Sign of the times? (mortgage, equity, lease)

[azkylady2]

I seen today Mervyns is going out of business here in Ahwatukee, a year or so ago Albersons Grocery left. I asked the cashier why Albersons was leaving, she said the lease was raised and the company no longer felt is was cost effective to stay in the location. Are times worse then we think? should we be more worried? Just strange to see businesses leaveing an area such as this.

[Finger Laker]

i don't know about mervyns, but albertsons has been struggling for a long time now - i know they've closed many of them around the valley over the past year or two ...... it's a national issue with them though

and yes, times are pretty tough and some of these corporations that either expanded too fast or had too much competition expand out with them are contracting

[ArizonaBear]

Suffice to say: I hope that Albertsons does not go under............

We have already lost ABCO, Smiths, Smittys, etc. since 1990.

Admittedly; the Phx area had the reputation of having too many grocery stores but still..............

[Finger Laker]

i don't think anyone wants to see them go under - especially people in boise - they had a string of closures once before in the early 2000s and blamed it on the big box stores

now they've reorganized, closed all stores in OK, sold all of their FL stores to publix and have shut down a solid 100 stores across the nation blaming it on bad economic conditions, etc

to me the main culprit is poor managment & strategy - hopefully the new direction stabalizes them and I love that they got rid of the loyalty card only discounts

i generally like their stores

[thegirlinaz]

I have a relative that works at a Linens and Things in Suprise and that one, plus a few of their other stores are being shut down.

[joninaz]

Mervyns is pretty much closing up everywhere - it's not an AZ thing, just the wrong kind of store for shoppers these days nationwide. Target used to own them, but sold the chain to a group of private investors a few years back. I'm guessing Target is pretty smart and wouldn't part with a cash cow if they felt it would make them good money. Mervyns seemed to want to serve the middle ground of shoppers, but lost ground when the premium folks went to higher end stores, and the value folks went to Walmart, the Internet, etc. If you want a queen sized down comforter, for example, do you pay $200 at the department stores these days or $49 from an Internet retailer?

Albertsons, on the other hand, is a solid company and part of a much bigger national grocer group. The challenge here is the cost of serving a small group of stores. Grocers need a lot of volume sales to make money and their products have a very limited shelf life so it needs to move fast, but also needs to be replenished fast. That means distribution centers, wharehouses, lots of trucks, etc. If you only have a handful of stores, you can't support the big network bringing the stuff in. I like them and don't want to see them go, but they will probably reposition in markets where they have a large number of stores and can streamline the operations.

[ivanabacowboy]

We have already lost ABCO, Smiths, Smittys, etc. since 1990. Admittedly; the Phx area had the reputation of having too many grocery stores but still..............

You mean there were MORE grocery stores out here? I just posted the other day how it amazed me how many are here. Where I came from (Cleveland) we had just ONE (yes one) chain of any note left. Out here there seems to be a grocery store of some type on about every other corner. Is it different in Ahwatukee that there aren't as many groceries? I can think of at least 3 Albertson's up near me (and there are probably more I just dont remember or havent found them). Within a few miles of my house there are 3. None of them seem to be closing, tho I dont go there that frequently. FLW/101, Tatum/Greenway and Desert Ridge. Of the 3, the one at Desert Ridge is the nicest.

I heard about Mervyn's. I've never actually gone to one tho. But I do know joninaz is right-it isn't just closing up in Arizona.

[azkylady2]

I suppose california? Back in the Ohio Area Mervyns and Albersons were not in the area. never heard of either till moving here. We still have two Fry's locations and a safeway, I consider Safeway ok for small trips, not for meat or everything one would buy. I did walk into Mervs yesterday to check it out, I was thinking man this place is nothing but a bunch of cheap junk. I think Penny's Merchandise has gone down hill too, try and find a leather shoe, its all plastic. man made materials.

[azjack]

"We have already lost ABCO, Smiths, Smittys, etc. since 1990. Admittedly; the Phx area had the reputation of having too many grocery stores but still..............

You mean there were MORE grocery stores out here?"

And MegaFoods, Fred Meyer, as well as smaller chains.

IMO, most businesses that relied on MEW for purchases will suffer and many will close. They range from car manufacturers to candle shops. There will always be a need for groceries, but not necessarily for multiple locations in a small area.

[Ponderosa]

Albertsons was a sorry store that never caught on here. Bad locations, bad marketing, bad management - good riddance. Mervyns recently announced store closing around the country with 4 stores in AZ included. The were "unprofitable". Ahwatukee is getting long in the tooth and is past its peak. The kids are gone and the empty nesters and aging boomers just don't spend as much on things like clothing.