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Grocery shake-up raises bagful of questions
Sacramento Bee ^ | 2/19/6 | Jon Ortiz

Posted on 02/19/2006 3:39:51 PM PST by SmithL

Northern California's food fight is coming to a store near you.

It's already hit Mary Thomatos, a loyal Albertsons customer until the chain closed its J Street store near her east Sacramento home last summer.

Now the future of the other 25 Albertsons in the Sacramento region is in doubt after their parent company was sold last month. With Ralphs Supermarkets closing eight area stores soon, the grocery landscape is shifting so rapidly that by summer many consumers may no longer recognize their neighborhood store. Such change, those in the industry say, is something most of us should get used to.

Here's how the area's grocery chain scorecard looks as of now:

Ralphs: Gone as of early April.

Albertsons: In trouble. Changes, including store closures, are possible by summer as new owners take over.

Raley's, Nugget and Safeway: Surviving - but looking warily over their shoulders.

What does it mean for shoppers?

* Lower prices, as more of Wal-Mart's tires-to-toothpaste Supercenters open locally.

* Fewer traditional grocery stores, farther apart, with survivors retooling to compete.

* More niche stores with unique goods and atmosphere.

* Non-grocery businesses filling spaces vacated by departing food stores.

Thomatos said she's not a Wal-Mart fan and hopes the world's largest retailer doesn't exploit Albertsons' and Ralphs' woes to further elbow its way into the region.

"I hate to see Wal-Mart beat up on the little guy," she said.

But it's Wal-Mart Stores Inc., based in Bentonville, Ark., that is forcing most of the changes in the industry, locally and nationally. The company "always has its nose in the wind and smells opportunity when it's there," said Michael Banks, owner and partner of Las Vegas-based retail consultant Select Marketing LLC. "They're going to sense an opening and move in."

(Excerpt) Read more at sacbee.com ...


TOPICS: Business/Economy; Culture/Society; News/Current Events; US: California
KEYWORDS: albertsons; capitalism; grocery; grocerystores; kroger; ralphs; retail; safeway; walmart
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To: Politicalmom
I love both Wal-Mart and Sam's Club. I can't remember the exact prices on some of the stuff right now but your numbers seem close to what I see on other items I buy at Wal-Mart compared to Kroger. One price I think I can remember is on fresh cilantro. Wal-mart price is like 60 cents and Kroger is $1.40. Not only do you get a better price on the cilantro but it is also fresher at Wal-Mart. A few other things I would never buy at Kroger is pepperoni and tea. And if I did I would check the expiration date on it because they price stuff so high it sit on the shelves forever. The problem with Kroger and some other chains is that their normal everyday prices are much higher. You would have to be stupid to continue to buy stuff at the inflated prices some of these chain stores charge.
41 posted on 02/19/2006 5:31:10 PM PST by pepperhead (Kennedy's float, Mary Jo's don't!)
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To: jeremiah
If Albertsons kept the gallon of milk at around 2 bucks instead of 4, a lot less people would try elsewhere.

Our local Kroger doesn't over charge for milk. But that is the kind of thing they and others do on other items. That kind of stuff only makes people think twice about going shopping in their stores. Many of these stores and other people want to blame Wal-Mart for them having a hard time. But clearly some of the blame should rest on their shoulders.

42 posted on 02/19/2006 5:40:23 PM PST by pepperhead (Kennedy's float, Mary Jo's don't!)
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To: Dustbunny

We have a dual 8 cup cone filter coffee maker. Walmart didn't stock #2 cone coffee filters. Other than that and the heavy traffic I'm pleased about grocery shopping at Walmart. I usually save about 50 percent less than what it normally costs me at Frys.


43 posted on 02/19/2006 5:43:41 PM PST by marajade (Yes, I'm a SW freak!)
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To: Salvation

Safeway dairy sucks.


44 posted on 02/19/2006 5:45:06 PM PST by marajade (Yes, I'm a SW freak!)
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To: LibFreeOrDie

In the 1930's A&P had almost 16,000 stores in the US. They now have 427, in the US and Canada, with most of the stores in the Northeast.


45 posted on 02/19/2006 5:47:20 PM PST by Ed Condon (Wanted, newer tag line in good condition.)
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To: Salvation

I'll give you my reason. PRICES THAT ARE OUT OF SIGHT WHEN COMPARED TO OTHER STORES!


46 posted on 02/19/2006 5:52:59 PM PST by TaMoDee
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To: Larry Lucido
I know I'm spoiled rotten...I'm fortunate to have two Commissaries within a twenty mile radius. My monthly food bill (4 kids and an adult) is less than $400/month, and no, we don't starve to death. I did have the misfortune of shopping at Safeway over the holidays (they're open 24/7) and spent over $150 on a minuscule amount of groceries. I just hope the military doesn't turn over their commissaries to the large chains!!!
47 posted on 02/19/2006 5:58:05 PM PST by ebersole
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To: Ed Condon
Once upon a time ,the Great Atlantic and Pacific tea Company,(A&P) was the largest chain of stores in the USA. Guess we're all doomed to starve to death.

