Krogers/Albertson’s Merger

[Reefmonkey]

I’ll be curious to see if this merger goes through how it will affect the market here in Houston. With Randall’s getting worse and worse, and Fiesta contracted and not expanding for years, Kroger’s is the only real local competition to HEB for a traditional grocery store. I know people love HEB, but between their terrible parking lots and their sheer size and deliberately  labyrinthine layout (not to mention they’re always restocking, even during peak shopping hours, partially blocking aisles with large trolleys of merchandise to be shelved), they’re not ideal for a quick run to the grocery store, while Kroger’s especially the older ones, still are good for popping in and out of. 
 

The Safeway/Albertson’s saga in Houston always leaves me shaking my head. Safeway failed in the Houston market back in the 80s, and Albertson’s in the early 2000s, when Randall’s was still strong. So what does Safeway do, having failed in the Houston market because they were never nearly as good as Randall’s, they buy Randall’s and proceed to run it into the ground, with poorer service, reduced selection and always running out of things, but still keeping their prices high. Then Albertson’s who also failed in the Houston market because of their poor shopping experience and other issues, buys Safeway, getting access back to the Houston market they already failed in before, and then proceeds to further drive Randall’s into the ground and worsen its stocking situation by closing the Houston area distribution center, and more and more Randall’s locations shutter. Now Albertson’s will get to ruin all the Krogers in the area.  

Edited December 1, 2022 by Reefmonkey

[mkultra25]

13 hours ago, Reefmonkey said:

Now Albertson’s will get to ruin all the Krogers in the area.  

It's been a while since I first read about these two companies combining to create a grocery colossus, but I distinctly got the impression that although it was being billed as a merger, it appeared to be more of an acquisition by Kroger. I guess whatever happens will depend on which company's culture emerges as the dominant one in the new entity, and which one gets absorbed and diluted. 

[Houston19514]

9 hours ago, mkultra25 said:

It's been a while since I first read about these two companies combining to create a grocery colossus, but I distinctly got the impression that although it was being billed as a merger, it appeared to be more of an acquisition by Kroger. I guess whatever happens will depend on which company's culture emerges as the dominant one in the new entity, and which one gets absorbed and diluted. 

Kroger is definitely buying Albertson’s.  The purchase is being structured as a merger, but that doesn’t change the fact that Kroger is the purchaser and will be running the combined companies.

23 hours ago, Reefmonkey said:

I’ll be curious to see if this merger goes through how it will affect the market here in Houston. With Randall’s getting worse and worse, and Fiesta contracted and not expanding for years, Kroger’s is the only real local competition to HEB for a traditional grocery store. I know people love HEB, but between their terrible parking lots and their sheer size and deliberately  labyrinthine layout (not to mention they’re always restocking, even during peak shopping hours, partially blocking aisles with large trolleys of merchandise to be shelved), they’re not ideal for a quick run to the grocery store, while Kroger’s especially the older ones, still are good for popping in and out of. 
 

The Safeway/Albertson’s saga in Houston always leaves me shaking my head. Safeway failed in the Houston market back in the 80s, and Albertson’s in the early 2000s, when Randall’s was still strong. So what does Safeway do, having failed in the Houston market because they were never nearly as good as Randall’s, they buy Randall’s and proceed to run it into the ground, with poorer service, reduced selection and always running out of things, but still keeping their prices high. Then Albertson’s who also failed in the Houston market because of their poor shopping experience and other issues, buys Safeway, getting access back to the Houston market they already failed in before, and then proceeds to further drive Randall’s into the ground and worsen its stocking situation by closing the Houston area distribution center, and more and more Randall’s locations shutter. Now Albertson’s will get to ruin all the Krogers in the area.  

So true.  And they’ve done the same rinse and repeat in other cities too.  The good news is: Albertsons won’t be in charge of the combined company; Kroger will.

[Reefmonkey]

Well, if it's Kroger buying Albertson's, I guess that makes me feel somewhat better about it.

[brucesw]

Do any of the Kroger banners compete against each other in the same market?  I can't see the Randall's name surviving.  Maybe some will become Kroger, some will be closed and sold off.  Most likely bye-bye Randall's Meyer Park (caddie-corner from Kroger S. Post Oak). 

Another factor in the grocery business:  Kroger launches grocery delivery in San Antonio, taking on hometown grocer H-E-B, Walmart (msn.com).  Kroger has been in SA before but abandoned the market.  There will be no physical markets, only delivery.

During the course of discussion on the above link it was noted Kroger operates in South and Central Florida in the same manner and has for several years.  There are no stores for hundreds of miles according to one poster.

