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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 two of a two-part series on food and real estate. Doing more with less has long been a principle for successful businesses. Supermarkets are no exception. Much like in other sectors of retail there are fewer units but they are larger and doing more business. The trend towards consolidation and acquisitions holds true for the grocery industry as well. Blocks of stores change hands in all types of areas large population areas and smaller markets. Albertson’s announced 165 store closings in 25 states recently opening opportunities for competitors in those markets. Piggly Wiggly Kroger and BiLo have all been extremely active in the Carolinas and Atlanta. Acquiring established stores is the favored option for quick growth. "I see continued acquisitions of chains by other chains. I don’t think we have seen the last of the consolidations " said Paul Gilbert of Wegman’s Food Markets. "It doesn’t always hurt to close stores that are unprofitable." Other players in the market have also made a dent into the placement of supermarkets. Combined general merchandise stores with grocery elements (i.e. Wal*Mart Superstores SuperTargets etc.) and wholesale clubs are taking part of the market. Gilbert says that the big box retailers might exploit its distribution advantages into a bigger market share. "Wal*Mart will be a player in the market. The ‘Neighborhood Market’ concept may be placed in markets where they already have Supercenters " Gilbert said. "I don’t see what is going to stop them." He said that a shift into the supermarket specific stores will take a rethinking of real estate. "They might have to adjust their placement. You don’t necessarily put a supermarket on the edge of town like they did in some counties with their other stores " he said. Not all local chains are selling to national chains or shuttering their stores. Some like Binkowski Buy for Less a regional chain based in Oklahoma City OK have gotten larger along with its national competition. "We constantly look for sites " Hank Binkowski said. "Five of our six stores are already over 50 000 sq.ft. so we are more likely to expand than remodel." Dana Tanyeri editor in chief of webzine Supermarketworld.com says that local chains have focused more on fresh produce and prepared foods to deal with competition from restaurants and big box superstores. Some stores have gone so far as to add restaurants or cafe seating areas with separate entrances. Many stores have added fuel centers in outparcels as a way to cushion shrinking margins. She said that it is estimated that stores with fuel centers will more than quadruple their share of the total profits over the next ten years. "It certainly changes their real estate concerns and makes finding locations more difficult " Tanyeri said. "The grocery-anchored strip centers are kind of limited in the periphery options." "We can survive as long as we find the right sites. We are focusing more on a certain type of location " Gilbert said about the Wegman’s chain. "We had gotten into a ‘build it and they will come’ attitude and opened some stores where we were not the market of choice there." Gilbert said that the company’s business now determines its real estate instead of the other way around. "Our stores quality of service and selection drives our focus on site selection " he said. Norrenberns Foods Inc. trades as Cash Saver Food Store Mor-For-Less Tom’s Supermarket and Weffel’s Market at five locations throughout IL. The supermarkets occupy spaces of 11 500 sq.ft. in freestanding locations. Growth opportunities are sought for the Tom’s Supermarket concept only in Freeburgh IL during the coming 18 months.For more information contact Don Norrenberns Norrenberns Foods Inc. 95 Mascoutah Plaza Mascoutah IL 62258; 618-566-2118 Fax 618-566-2366. K-VA-T Food Stores Inc. trades as Food City and Super Dollar Store at 86 locations in KY TN and VA. The supermarkets occupy spaces of 35 000 to 42 000 