Like all chain retailers, every grocery chain since the first Kroger has been predicated on a single idea. Sometimes, that idea allows them to succeed; sometime it causes them to fail.

In the face of outmoded stores and stagnant sales, A&P's "idea" was to increase their profits by increasing the proportion of sales for their private label "house brand" -- at the expense of the national brands.

So, they gave Ann Page and the other A&P labels a disproportionate share of the shelf space and reduced the space allotted to, and the selection of, national brands.

As a consequence, A&P died even faster than they have otherwise succumbed.

Faced with the same problem -- outmoded stores and stagnant sales -- Winn-Dixie turned to private label as their savior, as well. Only their "idea" was to increase the profit by giving all their business to the lowest bidder -- irrespective of quality.

This strategy overlooks the fact that, at any given time, somebody can always have a lower price -- and that people buy products for their value, not their price. Which is to say, if it costs 10 cents less and it tastes like crap, you'll only save the dime once.

As a consequence, W-D keeps getting smaller and smaller. And, soon, Winn-Dixie will join A&P in that great warehouse in the sky...

48 posted on 02/19/2006 6:10:15 PM PST by okie01 (The Mainstream Media: IGNORANCE ON PARADE)
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To: Larry Lucido

In Maine, I notice in the towns with a Wal mart, the Walmart food parking side is always full while the Hannafords across the street is empty, even at prime shopping times. I predict it will close within three years.


49 posted on 02/19/2006 6:31:05 PM PST by Chickensoup (The water in the pot is getting warmer, froggies.The water in the pot is getting warmer, froggies.)
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To: SmithL
The leagcy of unions in California.

Once a giant, non union chain buries the union chains, smaller non-union, grocery cooperatives will pop up to satisfy the need of customers seeking a wider choice in branding and source.

50 posted on 02/19/2006 6:34:50 PM PST by Amerigomag
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To: Hot Tabasco

Does anyone here know of a chain that sells cases of canned goods. I am looking for a store that sells things like tomatoes and chicken broth by the case, not prepared foods.


51 posted on 02/19/2006 6:41:38 PM PST by Chickensoup (The water in the pot is getting warmer, froggies.The water in the pot is getting warmer, froggies.)
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To: taxesareforever

In 1970 the Federal Trade Commission and the State of Calif stopped Luckey stores from expanding and opening a series of Warehouse stores called Gemco - why? because they had gained too much market share. Today there are no Luckey Stores. All the stores that don't change with the times get hammered. For every Albertson's that closes a Whole Foods will open...maybe not every one, but many of them. People want choices.


52 posted on 02/19/2006 7:00:31 PM PST by q_an_a
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To: LibFreeOrDie

PS - Whole Foods does not allow unions either.


53 posted on 02/19/2006 7:02:36 PM PST by q_an_a
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To: q_an_a

People do want choices but sometimes there is no choice. Think Microsoft and your local cable tv company. Just a couple of examples.


54 posted on 02/19/2006 8:20:36 PM PST by taxesareforever (Government is running amuck)
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To: Chickensoup

Do you want it for home use or do you have a business.

I owned a child care center for a time in my life and could shop at the local warehouse.

I do think you could get a case of anything at Albertsons just by asking for it.

I know the local IGA (Most expensive prices, in my opinion) do have case sales twice a year.


55 posted on 02/19/2006 8:38:48 PM PST by Salvation (†With God all things are possible.†)
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To: LibFreeOrDie

Those guys really know how to make a buck off the hippydippy Organic scam.


56 posted on 02/19/2006 9:07:35 PM PST by Hank Rearden (Never allow anyone who could only get a government "job" attempt to tell you how to run your life.)
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To: Hank Rearden
Those guys really know how to make a buck off the hippydippy Organic scam.

No kidding! I've been to the one in Bedford, MA. Picked up a few things for lunch for two people. $75 !! I could have gone to a swank restaurant for that much!

57 posted on 02/19/2006 9:12:50 PM PST by LibFreeOrDie (L'Chaim!)
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To: Hank Rearden
Ya gotta love it.

I do occasionally shop there. Mostly because they have a really rocking selection of cheeses.

But if they think I'm going to be 12 bucks a pound for sirloin because it's 'organic' they got another thing coming and it ain't my money.

L

58 posted on 02/19/2006 9:20:18 PM PST by Lurker (In God I trust. Everybody else shows me their hands.)
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To: mewzilla

What Wal-Mart has begun doing the last few years on produce is tie up all the produce in a region with contracts and then when delivery is made they reject it if they don't need it or come up with a flimsy excuse to pay half price. I know this for a fact, they did it to us for the last time. We will no longer grow for Wal-Mart because we can't afford to give it away. They'll only get away with this for so long because the farmers they're screwing will stop growing for them or go broke.


59 posted on 02/19/2006 9:22:08 PM PST by tiki
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To: SmithL

Since California is the leading agricultural producing state in the USA then obviously they must have the lowest food prices.---;<}


60 posted on 02/19/2006 9:27:40 PM PST by Rockpile
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