Albertsons and Safeway store closings? (Glendale, Scottsdale: construction, marketplace, moving to)

[Ztonyg]

Originally Posted by Pink Jazz

Sorry to bump an old thread, but the merger was finalized on January 30.


Now here are a few things to wonder:

• Will Safeway be keeping its loyalty program?
• Will Safeway stores be losing their self checkout machines? Albertsons dumped them in 2011.
• Will Safeway continue to operate its own gas stations? Albertsons sold its stations to Valero in 2008.
• What will happen to Albertsons and Safeway stores in close proximity that haven't been divested to Haggen? Example: There are both an Albertsons and a Safeway across the street from each other on Power Road on the Gilbert/Queen Creek border, and neither store is included in the list to be divested to Haggen.

From the sources I have read, I can surmise the following:

1.) Safeway will likely not be keeping its loyalty program. Albertsons dumped the loyalty program that was still in effect at the stores it bought from Supervalu in 2013. Apparently, the person who was in charge of the Safeway loyalty program management left the company after the merger was announced.

2.) I believe that the stores losing the self checkout machines is still to be determined. Many Safeways do not have self checkout machines. I believe that likely, as Albertsons has dumped these machines, that Safeway likely will do the same.

3.) Safeway likely will not operate the gas stations. Albertsons LLC sold its gas stations to Valero and Supervalu sold the non-Albertsons LLC gas stations to Tesoro. The gas stations make more sense when tied into a loyalty program, and since I strongly believe that the loyalty program is going away, it's likely that the gas stations are also going away. Fry's can successfully operate gas stations because it's parent Kroger has an entire convenience station division separate from its core grocery business that operates standalone convenience stores / gas stations that aren't tied into the grocery business. In additiona, Fry's parent Kroger has perfected the loyalty program.

4.) The Albertsons bannered stores that were not divested to Haagen that are in close proximity to Safeway bannered stores will eventually close when their leases expire if not sooner. The reason why is that the Albertsons bannered stores are non-union and the Safeway bannered stores are union and it's a lot easier to close a non-union store. I'd anticipate the following Albertsons stores to not survive into 2016. In fact, some of the duplicate stores are already closing in other markets, so I'm actually shocked that none of these are undergoing store closings as we speak:

- Surprise (at Loop 303 and Bell) (across the street from a Safeway and an under construction WINCO)
- Glendale (at Loop 101 and 59th Ave)(1 mile away from a Safeway at Loop 101 and 67th Ave)
- Scottsdale (at Loop 101 and Frank Lloyd Wright)(1 mile away from a Safeway at Thompson Park Pkwy and Frank Lloyd Wright)
- Gilbert / Queen Creek (Power Rd)(across the street from a Safeway)

I do anticipate that within 2-3 years the Albertsons banner will not exist in Arizona and that all of the stores will be bannered as Safeway.

[DetroitN8V]

I do most of my shopping at Safeway. I'll avoid them altogether if they do away with self checkout.

[Pink Jazz]

Originally Posted by Ztonyg

4.) The Albertsons bannered stores that were not divested to Haagen that are in close proximity to Safeway bannered stores will eventually close when their leases expire if not sooner. The reason why is that the Albertsons bannered stores are non-union and the Safeway bannered stores are union and it's a lot easier to close a non-union store. I'd anticipate the following Albertsons stores to not survive into 2016. In fact, some of the duplicate stores are already closing in other markets, so I'm actually shocked that none of these are undergoing store closings as we speak:

- Surprise (at Loop 303 and Bell) (across the street from a Safeway and an under construction WINCO)
- Glendale (at Loop 101 and 59th Ave)(1 mile away from a Safeway at Loop 101 and 67th Ave)
- Scottsdale (at Loop 101 and Frank Lloyd Wright)(1 mile away from a Safeway at Thompson Park Pkwy and Frank Lloyd Wright)
- Gilbert / Queen Creek (Power Rd)(across the street from a Safeway)

I do anticipate that within 2-3 years the Albertsons banner will not exist in Arizona and that all of the stores will be bannered as Safeway.