sq.ft. in freestanding locations and strip centers. Growth opportunities are sought in southeast KY eastern TN and southwest VA during the coming 18 months. Leases running 20 years are typical. For more information contact Lou Scuderere K-VA-T Food Stores Inc. P.O. Box 1158 Abington VA 24210; 540-628-5503 Fax 540-628-6493. Macey’s Inc. trades as Macey’s Food & Drug at 10 locations throughout UT. The supermarkets occupy spaces of 65 000 sq.ft. to 70 000 sq.ft. in freestanding locations malls and power centers. Growth opportunities are sought throughout UT during the coming 18 months. For more information contact Mike Jackson Macey’s Inc. 9091 Sandy Parkway Sandy UT 84070; 801-561-5400 Fax 801-561-9933. Lin’s Supermarket Inc. trades as Lin’s Market Place at five locations in NV and UT. The supermarkets occupy spaces of 38 000 sq.ft. in freestanding locations. Growth opportunities are sought throughout the existing markets during the coming 18 months. For more information contact Bryan Simonson Lin’s Supermarket Inc. 1930 West Sunset Boulevard Suite 102 Saint George UT 84770; 435-673-9860 Fax 435-674-4892. Lowes Food Stores Inc. trades as Lowe’s and Jolly Roger at 48 locations in NM and TX. The supermarkets occupy spaces of 25 000 sq.ft. in urban/downtown areas freestanding locations malls and strip centers. Growth opportunities are sought throughout the existing markets during the coming 18 months. For more information contact Lezlie Harlan Lowes Food Stores Inc. 1804 Hall Avenue Littlefield TX 79339; 806-385-3366 Fax 806-385-5438. Family Foods of Gatesville Inc. trades as Family Foods IGA at six locations throughout NC. The supermarkets occupy spaces of 10 000 sq.ft. in freestanding locations. Growth opportunities are sought in rural markets throughout NC. For more information contact Mike Self Family Foods of Gatesville Inc. 102 Court Street Gatesville NC 27938; 252-357-0241 Fax 252-357-1709. M & E Food Mart Inc. trades as Market Basket and Lucky Seven at 34 locations in LA and TX. The supermarkets occupy spaces of 25 000 sq.ft. in urban/downtown areas freestanding locations and strip centers. Growth opportunities are sought throughout the existing markets during the coming 18 months. For more information contact Thomas Cormier M & E Food Mart Inc. 2420 Nederland Avenue Nederland TX 77627; 409-727-3104 Fax 409-727-2524. Supervalu Inc. trades as Cub Foods Save-A-Lot Butson’s Shop ‘N Save Scott’s Foods Hornbacher’s Bigg’s Farm Fresh IGA Shoppers Food Warehouse and Metro. The supermarkets occupy spaces of 40 000 sq.ft. to 120 000 sq.ft. in freestanding locations power and strip centers. Growth opportunities are sought nationwide during the coming 18 months. The Save-A-Lot concept requires 10 000 to 25 000 sq.ft. and locates in rural markets. For more information contact Ruben Johnson Supervalu Inc. 11840 Valley View Road Eden Prairie MN 55344; 952-828-4000 Fax 952-828-8918. Hale-Haskill/Foodland Inc. trades as Super H in 14 locations throughout AR and OK. The supermarkets occupy spaces of 25 000 sq.ft. to 30 000 sq.ft. in urban/downtown areas freestanding locations and strip centers. Growth opportunities are sought throughout the existing markets during the coming 18 months. For more information contact Bob Hawk Hale-Haskill/Foodland Inc. P.O. Box 582898 Tulsa OK 74115; 918-835-4484 Fax 918-641-5470. Foodland Supermarket Ltd. trades as Foodland and Sack ‘N Save at 27 locations throughout HI. The supermarkets occupy spaces of 30 000 sq.ft. in freestanding locations malls and strip centers. Plans call for two openings in the year 2003. Expansion will take place throughout HI. For more information contact Buzz Wo Foodland Supermarket Ltd. 3536 Harding Avenue Honolulu HI 96816; 808-735-7206 Fax 808-737-0791. Great Atlantic & Pacific Tea Co. Inc. trades as A&P Waldbaums Food Emporium Farmer Jack’s The Barn Markets Dominion Food Basics Kohl’s Save-A-Center Super Foodmart Super Fresh and Ultra Food & Drug at 815 locations in CT DE LA MD MI MS NJ NY PA OH WI Washington DC and Canada. The supermarkets