120; 405-302-6273 Fax 405-302-0366.
D’Agostino Supermarkets Inc. trades as D’Agostino at 24 locations in NY. The supermarkets occupy spaces of 8 400 sq.ft. in downtown areas freestanding locations and strip centers. Growth opportunities are sought throughout NY during the coming 18 months. For more information: Nicholas D’Agostino III D’Agostino Supermarkets Inc. 1385 Boston Post Road Larchmont NY 10538; 914-833-4000 Fax 914-833-4060; Web site: www.dagnyc.com
Piggly Wiggly of Pinetops trades as Piggly Wiggly at 10 locations in NC. The supermarkets occupy spaces of 17 000 sq.ft. to 25 000 sq.ft. in freestanding locations and strip centers. Growth opportunities are sought throughout eastern NC during the coming 18 months.For more information: Marshall Dunn Piggly Wiggly of Pinetops P.O. Box 306 Pinetops NC 27864; 252-827-4875 Fax 252-827-3075.
Foodland of Lake City Inc. trades as Carabell IGA Foodland and Sav-A-Lot at six locations throughout FL. The supermarkets occupy spaces of 15 000 sq.ft. to 30 000 sq.ft. in strip centers. Growth opportunities are sought in northern FL (Jacksonville to Ocala in rural and less dense suburbs) during the coming 18 months. For more information contact Harvey L. Boris Foodland of Lake City Inc. P.O. Box 2095 Lake City FL 32056; 904-752-0067 Fax 904-755-1597.
Walter Lagestee Inc. trades as Walt’s Food Center at five locations throughout IL and IN. The supermarkets occupy spaces of 43 000 sq.ft. in freestanding locations and strip centers. Growth opportunities are sought throughout the existing markets during the coming 18 months. For more information: Bob Lagestee Walter Lagestee Inc. 330 West Taft Drive South Holland IL 60473 708-596-3166 Fax 708-596-0888; Web site: www.waltsfoods.com
Western Supermarket Inc. trades as Western Supermarket and Village Market at 11 locations in AL. The supermarkets occupy spaces of 25 000 sq.ft. in freestanding locations and strip centers. Growth opportunities are sought throughout AL during the coming 18 months. For more information: Kenneth Hubbard Western Supermarket Inc. 2614 19th Street S. Birmingham AL 35209; 205-879-3471 Fax 205-879-3476.
Town Country Market Inc. trades as Thriftway at six locations in WA. The supermarkets occupy spaces of 32 000 sq.ft. in freestanding locations and strip centers. Growth opportunities are sought throughout WA during the coming 18 months. For more information: Larry Nakata Town Country Market Inc. 2208 NW Market Street Seattle WA 98107; 206-784-7064 Fax 206-784-4415.
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