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Old 05-25-2017, 08:37 AM
 
817 posts, read 747,104 times
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Why are Grocery Outlet Bargain Market, Aldi succeeding in SoCal where others failed?

You just can't beat Aldi's prices, although Walmart is highly competitive. I feel as though Trader Joe's, Whole Foods, and Sprouts are niche stores that will survive. I predict Stater Bros will as well, they are remodeling most of their stores.

But the bottom line is there is no way the current number of stores will survive in the long run. I feel Albertsons might be the first on the chopping block. Maybe Vons after that? Ralphs seems to have a nice strong hold on things, and a successful model.

I think it's the Millennials and their bargain attitude. Some of the higher end stores are just going to have trouble surviving this new economic environment. And just wait until Amazon opens their stores around town, oh my!
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Old 05-25-2017, 09:05 AM
 
Location: So Ca
26,580 posts, read 26,445,339 times
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Quote:
Originally Posted by 69Charger View Post
there is no way the current number of stores will survive in the long run. I feel Albertsons might be the first on the chopping block. Ralphs seems to have a nice strong hold on things, and a successful model.
Several Ralphs stores have closed in the past year in southern CA. I never thought Ralphs would have a problem competing. Hard to believe that Albertsons has the same trouble.

Albertsons and Ralphs Stores Closure - Grocery.com
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Old 05-25-2017, 09:16 AM
 
Location: Southern California
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Albertsons and Ralphs seem like prime candidates for continued troubles.
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Old 05-25-2017, 09:24 AM
 
Location: Los Angeles (Native)
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Looks like closest Aldi to me are Santa Clarita and Simi , both far to drive to a market . I did go to one in Florida just to check it out

I've been to a grocery outlet . Some very low prices on stuff at grocery outlet but a lot of the stuff is close to expiration or use by dates , not a big deal I guess if you will use it soon .
They have some good deals on wine , different wineries that you don't find at the bigger markets .

Since they are buying closeout stuff the inventory is always changing .
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Old 05-25-2017, 09:40 AM
 
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Albertson's has always felt run-down to me, no matter the neighborhood (the one on Wilshire in West L.A. particularly springs to mind - nice neighborhood, totally run-down store), and I never quite understood what they offered that the nicer Ralph's and Vons didn't.

Aldi is a lower-end grocer, with off-name brands, a limited selection and no fresh meat counter or bakery. As such, its competitors are Food4Less, Fresh&Easy, Save-A-Lot, Jons (to a certain degree) and a number of small ethnic chains. A secondary competitor would be WalMart and K-Mart (are there any left in L.A.?), but, again, the selection at Aldi is much more restricted than at the larger stores. Any of the higher-end stores shouldn't really be threatened by Aldi. That Albertson's and Ralph's are closing down stores cannot be definitively attributed to Aldi increasing their presence. Correlation vs. causation.

Millennials aren't Aldi's target customers. In fact, anyone who thinks millennials have a "bargain" attitude is mistaken. Unlike a lot of our parents, we will actually not try to save a buck at all costs. Instead, we have more of what one could refer to a "value" attitude if one was inclined to try to cover it all in one word. Millennials represent a large percentage of Whole Foods and Bristol Farms shoppers - I don't think anyone would argue that there are many bargains to be had there - and we have good reasons to go there (organic food, plenty of choices, stores that are pleasant to be in, whatever). What millennials don't want is to pay higher prices for the same box of cereal because the store needs money to cover substantial overhead. This is why we rarely shop at stores like Gelson's (serious question - can someone explain to me how they continue to stay in business?) - there's just no compelling reason to do so. Sure, the more frugal among us will give Aldi a go, but based on its limitations it will never become our #1 go-to store.
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Old 05-25-2017, 09:47 AM
 
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My daughter is a Millennial, and I have a few friends that are Millennials. They always talk about wanting bargains, unless it's travel or eating out.
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Old 05-25-2017, 09:50 AM
 
Location: Southern California
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I think millennials and people in general don't know what the word bargain means. They just want what's hip and trendy, bargains included. They don't think about the ramifications of purchases or racking up credit card debt.
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Old 05-25-2017, 09:59 AM
 
Location: Berwick, Penna.
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Albertson's and Safeway are publicly-held corporations; Ralph's is one of the major components of Certified Grocers of California, a cooperative similar to Wakefern / Shop-Rite in the Northeast. That disparity might have some influence in determining who survives, and who doesn't.
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Old 05-25-2017, 10:03 AM
 
5,681 posts, read 5,062,830 times
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Originally Posted by 69Charger View Post
My daughter is a Millennial, and I have a few friends that are Millennials. They always talk about wanting bargains, unless it's travel or eating out.
So...what? You are using a tiny sample size of a fairly homogeneous (water seeks its own level and all that) population to draw a conclusion.
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Old 05-25-2017, 10:06 AM
 
5,681 posts, read 5,062,830 times
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Quote:
Originally Posted by Mr_Geek View Post
I think millennials and people in general don't know what the word bargain means. They just want what's hip and trendy, bargains included.
Agree.
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