If Safeway were to file Chapter 11

Started by specialdad, March 18, 2013, 11:50:20 PM

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specialdad

Considering Genuardi's in Greater Philly just got bought by Giant, I doubt the rest of Safeway can hang on much longer. This is perhaps what will happen to each division in the next decade:

1. Baltimore/DC Safeway stores: stores would be sold to Super G, owned by Ahold.

2. Randalls (Houston, Texas): would almost certainly be bought by Rouses, a New Orleans chain that has been growing and growing since 2000.

3. Tom Thumb (Dallas, Texas): Publix, the Florida supermarket chain, would be a good match.

4. Dominick's (Chicago): Jewel-Osco, the largest competitor and really only competitor of Dominick's, would likely buy the chain. But a lot of Dominick's stores would perhaps replace existing Jewel-Osco stores. In the past 13 years, Jewel-Osco has had four different owners: first Acme, then Albertsons, then Supervalu, and now Cerberus.

5. Vons (Los Angeles): perhaps ShopRite would be interested in buying this chain?

6. rural Western Safeway stores: I could see Kroger buying these, to complement the existing Kroger stores in Texas.

7. San Francisco Safeway stores: Stop & Shop just might buy these. While it might seem odd for an East Coast chain to buy stores on the West Coast with none in between, I see this as the perfect opportunity for Ahold to broaden their horizons. If Stop & Shop can do well in and around Boston and NYC, San Francisco would be a great city for them.

8. Carrs (Alaska): Texas chain H-E-B just might buy these. The many rural towns in Texas with H-E-B stores are very lucky to have them. Much of the South is without a fair selection of grocery options. But H-E-B stores are usually very big, because they are spaced far apart due to the rural nature of Texas. This business model would be perfect for Alaska due to its also very rural character.

9. Pavilions (Los Angeles): this is the upscale division of Vons, so perhaps Wegmans might buy them to establish a West Coast presence. Perhaps Wegmans should expand into Texas first though. They already are in Virginia however, which is odd because Wegmans is primarily a PA/NJ/NY chain.

RoleModel

Just because those PA stores were dogs does not mean their entire operation is terrible. They are nowhere near the position the ex-Supervalu/Albertsons stores were, or in dire straits like A&P. They could potentially see them sell out in DC if they feel that they want to concentrate on the West Coast, but I think that would largely be it.

Oh, and it certainly wouldn't be Giant, the FTC would flip their lid.

specialdad

I have a better idea then: what if Shoppers, a division of Supervalu, bought the Baltimore/DC stores? That might not work though because Shoppers seems to have been struggling. Their Fredericksburg VA store, once one of the highest volume stores in the chain, closed not too long ago. But that was most likely due to Wegmans opening a few blocks away. Perhaps the town just wasn't big enough to support both of them.

retailisking

Safeway is thriving in DC, and has been for decades. They aren't going anywhere. If anything in that region is up for grabs it's Farm Fresh or Harris Teeter, the latter of which is officially on the block after receiving a couple of unsolicited offers. Safeway has had trouble with a couple of divisions where their conversions haven't gone over well. Genuardi's is an example of this, as is Dominick's in Chicago.

JimSawhill

Quote from: specialdad on March 18, 2013, 11:50:20 PM
Considering Genuardi's in Greater Philly just got bought by Giant, I doubt the rest of Safeway can hang on much longer. This is perhaps what will happen to each division in the next decade:

1. Baltimore/DC Safeway stores: stores would be sold to Super G, owned by Ahold.

2. Randalls (Houston, Texas): would almost certainly be bought by Rouses, a New Orleans chain that has been growing and growing since 2000.

3. Tom Thumb (Dallas, Texas): Publix, the Florida supermarket chain, would be a good match.

4. Dominick's (Chicago): Jewel-Osco, the largest competitor and really only competitor of Dominick's, would likely buy the chain. But a lot of Dominick's stores would perhaps replace existing Jewel-Osco stores. In the past 13 years, Jewel-Osco has had four different owners: first Acme, then Albertsons, then Supervalu, and now Cerberus.

