Alberstons chain leaving Jacksonville area

[bobliocatt]

Albertsons leaving Jacksonville area

7 stores sold to former Winn-Dixie executive

By CHRISTOPHER CALNAN, The Times-Union

Albertsons Inc. said Wednesday it's selling all seven Jacksonville-area stores so it can invest more money in areas where the grocery company can dominate the market

Jacksonville businessman Rob Rowe, a 42-year-old former executive with Albertsons and Winn-Dixie Stores Inc., plans to buy the stores to start an independent chain of stores called Rowe's Supermarkets LLC, his spokesman said.

Boise, Idaho-based Albertsons said it plans to sell the stores to Rowe's Enterprises LLC in mid-July. Albertsons operates five stores in Jacksonville, and one in Orange Park and St. Augustine.

Albertsons spokesman Walt Rubel said 560 to 700 employees would be affected by the deal. He declined to reveal the sale price and the reason Jacksonville is the only market in Florida in which Albertsons is withdrawing.

"We really don't want to get into the whys and the wherefores," Rubel said.

From 1997 to 2004, Albertsons market share in Jacksonville dropped from 7.9 percent to 4.2 percent, according to the Shelby Report, a grocery industry newsletter.

Full article:

http://www.jacksonville.com/tu-online/stor..._18776558.shtml

[La Florida]

Good move by Albertsons...i mean who shops there anyway? Hopefully Rowes would consider moving in San Marco to the proposed kings avenue station. The city should jump on this asap.

[Metro242]

This isn't really all that suprising to me. I don't know anyone who says "I'm going grocery shopping, do you want anything from Albertsons?". It is like Food Lion where it really doesn't have a niche. People are loyal to Publix here for the most part because of the clean, nice setting and close proximity to just about everyone. Others are loyal to Winn-Dixie because of their low prices and membership discounts. I can't really think of any reason in particular that someone would be compelled to be loyal to Albertsons.

[bobliocatt]

So does anyone think Rowe's has a decent chance for survival?

[vicupstate]

So does anyone think Rowe's has a decent chance for survival?

<{POST_SNAPBACK}>

It's difficult to see how unless they are planning to be a niche/specialty grocery. They would not have the volume to compete against more traditional stores. Is there another grocery chain in Jax besides Publix and Winn Dixie left? I would expect to see Walmart try to fill the void left by Albertson's.

[afh]

So does anyone think Rowe's has a decent chance for survival?

<{POST_SNAPBACK}>

Not if it doesn't create a niche for itself. Something like Trader Joe's. The problem is Walmart's Supercenter strategy. Walmart's new SC strategy is geared upon putting SCs 5 miles apart instead of the current 10 miles apart that Walmart currently uses. This is the model that supermarket chains currently use. The problem is that they never had Walmart move into their territory using their strategy against them. You can see that happening with the conversion of the Walmart on 103rd to a SC and I see that here in the Phoenix (Chandler) area where I live. When I moved here in Sept there was only one (Gilbert) Super Walmart and it was 10 miles from my place. Within the last 6 months Walmart is turing one regular Walmart that is 10 miles (Tempe) from me into a SC and they're going to build a new SC 5 (Chandler) miles from me.

Eventually, the Albertsons, Krogers, Winn-Dixies, Fry's and Safeways of the world will have to change the way they compete. B/c they cannot touch Walmart in terms of the scale of Walmart's supply chain which keeps costs low. ICSC.org under the publications tab/Shopping Centers Today link has a good article on how these stores are trying to compete with Walmart. The stores I mentioned are safe for now, but as you see with Albertson's moving out of the Jacksonville market, Walmart is beginning to have an effect. Look at Winn-Dixie. It is especially telling in the Jacksonville market b/c what Walmart is doing in the market is what they're just starting to do in California, Arizona, Texas, the Midwest and the rest of Florida. Publix is next! They just don't know it yet. That's why they're trying to do things with the interior of their stores.

[bobliocatt]

Unlike the others, I think Publix is doing things ranging from building smaller urban markets and gas stations to establishing hispanic oriented grocery stores, to carve out a niche for itself. Just as recent as a year ago, a Publix official stated that Walmart isn't its biggest competitor. Their main worry is the vast number of restaurants continuing to pop up in Florida and the residents willing to spend money dining out, instead of buying groceries.

[Urban_Legend]

^Publix has ascended the grocery throne, IMO. They're also planning on opening a few "Greenwise Markets" in South Florida, which will cater to the organic craze, that's been boosting stores like Whole Foods.

And I don't like Walmart.

[Metro242]

I don't see how Wal-Mart could ever corner Publix out of the market here. The new style Publixes (kind of like the one on Southside opposite Tinseltown, only bigger) are even more attractive than the older ones, and brand loyalty is so strong. I hate, hate, HATE Wal-Mart and will avoid it at all costs. Grocery shopping shouldn't involve the hassle of parking a mile out in a congested Wal-Mart lot, fighting shoulder to shoulder with a thousand of the most obnoxious people on the face of the earth and then waiting in line for 20 minutes, only to walk a half mile back to your car and I can't see how that many people would go through that hassle just to save two cents on a banana at Wal-Mart.

[RiversideGator]

Entering a Walmart for me is one of the most loathesome experiences possible. I HATE Walmart and would much rather pay more than visit that zoo.

[afh]

Hey, all of y'all can hate Walmart, but speaking from a purely business perspective, you've got to respect how they can come in and cannibalize a market. Sure Publix has ascended to the top, but outside of the new concepts that they're opening, they too will become Walmart's next victim. Lakelander mentioned that Publix said Walmart isn't their competion, but it doesn't matter what they say. If Publix sells groceries and Walmart does, then Walmart is their competition. Publix is as afraid of Walmart as every other supermarket owner is. Scale of economy is what propels Walmart and hurts the others.

