Kroger Buying Shaw's?

Since: May 07

Stockbridge Mass

#143 Dec 23, 2010
will wrote:
It's an exaggeration to say A&P has NOTHING in DC; they have a Super Fresh. And of course they have still more Super Fresh locations in MD, DE, PA and NJ. Whether or not that makes them a ripe target for Kroger is something only known in Cincinnati at this point. Maybe A&P can modify their unfavorable distribution and logistics contracts to make the stores more attractive to a buyer. Ahold is the most obvious buyer, as they're on record as saying they're on the acquisition trail in the US and they do plenty of business with C&S already. Their problem is market overlap in the NYC area which would lead to quite a few divestments. And not everything Ahold does turns to gold; witness their failures in ME and VT and their money-losing acquisiton of Ukrop's.
I need to correct you on a few things first of all, the Ukrope stors will make money once Giant of Maryland takes over their operation ,and second the Super Fresh stores you mention are all run by C&S.As of late nothing Ahold does turns to gold and it's becuase of Carl Schlickler and Robin Michele...she's gone now if we can just get rid of Carl,problem is he is in bed with C&S and is throwing business at them left and right.
will

Portland, ME

#144 Dec 23, 2010
It was Giant-Carlisle that took over the former Ukrop's stores. Giant-Carlisle, as in Pennsylvania, and not Giant-Landover, as in Maryland. And they have been fully converted to the Martin's banner and are losing money under Giant-Carlisle management; it was stated clearly in Ahold's latest earnings report. Of course Ahold is trying to spin positive comps, but the fact remains that the former Ukrop's lost $11 million and sank overall earnings. Facts are inconvenient things sometimes.

http://supermarketnews.com/retail_financial/A...

And it's a fallacy to suggest that C&S is "running" any stores owned by Ahold USA or GAP; they merely distribute product to the stores. Both chains decided to outsource their distribution functions to C&S rather than self-distribute. Some chains have made this business model work; some, like A&P, have not.

Since: May 07

Stockbridge Mass

#145 Dec 24, 2010
will wrote:
It was Giant-Carlisle that took over the former Ukrop's stores. Giant-Carlisle, as in Pennsylvania, and not Giant-Landover, as in Maryland. And they have been fully converted to the Martin's banner and are losing money under Giant-Carlisle management; it was stated clearly in Ahold's latest earnings report. Of course Ahold is trying to spin positive comps, but the fact remains that the former Ukrop's lost $11 million and sank overall earnings. Facts are inconvenient things sometimes.
http://supermarketnews.com/retail_financial/A...
And it's a fallacy to suggest that C&S is "running" any stores owned by Ahold USA or GAP; they merely distribute product to the stores. Both chains decided to outsource their distribution functions to C&S rather than self-distribute. Some chains have made this business model work; some, like A&P, have not.
1) Giant of Maryland will take over the Martins(Ukrope) Feb 1st since Carlisle made such a mess.
2)People in Richmond don't know Martin's...they know Giant.

3)C&S is indeed running all the Super fresh stores in the DC area also the Safeway Warehouse, and a few of the Pathmark stores in NY and NJ.
4)...the "business model " as you call it has been an epic failure in the the eyes og Giant and A+P and very well might cause S+S /Giant to go under....Carl Schlickler is running the company into the ground and has C&S in his pocket.
Tim

Danvers, MA

#146 Dec 29, 2010
So SVU cant sell Shaws, What now?
Lisa

Concord, NH

#147 Dec 29, 2010
That's a good question, Tim. I wonder what will happen too. I haven't seen the holiday crowds at Shaws since before Christmas. I also note that Shaws isn't offering a great deal of good deals for the holidays either. If SVU is trying to kill the Shaws brand, they're doing a good job.
will

Portland, ME

#148 Dec 31, 2010
Giantone wrote:
<quoted text>
1) Giant of Maryland will take over the Martins(Ukrope) Feb 1st since Carlisle made such a mess.
2)People in Richmond don't know Martin's...they know Giant.
3)C&S is indeed running all the Super fresh stores in the DC area also the Safeway Warehouse, and a few of the Pathmark stores in NY and NJ.
4)...the "business model " as you call it has been an epic failure in the the eyes og Giant and A+P and very well might cause S+S /Giant to go under....Carl Schlickler is running the company into the ground and has C&S in his pocket.
I doubt Giant-Landover will take over the former Ukrop's stores as they shuttered their failing Richmond division almost 30 years ago. Sure, people knew Giant, but obviously they didn't shop there in sufficient numbers for them to remain in business there.

http://www.answers.com/topic/giant-food-inc

Furthermore, Ahold USA specifically selected Giant-Carlisle to run the former Ukrop's stores because they were a better cultural fit than Giant-Landover.

http://supermarketnews.com/retail_financial/n...

Having looked at the former Ukrop's financials in greater detail, Ahold USA's decision seems to make sense. Although they lost $11 in the most recent quarter, they lost $20M in the previous quarter, indicating that Giant-Carlisle is making steady progress bringing the new Martin's up to speed, although Ahold's CEO indicated that the losses will likely continue for another year.

Ahold USA is thriving overall and is in acquisition mode according to Ahold's CEO:

http://supermarketnews.com/retail_financial/u...

As for C&S, they have told officials in New Jersey that they may close all of their warehouses in that state and lay off 1,100 workers:

http://www.nj.com/business/index.ssf/2010/12/...