5. Vons (Los Angeles): perhaps ShopRite would be interested in buying this chain?

6. rural Western Safeway stores: I could see Kroger buying these, to complement the existing Kroger stores in Texas.

7. San Francisco Safeway stores: Stop & Shop just might buy these. While it might seem odd for an East Coast chain to buy stores on the West Coast with none in between, I see this as the perfect opportunity for Ahold to broaden their horizons. If Stop & Shop can do well in and around Boston and NYC, San Francisco would be a great city for them.

8. Carrs (Alaska): Texas chain H-E-B just might buy these. The many rural towns in Texas with H-E-B stores are very lucky to have them. Much of the South is without a fair selection of grocery options. But H-E-B stores are usually very big, because they are spaced far apart due to the rural nature of Texas. This business model would be perfect for Alaska due to its also very rural character.

9. Pavilions (Los Angeles): this is the upscale division of Vons, so perhaps Wegmans might buy them to establish a West Coast presence. Perhaps Wegmans should expand into Texas first though. They already are in Virginia however, which is odd because Wegmans is primarily a PA/NJ/NY chain.

I think # 5, 7 and 9 would never happen! Here is my opinion on why:

5 Von's might be bought by their management. Shop Rite would have to built a warehouse on the west coast. I think Wakefern would rather go south into NC, SC, GA and maybe FL, before hitting the west coast.

7 San Francisco Safeway stores being bought by Stop & Shop. It might be bought by Ahold, but Stop and Shop is not doing as hot in New England  with Big Y, PC and now Wegmans building (and lets not forget Market Basket and Wakefern) in New England.
Stop and Shop might need to focus on their area more.

9 Pavillion's - I sincerely doubt that. I think Wegman's would rather do battle in New England and the Mid Atlantic states than focus on the west Coast. I think the management would buy it.

BillyGr

#5
Quote from: JimSawhill on March 22, 2013, 10:05:15 AM
I think # 5, 7 and 9 would never happen! Here is my opinion on why:

5 Von's might be bought by their management. Shop Rite would have to built a warehouse on the west coast. I think Wakefern would rather go south into NC, SC, GA and maybe FL, before hitting the west coast.

http://wakefern.shoprite.com/wholesale/our-customers/
Interesting to note that they supply an 8 store chain in Bermuda and also mention wholesaling to several other locations around the world.

Also - from Wikipedia - there were two stores in CA that were operating as franchises of PriceRite - apparently they have closed or converted to other brands, though (Thought I remembered hearing that in the past - just took a minute to find it).

specialdad

Interesting... thanks all of you for your interest in this topic. I meant to add a tenth point: Pak N Save, a discount division of Safeway in the San Francisco area that coexists with the regular Safeway stores, will most likely close all its stores. Few other supermarket chains would likely be interested in the Pak N Save sites. Actually the only Pak N Save that I know of personally is one in Emeryville (near Oakland), and the store is really seedy. There are only about five Pak N Save stores, so it wouldn't be a big surprise if this Safeway division were to close and the stores all sat empty for a while. Big Lots would be a great replacement for the Emeryville store.

Also, the empty 80's Safeway in Stevensville, Maryland (on the shore not terribly far from DC) that moved to a new store around 2002 is still empty. I propose that it becomes a Stein Mart. And perhaps the empty 70's Acme (which ironically closed very recently) not far away could become a Big Lots.

store215

Yeah, Safeway isn't going anywhere, despite how bad they screwed up Genuardi's. They are one of the top chains on the West Coast and in the MD/VA/D.C. area, and the 2nd largest grocery chain behind Kroger.

JimSawhill

Quote from: MBZ321 on March 24, 2013, 10:49:46 PM
Yeah, Safeway isn't going anywhere, despite how bad they screwed up Genuardi's. They are one of the top chains on the West Coast and in the MD/VA/D.C. area, and the 2nd largest grocery chain behind Kroger.

We can always play managers on here!! Safeway will never be gone!!