You don't have to love them, just respect Walmart's game. Walmart also has those self-checkout counter and plenty of them which cuts down on your time in the store.

[jjoshjl]

I have to agree with AFH...

I may hate going into walmart, and there are ceartainly some items in publix that walmart doesnt have, but all in all, Walmart is providing a for a demand create by us.... the consumers. Slap walmart all you want, but, they do tend to have the best prices, the do tend to have a fairly good selection. If Walmart wasn't providing what WE were asking for, there wouldnt be so many. We can't critisize a company or having an extremely good business plan. As I said, I tend to dislike the crownds at walmart, and tend to dislike the employees even more, but they do provide goods and services in a fairley convenient manner...

To those that complain about a Walmart Monopoly...

though I cant remember what economist said this but here is a rough quote...

"Is a monopoly bad when it actualy benifits the consumer, ie lower prices and better selection?"

Coment made by an economist on NPR when asked about walmarts place in US economics...

[RiversideGator]

I agree Walmart is a highly successful and profitable business model, I just hate to shop in their low rent stores with their unkempt (for the most part) customers. They have the freedom to do what they want to as I have the freedom to not shop there.

[bobliocatt]

Hey, all of y'all can hate Walmart, but speaking from a purely business perspective, you've got to respect how they can come in and cannibalize a market.  Sure Publix has ascended to the top, but outside of the new concepts that they're opening, they too will become Walmart's next victim.  Lakelander mentioned that Publix said Walmart isn't their competion, but it doesn't matter what they say.  If Publix sells groceries and Walmart does, then Walmart is their competition.  Publix is as afraid of Walmart as every other supermarket owner is.  Scale of economy is what propels Walmart and hurts the others.

You don't have to love them, just respect Walmart's game.  Walmart also has those self-checkout counter and plenty of them which cuts down on your time in the store.

<{POST_SNAPBACK}>

Nobody ever stated they wern't competitors, I said, according to Publix officials, at the Lakeland headquarters, Walmart isn't their biggest worry, Floridians eating out more and cooking less is. With that said, there will always be a large segment of the grocery market that likes to get in and quickly get out of the store. Walmart's super centers are flat out too large to completely kill off all traditional grocers. Publix will be able to survive and prosper in the same way the Target does today.

[afh]

Nobody ever stated they wern't competitors, I said, according to Publix officials, at the Lakeland headquarters, Walmart isn't their biggest worry, Floridians eating out more and cooking less is.  With that said, there will always be a large segment of the grocery market that likes to get in and quickly get out of the store.  Walmart's super centers are flat out too large to completely kill off all traditional grocers.  Publix will be able to survive and prosper in the same way the Target does today.

<{POST_SNAPBACK}>

Well, I should have stated that they said Walmart isn't their biggest worry. I think they are worried, but they're not going to come out say that. They would be foolish if they weren't worried. When the number 2 US supermarket chain pulls completely out of a competitive market such as Jacksonville, a chain like Publix, which doesn't have the scale that Albertsons has, should be worried.

I agree, Publix and the others will be able to survive b/c there will be people who don't want to go into Walmart and they want to get out quickly as you said. They just won't have the market share that they have today. Also, Target can't do what Walmart does b/c they don't have the massive supply chain network that Walmart does. That's why Target and the other supermarkets are typically higher with comparable products than Walmart. The article I mentioned before describes how the supermarket chains are trying to reduce prices to compete with Walmart, but they are reluctant to do so. They can't absorb the type of price decreases that a competitor like Walmart demands and stay in business at the same time. That is why they're trying to find their niche.

[bobliocatt]

Here's a couple of quotes from the article:

From 1997 to 2004, Albertsons market share in Jacksonville dropped from 7.9 percent to 4.2 percent, according to the Shelby Report, a grocery industry newsletter

I wonder has Publix's market share increased or decreased over the same period. As of right now, I'm assuming its expanded like Walmart, at the expense of Albertsons, Winn-Dixie and Food Lion, because they still have new stores popping up all over the place.

Shelby Report editor Chuck Gilmer said the move isn't unusual for Albertsons, which closed all of its stores in the Houston area last year.

Closing the Jacksonville stores "just sounds like that same philosophy on a smaller scale," he said. "The competition is tough and with competition like Publix and Wal-Mart you've got to be careful abut where you apply your efforts and assets."

I guess the real question is there enough room in the market for two big dogs to survive? Publix will be alright as long as it keeps up its quality levels of customer service and convenience. These are two areas Wal-mart will never be able to beat it at. However, I don't know what this means for the smaller guys like Rowe's.

[gingersnap]

So does anyone think Rowe's has a decent chance for survival?

After just over 2 months in operation, Rowe's has failed in every concept promised. There is no organization, leadership, training, the store's are in disarray and are a huge disapointment. One of the stores smells like raw sewage and I couldn't even shop there because of the smell. I will never shop there again. Even Albertson's was better than Rowe's.

[arcgator]

After just over 2 months in operation, Rowe's has failed in every concept promised. There is no organization, leadership, training, the store's are in disarray and are a huge disapointment. One of the stores smells like raw sewage and I couldn't even shop there because of the smell. I will never shop there again. Even Albertson's was better than Rowe's.

interesting....I've been to the one at beach and university and found the produce dept to be one of the best in the city. Never had a problem there with service or anything.

[Captain Obvious]

I've still never been inside a Rowes. None of his stores are really near anywhere I ever go.

[scongro]

I got a keg there for the Jags-Bengals games - I found the beer to be nice and cold.

This is the extent of my Rowe's Experience

[RiversideGator]

Was that post a Winn-Dixie hit job??