Since: May 07

Stockbridge Mass

#149 Jan 2, 2011
will wrote:
<quoted text>
I doubt Giant-Landover will take over the former Ukrop's stores as they shuttered their failing Richmond division almost 30 years ago. Sure, people knew Giant, but obviously they didn't shop there in sufficient numbers for them to remain in business there.
http://www.answers.com/topic/giant-food-inc
Furthermore, Ahold USA specifically selected Giant-Carlisle to run the former Ukrop's stores because they were a better cultural fit than Giant-Landover.
http://supermarketnews.com/retail_financial/n...
Having looked at the former Ukrop's financials in greater detail, Ahold USA's decision seems to make sense. Although they lost $11 in the most recent quarter, they lost $20M in the previous quarter, indicating that Giant-Carlisle is making steady progress bringing the new Martin's up to speed, although Ahold's CEO indicated that the losses will likely continue for another year.
Ahold USA is thriving overall and is in acquisition mode according to Ahold's CEO:
http://supermarketnews.com/retail_financial/u...
As for C&S, they have told officials in New Jersey that they may close all of their warehouses in that state and lay off 1,100 workers:
http://www.nj.com/business/index.ssf/2010/12/...
Your links are old.very old.GC went into Richmond to keep the Unions out, same with C&S in NJ. Giant of Landover has been going to Richmond for decades....yes they did close store but not all and that was in part a deal made with the Ukrope family it self as Giant supplied them with assorted things as ice cream and soda and ice.Now if you indeed look over your links you will see it is Giant/Landove that serves more stores in VA. and closer to the Richmand stores then GC.Giant/Landover was at least at the time self saficent untill Schlickler came in ...now he is turning all operstions overto C&S just as he did to Giant-Carlisle.Look at how well all the stores in NJ are doing after being run by C&S.....Pathmark all but gone same with Buyrite,Shoprite and now A+P are in bankruptcy.C&S....runs your company into the ground.
Tim

Danvers, MA

#150 Jan 3, 2011
What have people heard about the big meeting tomorrow about new time off rules?
will

Jefferson, ME

#151 Jan 3, 2011
In amongst the jokester stock analysts trying to make a name for themselves by rating Supervalu stock a "Buy" (yeah, right) here's this fascinating (and sobering) article about Shaw's. This guy knows his stuff and doesn't hesitate to state the obvious.

http://www.glgroup.com/News/Whats-Next-for-Sh...
gameboy

Andover, MA

#152 Jan 4, 2011
News Flash
Associate meetings in Revere and Stoneham Tomorrow.
I wonder what for??? NO SURPRISES HERE
Also heard 3 other stores but do not know which ones.
Anyone else??
Who is next???
gameboy

Andover, MA

#153 Jan 4, 2011
The 3 other stores are in Rhode Island.
As said before, as leases are up in underperforming stores.........
will

Portland, ME

#154 Jan 4, 2011
This is death by attrition. As the store base shrinks, the chain's overall viability shrinks as well, as does its value to a would-be buyer. Less dollar volume overall leads to less bargaining power with vendors relative to Shaw's competitors. My thoughts are with the associates about to be affected by Supervalu's ineptitude once again.

Since: May 07

Stockbridge Mass

#155 Jan 5, 2011
will wrote:
This is death by attrition. As the store base shrinks, the chain's overall viability shrinks as well, as does its value to a would-be buyer. Less dollar volume overall leads to less bargaining power with vendors relative to Shaw's competitors. My thoughts are with the associates about to be affected by Supervalu's ineptitude once again.
A+P is in the same boat.
will

Portland, ME

#156 Jan 5, 2011
GAP is in bankruptcy and has more options regarding its restructuring than SVU. Herkert is on the treadmill of paying down SVU's enormous debt with free cash flow and can't put any money into the stores. That's why Shaw's can't compete and is in a death spiral.

SVU is due to report Q3 results on the 11th, which should indicate whether the turnaround strategy is finally gaining traction (not likely.) Shaw's should continue to show negative comps; whether they'll be the disastrous 11% of Q2 remains to be seen. The analysts should press Herkert about what his game plan is for Shaw's; after all, the cat's out of the bag regarding the auction.
will

Portland, ME

#157 Jan 5, 2011
Karen Short of BMO downgraded Supervalu, Kroger and Safeway saying that inflation will negatively impact margins and threaten price investments. CPG manufacturers are increasingly turning to package downsizing to maintain retail price points, but retailers eventually have to pass on higher costs or see profits vanish. Wages aren't keeping pace with rising energy and food prices, which puts weaker conventional supermarkets in a squeeze between better-run conventional chains like Hannaford and Market Basket, hard discounters like ALDI, price-oriented general merchandisers like Walmart and upscale grocers like Whole Foods. It's going to get worse before it gets better, alas.

http://supermarketnews.com/retail_financial/g...

gameboy, any news out of those associate meetings?
will

Portland, ME

#158 Jan 5, 2011
It's official: Shaw's to close five stores

http://www.bostonherald.com/business/general/...
Frank

San Mateo, CA

#159 Jan 5, 2011
The liquidation continues.
will

Portland, ME

#160 Jan 5, 2011
There's an excellent discussion of Shaw's at this WSJ blog; Marc's comments are particularly illustrative. He contends that Shaw's problems started during Sainsbury's ownership of the chain, which I wouldn't have guessed from outward appearances.

http://blogs.wsj.com/deals/2010/12/20/breakin...
gameboy

Andover, MA

#161 Jan 5, 2011
That was an excellent discussion on the state of Shaws.
I could'nt agree with him more.
I have 32 years with Shaws/Star and all my experience means NOTHING. Just do what it says in there STUPID PLAYBOOKS.No clue at all.
will

Portland, ME

#162 Jan 5, 2011
gameboy, did the rot really set in at Shaw's while Sainsbury's owned it? It looked to me like they were highly profitable and expanding rapidly. What promises, exactly, did they break? Was it the warehouse closures in Norwood and East Bridgewater, or was it more than that?

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