For the locations on Power Road, I agree that Safeway will be the likely surviving store, since that Albertsons has always been pretty empty every time I have been there. I think that would be a perfect location for a Whole Foods store, as the nearest location to Gilbert and Queen Creek is at Ray and Loop 101 in Chandler. I think the median income in the area is high enough for a Whole Foods to be successful, as there are several upscale subdivisions nearby.

Basha's is unlikely since there is one down the road south at Power and Chandler Heights in Queen Creek.

Fry's is also unlikely, as there are two locations in the vicinity (a Fry's Marketplace at Higley and Chandler Heights, and a Fry's at Pecos and Higley).

[go09]

There are both an Albertson's and a Safeway across the street from one another at Baseline & Ellsworth off the 60 in Mesa. Safeway seems a little busier... but as far as I've been able to find out, neither store will be closing.

[Ztonyg]

Originally Posted by go09

There are both an Albertson's and a Safeway across the street from one another at Baseline & Ellsworth off the 60 in Mesa. Safeway seems a little busier... but as far as I've been able to find out, neither store will be closing.

If both stores are profitable this -may- be like Fry's/Smith's/Smitty's where the duplicate stores were kept open until their leases ran out (and the notable example of Rural Rd and Ray Rd where there were still 2 Fry's stores (one on the NW corner and one on the SE corner) 16 years after Smith's and Smitty's became merged into Fry's. I believe that the Fry's store on the SE corner finally closed within the last year or so.

I just don't get the impression (from past history) that Cerberus (who owns the Albertsons - Safeway company) will do that.

[Solere]

Originally Posted by Ztonyg

From the sources I have read, I can surmise the following:

1.) Safeway will likely not be keeping its loyalty program. Albertsons dumped the loyalty program that was still in effect at the stores it bought from Supervalu in 2013. Apparently, the person who was in charge of the Safeway loyalty program management left the company after the merger was announced.

2.) I believe that the stores losing the self checkout machines is still to be determined. Many Safeways do not have self checkout machines. I believe that likely, as Albertsons has dumped these machines, that Safeway likely will do the same.

3.) Safeway likely will not operate the gas stations. Albertsons LLC sold its gas stations to Valero and Supervalu sold the non-Albertsons LLC gas stations to Tesoro. The gas stations make more sense when tied into a loyalty program, and since I strongly believe that the loyalty program is going away, it's likely that the gas stations are also going away. Fry's can successfully operate gas stations because it's parent Kroger has an entire convenience station division separate from its core grocery business that operates standalone convenience stores / gas stations that aren't tied into the grocery business. In additiona, Fry's parent Kroger has perfected the loyalty program.

4.) The Albertsons bannered stores that were not divested to Haagen that are in close proximity to Safeway bannered stores will eventually close when their leases expire if not sooner. The reason why is that the Albertsons bannered stores are non-union and the Safeway bannered stores are union and it's a lot easier to close a non-union store. I'd anticipate the following Albertsons stores to not survive into 2016. In fact, some of the duplicate stores are already closing in other markets, so I'm actually shocked that none of these are undergoing store closings as we speak:

- Surprise (at Loop 303 and Bell) (across the street from a Safeway and an under construction WINCO)
- Glendale (at Loop 101 and 59th Ave)(1 mile away from a Safeway at Loop 101 and 67th Ave)
- Scottsdale (at Loop 101 and Frank Lloyd Wright)(1 mile away from a Safeway at Thompson Park Pkwy and Frank Lloyd Wright)
- Gilbert / Queen Creek (Power Rd)(across the street from a Safeway)

I do anticipate that within 2-3 years the Albertsons banner will not exist in Arizona and that all of the stores will be bannered as Safeway.

