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Why aren’t there more national grocery store chains?
Posted on 12/7/23 at 9:01 pm
Posted on 12/7/23 at 9:01 pm
Really you have Walmart (which isn’t a true grocery), the warehouse clubs, Kroger (which owns a bunch of nameplates) and Albertsons (which owns a bunch of nameplates),
Grocery stores are low margin, high volume. Industries like that benefit from consolidation.
Yet the grocery ecosystem is mainly regional and local.
Ate there reasons for this? Trade concerns? Logistics issues? Gentlemen’s agreements?
Grocery stores are low margin, high volume. Industries like that benefit from consolidation.
Yet the grocery ecosystem is mainly regional and local.
Ate there reasons for this? Trade concerns? Logistics issues? Gentlemen’s agreements?
31
Posted on 12/7/23 at 9:04 pm to LSUFanHouston
quote:Safeway
Walmart... Kroger... and Albertsons
Posted on 12/7/23 at 9:04 pm to LSUFanHouston
Posted on 12/7/23 at 9:06 pm to Kafka
Isn’t Safeway, Krogers, and Albertsons all the same company?
Posted on 12/7/23 at 9:07 pm to LSUFanHouston
Whole Foods
Trader Joe's
Trader Joe's
Posted on 12/7/23 at 9:07 pm to LSUFanHouston
Gotta be harder to start operating outside the region where your distribution exists. I think companies just buy regional grocery chains and continue to operate them as is. Look at who owns which chains.
LINK
LINK
Posted on 12/7/23 at 9:08 pm to GreenRockTiger
quote:
Isn’t Safeway, Krogers, and Albertsons all the same company?
Kroger and Albertsons are the same, Safeway is a competitor
Posted on 12/7/23 at 9:08 pm to LSUFanHouston
quote:
Yet the grocery ecosystem is mainly regional and local.
I would imagine the regional makes more sense because of the logistics of dealing with perishables.
Posted on 12/7/23 at 9:10 pm to LSUFanHouston
quote:
Really you have Walmart (which isn’t a true grocery), the warehouse clubs, Kroger (which owns a bunch of nameplates) and Albertsons (which owns a bunch of nameplates),
Ummmmm, Kroger just announced the purchase of the Albertson’s brands….the sale closes in early 2024.
Posted on 12/7/23 at 9:11 pm to Flynn2Byrd
quote:
Kroger and Albertsons are the same
That merger hasn't been approved yet by the FTC.
Posted on 12/7/23 at 9:12 pm to LSUFanHouston
Grocery is hard. Profit is a penny on the dollar. Walmart is no surprise because it can offset groceries with the other goods in its stores.
Costco and Sams really make it hard for national chains to compete.
The there is unionization.
Costco and Sams really make it hard for national chains to compete.
The there is unionization.
Posted on 12/7/23 at 9:12 pm to LSUFanHouston
IDK the answer but I hope HEB doesn't do anything foolish.
Posted on 12/7/23 at 9:13 pm to Flynn2Byrd
quote:
Kroger and Albertsons are the same, Safeway is a competitor
Albertsons and Safeway are the same. Kroger is a competitor.
Didn't the FTC put a stop to the Kroger/Alberson's merger?
This post was edited on 12/7/23 at 9:14 pm
Posted on 12/7/23 at 9:13 pm to LSUFanHouston
quote:
Yet the grocery ecosystem is mainly regional and local.
Ate there reasons for this? Trade concerns? Logistics issues? Gentlemen’s agreements?
I imagine supply chain and logistics have a lot to do with it, but IDK
Posted on 12/7/23 at 9:17 pm to LSUFanHouston
quote:
Yet the grocery ecosystem is mainly regional and local.
Do you even DG Market, bro???
Posted on 12/7/23 at 9:17 pm to LSUFanHouston
There’s some tribalism in the grocery business. It’s harder for national chains to keep regional tastes a priority. See Rouses and HEB. They just know the area better. Walmarks is a different game and just panders to poors. It’s barely a step up from dollar general.
Posted on 12/7/23 at 9:17 pm to stout
quote:This, and customers' brand familiarity / loyalty considerations I would imagine...
the logistics of dealing with perishables
If the referenced regional grocery chains are public companies, major institutional investors may hold substantial equity positions in and profit from multiple grocery chains regardless of the brand...
Posted on 12/7/23 at 9:19 pm to LSUFanHouston
From what I understand, because places like Walmart price them out of business
Posted on 12/7/23 at 9:21 pm to Kafka
quote:
Safeway
Safeway also maintains regional brands that they’ve taken over, like Randall’s in Houston. So their reach is further than it looks.
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