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Tesco considers bid for Albertsons: paper
Reuters via MyWay.com ^ | September 18, 2005

Posted on 09/18/2005 10:32:04 AM PDT by RayChuang88

LONDON (Reuters) - Britain's largest retailer Tesco has sent an in-house team to the United States to consider a bid for Albertsons (ABS), the American grocery chain with 2,500 stores, the Business paper reported.

Earlier this month, Albertsons said it had hired investments bankers to explore its options and would consider putting itself up for sale, with a price tag of $7.6 billion, as it grapples with intense competition from Wal-Mart Stores (WMT).

Tesco, which reports half-year results this week, has yet to find a vehicle to enter the lucrative U.S. market and is using the team to identify takeover opportunities, the paper said.

(Excerpt) Read more at finance.myway.com ...


TOPICS: Business/Economy; News/Current Events; United Kingdom
KEYWORDS: albertsons; supermarkets; takeover; tesco
I'm not surprised this is happening because Albertsons has been suffering from competition by other supermarket chains, membership warehouses such as Costco, and the fast-growing Wal-Mart Supercenters. As such, they need to partner with a company that has a strong marketing clout to better compete in the extremely competitive supermarket world, a place where profits are measured only a few cents on the dollar.
1 posted on 09/18/2005 10:32:05 AM PDT by RayChuang88
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To: RayChuang88

We don't want Tesco coming to US. Trust me on this one.


2 posted on 09/18/2005 10:33:52 AM PDT by HapaxLegamenon
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To: RayChuang88

Albertsons anf like grocery store are suffering from old stuck-up suck ass, no service, high priced houty touty crap and thinking!


3 posted on 09/18/2005 10:37:00 AM PDT by zzen01
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To: RayChuang88

Even paying $2.50 a gallon of gas, I'll travel miles further to avoid shopping at my local Albertson's where false advertising and surly union workers lay in wait to ruin my day.


4 posted on 09/18/2005 10:38:01 AM PDT by battlegearboat
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To: zzen01
Funny you should mention that because in today's Sacramento Bee there is a long article about how Raley's is working to fend off the competition from other supermarket chains and especially the Wal-Mart Supercenters.

Believe me, when the Wal-Mart Supercenters in Sacramento County, CA starts opening (the first one in Citrus Heights, the second one in Elk Grove), they will take away a LOT of business from supermarkets nearby (well, unless you're a place like WinCo, which is essentially an oversized supermarket with enormous buying clout).

5 posted on 09/18/2005 10:42:38 AM PDT by RayChuang88
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Wow. Just goes to show how different peoples' experiences can be. I never heard of Albertsons until I came to Seattle. I don't have a car, they have an online shopping service - I've been a loyal customer for the past 4.5 years.

Whether it's the delivery service or the in-store staff, I've had nothing but positive experiences w/them. Even when I've had a problem, it's been resolved curteously and always in my favor.

Coming from the DC area, the prices didn't seem expensive to me, so I can't complain about those, either.


6 posted on 09/18/2005 11:15:42 AM PDT by radiohead (Proud member of the 'arrogant supermagt')
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To: zzen01
Albertsons anf like grocery store are suffering from old stuck-up suck ass, no service, high priced houty touty crap and thinking!

Yea, but they make the best fried chicken of any grocery store chain!

7 posted on 09/18/2005 11:18:29 AM PDT by Cowboy Bob (Liberalism cannot survive in a free and open society.)
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To: RayChuang88

I am proud to say that I got the entire Albertsons corporation sued when I was in high school; albeit by the union, but sued non-the-less. I was a 17-year-old kid doing electrician work on the lights (I was most assuredly not an electrician) and caught a store on fire. Man the union loved me. The main union guy came to my store to personally talk with me. Going thing I joined the Air Force shortly thereafter or I am sure I would have been out of a job.

To this day my parents get the evil eye when the are forced to make purchases at that store.

Sorry all, nothing official to add, I just wanted to add my Albertsons story.


8 posted on 09/18/2005 11:25:04 AM PDT by Rays_Dad
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To: RayChuang88

The one thing I've always been annoyed at with Albertsons was the high prices and on some items, especially their beef, low quality. If I want frozen dinners, chips and other snacks, I'll drive an extra mile to our nearby SuperWallyWorld. If I want beer or good, fresh meat, I'll drive up the street to a locally owned grocery store that gets by on name and an outstanding reputation.


9 posted on 09/18/2005 11:34:30 AM PDT by ABG(anybody but Gore) (Unleash Karl Rove!!!)
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To: RayChuang88

I can understand Albertson's shareholders wanting to cash out, but why would anyone want to buy into the US grocery market right now.

I was an Alberson's regular until they changed their marketing strategy a few years ago and raised prices across the board. Now Wal Mart gets my commodity business and Kroger gets a visit if I want meat or high end produce. Albertson's is the closest, but it needs a good cleaning. And I don't even bother to keep track of where the Safeway owned stores are.


10 posted on 09/18/2005 12:07:26 PM PDT by PAR35
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To: RayChuang88

Tesco helped Safeway/Vons set up their home delivery business, and may now be in competition with them. Interesting.


11 posted on 09/18/2005 12:28:04 PM PDT by Pylon (Remember boys, flies spread disease, so keep yours closed.)
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To: HapaxLegamenon

What's the problem with Tesco?


12 posted on 09/18/2005 1:39:50 PM PDT by Republican in CA
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