occupy spaces of 25 000 sq.ft. to 65 000 sq.ft. in strip centers. Growth opportunities are sought throughout the existing markets during the coming 18 months. The company reports sales of $531 psf. For details contact Brian Pall Great Atlantic & Pacific Tea Co. Inc. 2 Paragon Drive Montvale NJ 07645; 201-571-8497 Fax 201-571-8008. Lowes Food Stores Inc. trades as Just Save and Lowes Stores at 98 locations in NC and VA. The supermarkets occupy spaces of 32 000 sq.ft. to 49 000 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 Roger Henderson Lowes Food Stores Inc. 1381 Old Mill Circle Winston Salem NC 27103; 336-659-0180 Fax 336-768-4702. Fenn Foods Inc. trades as ABO Thriftway Bob’s Thriftway and LaTienda Thriftway in five locations in NM and TX. The supermarkets occupy spaces of 24 000 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 contact Bill Fenn Fenn Foods Inc. P.O. Box 760 Roswell NM 88202; 505-627-5560 Fax 505-627-5561. Marvin’s Inc. trades as Marvin’s at 22 locations in AR KS and OK. The supermarkets occupy spaces of 25 000 sq.ft. in freestanding locations. Growth opportunities are sought throughout the existing markets during the coming 18 months. For more information contact James Marvin Marvin’s Inc. 600 East Cherokee Street Sallisaw OK 74955; 918-775-4418 Fax 918-775-2958. G.F. Buche Co. trades as Buche’s IGA Jubilee Gus Stop and Jamboree Foods at seven locations throughout IA NE and SD. The supermarkets occupy spaces of 14 000 sq.ft. in freestanding locations. Growth opportunities are sought throughout the existing markets during the coming 18 months. For more information contact Robert Buche III G.F. Buche Co. West Highway 50 Wagner SD 57380; 605-384-3964 Fax 605-384-5479. Arden Group Inc. trades as Gelson’s Markets at 17 locations in CA. The supermarkets offering general upscale and gourmet products occupy space of 30 000 sq.ft. to 35 000 sq.ft. in freestanding locations mixed-use specialty and strip centers. Plans call for two openings during the coming 18 months. Expansion will take place in CA (Los Angeles and Orange Counties). The company prefers build-to-suits. A land area of 2.5 to three acres is required. Leases running 30 years are typical. For further information contact Jim Hanson Arden Group Inc. 2020 South Central Avenue Compton CA 90220; 310-638-2842 Fax 310-631-0950. Discount Foods Inc. trades as Food Outlet at 11 locations throughout AL and GA. The supermarkets occupy spaces of 20 000 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 Mr. Lea Fite Discount Foods Inc. 2413 Alabama Highway Anniston AL 36202; 256-236-0533 Fax 256-236-4779. Tom’s Food Markets Inc. trades as Tom’s Food Market at six locations in MI. The supermarkets occupy spaces of 30 000 sq.ft. in freestanding locations and strip centers. Growth opportunities are sought throughout MI during the coming 18 months. For more information contact Dan Deering Tom’s Food Markets Inc. 1311 South Division Street Traverse City MI 49684; 231-946-4115. Jade Super Foods Inc. trades as Jade Super Foods and Piggly Wiggly in five locations in AR and LA. The supermarkets occupy spaces of 17 000 sq.ft. in freestanding locations malls and strip centers. Growth opportunities are sought throughout the existing markets during the coming 18 months. For more information contact Joe Foote Jade Super Foods Inc. 210 East Lincoln Street Hamburg AR 71646; 870-853-5642 Fax 870-853-8316. Lewis Jones Food Market Inc. trades as Lewis Jones Food Market at seven locations in GA. The supermarkets occupy spaces of 25 000 sq.ft. in freestanding locations. Growth opportunities are sought throughout GA during the coming 18 months. For more information contact Andy Riethmaier Lewis Jones Food Market Inc. 1410 43rd Street Columbus OH 31904; 706-324-1257 Fax 706-324-1259. Kaye’s Food Market Inc. trades as Kaye’s Food Market at eight locations in LA and MS. The supermarkets occupy spaces of 16 000 sq.ft. in freestanding locations and strip centers. Growth opportunities are sought throughout the existing markets during the