I think Safeway and Albertsons can still operate stores under separate names profitably because consumers are loyal to the Albertsons and their private label brand items offers good value. Chuck E Cheese bought Peter Piper and they kept the chains separate because people are familiar with the each chains uniqueness of product and experience. I haven't noticed any changes at Peter Piper since the CEC buyout and I predict the same thing for Albertsons. Since most of the divestment of Albertsons to Haggen happened with stores in Southern California, management must think that metro Phoenix are loyal to Albertsons. Why do you think management decided against divesting the Albertsons stores you cited to Haggen?

[observer53]

Originally Posted by asufan

Not the Bashas near me. Covered parking, wiiide parking spaces, upscale decor inside including a nice sit down cafe type area with a flat screen TV. I like the experience there the best, it's the prices that keep me away.

You must live not far from me. Yes, that's a really nice store. But, they have a hard time competing on prices.

Hope Safeway doesn't lose its loyalty program, but I take advantage of it less than I do the one at Fry's. I've been going to the Safeway near me ever since it opened (at a different location) 20 some years ago. But, I recognize that it's more expensive, and am careful about what I buy there price wise. Most of my shopping is at Fry's.

[Bruce Jackpot]

Fry's tends to have the best regular prices and the best sales. And their Marketplace location at Tatum/Shea is the nicest grocery store in town. Sprout's has cheap produce prices and sales every week.

The other chains fall way behind when it comes to prices. Albertsons can have some good sales but Safeway's are just bad. Yet, they seem to do good business around here probably based on name recognition etc. But I could do without either.

But the heavy saturation of grocery stores helps the consumers. Whether we shop there or not, the simple presence increases competition which is great for customers.

[Ztonyg]

Originally Posted by Happs

I think Safeway and Albertsons can still operate stores under separate names profitably because consumers are loyal to the Albertsons and their private label brand items offers good value. Chuck E Cheese bought Peter Piper and they kept the chains separate because people are familiar with the each chains uniqueness of product and experience. I haven't noticed any changes at Peter Piper since the CEC buyout and I predict the same thing for Albertsons. Since most of the divestment of Albertsons to Haggen happened with stores in Southern California, management must think that metro Phoenix are loyal to Albertsons. Why do you think management decided against divesting the Albertsons stores you cited to Haggen?

Management didn't divest the stores I cited (as well as the Baseline and Elsworth store) because they couldn't find a buyer for any of these stores.

Haagen bought the store locations that it felt would be profitable. The remaining "duplicate" stores are ones that Haagen didn't want. There are several reasons why these stores may be undesirable. Proximity to a Fry's, Walmart, or Winco is probably a major factor. I believe in all of the following:

- Surprise (at Loop 303 and Bell) (across the street from a Safeway and an under construction WINCO)
- Glendale (at Loop 101 and 59th Ave)(1 mile away from a Safeway at Loop 101 and 67th Ave)
- Scottsdale (at Loop 101 and Frank Lloyd Wright)(1 mile away from a Safeway at Thompson Park Pkwy and Frank Lloyd Wright)
- Gilbert / Queen Creek (Power Rd)(across the street from a Safeway)
- Mesa (Baseline and Ellsworth)(Albertsons and Safeway across the street from one another)

That there is one and/or two and/or 3 of Fry's, Walmart, or Winco nearby.

Albertsons, Bashas', and Safeway all have trouble competing with Fry's, Walmart, and Winco.

The Haagen locations, for the most part, aren't very close to a Fry's, Walmart, or Winco or if they are it is only to 1 and not more than one.

As far as private label, I'm not sure if that has been decided upon, but Safeway and Albertsons will probably have a unified private label program within the next year or so.

Another thing to remember is that Fry's, Walmart, and Winco are the only 3 companies building and opening new stores. Albertson's hasn't opened a new store in Arizona since 2004 and has closed over 20 stores since then. Safeway hasn't opened a new store in Arizona since 2010 or so and has closed a handful of stores since then. Bashas' has been steadily closing stores since 2008.

[johnp292]

Regarding private label goods...

Safeway manufactures many of its own private label products. Albertsons buys their generics from SuperValu and has no manufacturing plants of its own.

Nuff said?