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The recent struggles of grocery stores is directly attributable to competitive pressures that...

The recent struggles of grocery stores is directly attributable to competitive pressures that didn't exist in the recent past. While big box retailers such as Wal-Mart and Target have successfully grabbed market share, chains have also felt pressure on both the high-end from Whole Foods Market and on the low-end from discount chains and warehouse clubs. Feeling the pain: SVU, SWY, KR.
Comments (5)
  • 777Saron
    , contributor
    Comments (5) | Send Message
     
    Simple stuff we have Haves and Have Nots. When I was with SVU I told them not to rid of The Lucky program.. SVU forecasted wrong in continued development of 2005 to construct these beautiful stores believing the booming economy would support them. The wrong analysis led to a stock downgrade and the resignation of the CEO. Kroger did better in promoting the Food 4 Less program offering the Have Nots a place to shop. Kroger is union and still reaps profits. Lucky in which I am a former employee was a great program and a perfect fix for SVU, I told SVU in 2008 to go more with the Lucky program and they did not heed, therefore they failed as a business by not adjusting to the needs of the people. The Albertson stores have increased most products 25% trying to recoup loss but is only scaring consumers away sucking up every last buck. Albertson is in big trouble and only with protection will they be able to transition back to the Lucky way. SVU has property in the wrong places where the rent is too high and will be forced to close doors and set up shop wisely as Kroger did. Wave of future in Consumer goods are either cheapest as 4 less, or Ritzy as Whole foods. No middle of the road will last in this economy.
    13 Jul 2012, 07:57 AM Reply Like
  • kmi
    , contributor
    Comments (3984) | Send Message
     
    Overbuilding isnt helping either.

     

    Retail real estate in the US is dominated by shopping centers with franchises, and the cream of the crop are the grocery anchored ones, which are highest in demand. This encourages overbuilding/overcapacity for grocery anchored retail.

     

    Retail in general is overbuilt in many if not most, areas, especially since the real estate boom.
    13 Jul 2012, 09:32 AM Reply Like
  • bzzzzz
    , contributor
    Comment (1) | Send Message
     
    Saron is right to say KR has something for the have nots, some stores are in dicey neighborhoods where there isn't much competition. Also, there is "Fresh Express" upscale stores that seem to drive a lot a business. It's the cookie cutter models that seem the worst; does every office depot need to be by a mall?? Are rude salespeople really going to drive BBY's profits?? Until WMT and Trader Joe's get a butcher and some produce that's less than a month old there will be space for well run traditional grocers.
    13 Jul 2012, 10:07 AM Reply Like
  • outcastsearcher
    , contributor
    Comments (1370) | Send Message
     
    I used to shop at Best Buy a lot before the internet brought so many terrific online companies to my PC. I can't think of ANYTHING superior about a Best Buy now. Their website is terrible. Their stores are killing them - even without rude salespeople.

     

    Ironically, SVU's "Save-a-lot" stores have very friendly staff, but are otherwise inferior across the board. I buy some of their deli stuff (treats) because they're very close to my house, but staples - forget it (overpriced and poor selection). And their deli meals are so overpriced I don't see how they sell.

     

    Assuming this is somewhat typical of the SVU branded stores, I don't see them having ANY real chance to make it.
    14 Jul 2012, 05:02 AM Reply Like
  • Rogue
    , contributor
    Comments (73) | Send Message
     
    Short interest (latest #s):
    This is what destroys public companies
    SVU 48.2%
    SWY 24.7%

     

    KR 2.4%
    WFM 3.7%
    WMT 1.3%
    13 Jul 2012, 10:15 AM Reply Like
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