coming 18 months. The company prefers freestanding locations. For more information contact Joel Kaye Kaye’s Food Market Inc. 104 Wall Street Suite 5 Columbia LA 71418; 318-649-0199 Fax 318-649-5299. McKay’s Markets Inc. trades as McKay’s Market and Price ‘N Pride at 10 locations throughout OR. The supermarkets occupy 17 000 sq.ft. in freestanding locations. Growth opportunities are sought throughout the existing markets during the coming 18 months. For more information contact Chuck McKay McKay’s Markets Inc. 226 Hall Street Coos Bay OR 97420; 541-269-5921 Fax 541-269-9563. Tidyman’s LLC trades as Tidyman’s Country Market and Dissmore’s IGA at 23 locations in ID MT and WA. The supermarkets occupy spaces of 46 000 sq.ft. in urban/downtown areas freestanding locations and strip centers. Growth opportunities are sought throughout the existing markets during the coming 18 months. For more information contact Jerry Streeter Tidyman’s LLC 10020 East Knox Avenue Suite 500 Spokane WA 99206; 509-928-7480 Fax 509-928-8409. Piggly Wiggly Carolina Co. Inc. trades as Piggly Wiggly at 133 locations in GA and SC. The supermarkets occupy spaces of 36 000 sq.ft. to 50 000 sq.ft. in urban/downtown areas freestanding locations and strip centers. Growth opportunities are sought throughout the existing markets during the coming 18 months.For further information contact Les McClanahan Piggly Wiggly Carolina Co. Inc. 76 Crogan Spur Charleston SC 29405; 843-554-9880 Fax 843-308-5767; Web site: www.thepig.net B. Green & Company trades as Cash And Carry Harvest Fare and Food Depot at eight locations in DE MD and VA. The supermarkets occupy spaces of 20 000 sq.ft. to 150 000 sq.ft. in freestanding locations malls power and strip centers. Growth opportunities are sought throughout MD during the coming 18 months.For more information contact Benjamin Sigman B. Green & Company 1300 South Monroe Baltimore MD 21230; 410-783-7777 Fax 410-332-1604. Holiday Supermarkets Inc. trades as Holiday Market Shop N Bag Holiday Thriftway and Shop and Stop at seven locations in PA. The supermarkets occupy spaces of 20 000 sq.ft. in freestanding locations and strip centers. Growth opportunities are sought throughout PA during the coming 18 months. For more information contact Harry Gilbert Holiday Supermarkets Inc. 6499 Sackett Street Philadelphia PA 19149; 215-335-9474 Fax 215-335-9556. Shoppers Food Warehouse Corp. trades as Shoppers Food Warehouse Metro Shopper’s Club Warehouse and Metro Food at 40 locations in MD and VA. The supermarkets occupy spaces of 50 000 sq.ft. to 73 000 sq.ft. in strip centers. Growth opportunities are sought throughout the existing markets during the coming 18 months.For further information contact Fred Clowes Shoppers Food Warehouse Corp. 4600 Forbes Boulevard Lanham MD 20706; 301-306-8600 Fax 301-306-8683. Jefferson Wholesale Grocery Inc. trades as Comet Food Warehouse and Comet Market at eight locations in PA. The supermarkets occupy spaces of 20 000 sq.ft. in freestanding locations and strip centers. Growth opportunities are sought throughout PA during the coming 18 months.For more information contact Frank Manco Jefferson Wholesale Grocery Inc. 400 Elk Run Avenue Punxsutawney PA 15767; 814-938-8660 Fax 814-938-2443. U-Save Food Stores trades as Nettie IGA and U-Save Food Stores at five locations in WV. The supermarkets occupy spaces of one to 20 acres in freestanding locations. Growth opportunities are sought throughout WV during the coming 18 months. For further information contact Day A. Gohil U-Save Food Stores 196 Middletow Richwood WV 26261; 304-846-6444 Fax 304-846-9660. Kenco Inc. trades as Country Market and Polly’s Food Service at 12 locations in MI. The supermarkets occupy spaces of 25 000 sq.ft. in freestanding locations and strip centers. Growth opportunities are sought throughout MI during the coming 18 months. For more information contact Sean Kennedy Kenco Inc. 1821 Spring Arbor Road Jackson MI 49203; 517-787-6081 Fax 517-787-0160.
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