And don't forget WM.  Main competition for HEB in SA (Austin?, South Texas?).  And WM Neighborhood Markets are smaller stores, so you don't have to deal with the big box SWMs.

Edited December 4, 2022 by brucesw

[mollusk]

On 12/1/2022 at 7:02 AM, Reefmonkey said:

The Safeway/Albertson’s saga in Houston always leaves me shaking my head. Safeway failed in the Houston market back in the 80s, and Albertson’s in the early 2000s, when Randall’s was still strong. So what does Safeway do, having failed in the Houston market because they were never nearly as good as Randall’s, they buy Randall’s and proceed to run it into the ground, with poorer service, reduced selection and always running out of things, but still keeping their prices high. Then Albertson’s who also failed in the Houston market because of their poor shopping experience and other issues, buys Safeway, getting access back to the Houston market they already failed in before, and then proceeds to further drive Randall’s into the ground and worsen its stocking situation by closing the Houston area distribution center, and more and more Randall’s locations shutter. Now Albertson’s will get to ruin all the Krogers in the area.  

Don't forget, after Safeway did their 80s swoon they picked up the former Weingarten's locations and created the Apple Tree banner (apparently at least someone in their corporate chain realized even then that around here the Safeway name represents hostile service, high prices, crashing, and burning).  Nobody was fooled and within a couple years bailed on what everyone called Safegarten's.  Cougar Kroger (West Gray) is one of those ghosts.

[editor]

23 hours ago, brucesw said:

Do any of the Kroger banners compete against each other in the same market

I don't know about Kroger, but there are places where Albertsons stores compete with its own Vons brand.

[Houston19514]

4 hours ago, mollusk said:

Don't forget, after Safeway did their 80s swoon they picked up the former Weingarten's locations and created the Apple Tree banner (apparently at least someone in their corporate chain realized even then that around here the Safeway name represents hostile service, high prices, crashing, and burning).  Nobody was fooled and within a couple years bailed on what everyone called Safegarten's.  Cougar Kroger (West Gray) is one of those ghosts.

That is not quite correct. Safeway pulled out of the market.  Apple Tree was a new company that acquired a whole bunch of the former Safeway stores.  Apple Tree was not part of Safeway. Similar things happened in other markets.  Some were more successful than others, at least partly because they were in less competitive markets (e.g. Homeland stores  - Oklahoma's version of Apple Tree)

[mattyt36]

Well, thanks to Wikipedia, I have found out Safeway entered the Houston market on its own in 1969 before buying out Weingarten's stores in 1983.

I do remember the short-lived AppleTree, for whatever reason I had it in my head that they advertised themselves as employee-owned, but my memory could be wrong.

What I also learned from Wikipedia is that AppleTree moved HQ to Bryan in 1997 and there was one location operating there until 2010 (!).  

H-E-B is fine, but I never shopped there until the MacGregor location opened due to the parking situation (which someone mentioned above)--I tried the Montrose location but gave up after a couple of times, and parking in a garage is just needlessly complicated.  I know their business model is volume, but it'd sure be nice if they opened more locations in the City.

I am not a fan of Kroger, but that is mainly as a former shopper of the West Gray location, which I just find absolutely tired and depressing--you'd think it'd be a true "flagship" location for the market.  Maybe they don't have a long enough lease to justify reinvestment given the other developments going on around there.  Am interested to see what happens with the Midtown Randall's most of all if the merger goes through.

[Reefmonkey]

I also remember Apple Tree as having been an employee-owned venture that was separate from Safeway (maybe some former Safeway employees/store managers) that moved into old Safeways.

My father bought an old Safeway location on North Houston-Rosslyn Road just north of where it crosses White Oak Bayou back in the mid-90s, and converted it into a warehouse/shop for his industrial controls business, and built an office building in the parking lot. After he sold the business and retired, he kept the property and leased it back to the company he sold the business to, until just a few years ago he finally sold the property, and made a killing. It's now a welding school. I remember that Safeway had been derelict so long, people had just come to think of it as abandoned property; right after my father bought it, he and his business partner went to it to meet with the contractor, and found some dude cutting up the parking lot to demonstrate a concrete saw he had invented. They were always having to chase semi trucks off it who thought it was a nice place to park their rigs when not in use.

The West Gray Kroger seemed nice when it opened circa 2000, but last time I was in it a year or two ago, it really seemed like it had not aged well for some reason.

[Tumbleweed_Tx]

the problem with Randall's is the chain is owned by Safeway.