I heard from a friend that her husband got a memo that Albertson's is closing their stores within a year. Has anyone heard anything about this?
I heard from a friend that her husband got a memo that Albertson's is closing their stores within a year. Has anyone heard anything about this?
No but it would not be a surprise. Wish HEB would move in and give Wal-Mart some competition.Quote:
Originally Posted by ksig121
Yes, I had heard about this. The Fort Worth Star-Telegram recently reported that Albertson's were up for sale, either as a whole, or in part.
I doubt Albertson's will close all their stores. I know they have several stores in the area that do quite well.
In a previous thread, I listed the local Brookshire's stores:Quote:
Originally Posted by Tnekster
East: Quinlan, Greenville, Rockwall, Kaufman, Terrell, Forney
West: Aledo, Azle, Benbrook, Springtown, Lake Worth, Weatherford
North: Allen, McKinney, Denton, Frisco, Wylie
South: Red Oak, Seagoville, Midlothian, Crowley
If anyone is in position to make a move into the D/FW core, it's Brookshire's.
On the other side of the coin, Albertson's has converted several locations into cut-rate (and no-card!) "Super Saver" stores, including two in Mesquite -- one on Oates Dr., the other on Galloway (IIRC). Could they be leaving the full-service market in Dallas, but keeping the self-serve stores? Or is Super Saver a dead end, like Max -- the self-serve concept they used for the smaller Skaggs stores they bought out in the '90s?
You left Commerce out of that list. It's the only grocery store in that town, other than the Super Wal-Mart.
I wouldn't be surprised if Albertson's pulled out of the DFW area. They left Houston and San Antonio but they are still in Austin also. I did read where they are falling further and further behind in market share here.
I also wish HEB would move here..someone in the Butt family actually said "never say never" when asked if full service stores would move closer into the DFW metroplex. As it is now, they are only as far as Ennis, Waxahachie, and Cleburne.
Aside from Central Markets (which I do enjoy), HEBs have never impressed me in the least. I'd rather see Brookshires come in than HEB.
If Albertsons Inc does find a buyer for the whole company, I would be surprised. They might sell out or might not. If ABS does decided to sell it would probably be in parts. As for the DFW stores, I doubt they would be a buyer for the entire division. Why? Safeway has been trying to get rid of Texas division (Randallís/Tom Thumb) and there have not been any takers. (They screwed up their Texas/Chicago Division so much that they canít dump entire one of them, which is a drain on the company.)
Wal-Mart has shown growth in this Market that would make anyone watching the grocery industry in DFW scratch their heads. They went from nothing to number one by a long shot in only a few years. (Knocked out Albertson, who knocked out Tom Thumb)
Brookshire has steadily retreated from DFW proper over time. Thatís how I know Iím out in the country. Minyardís has closed store after store. Tom Thumb has not built a store for a while now. Albertsons starting changing some store to Super Savers. But good old Wal-Mart is building stores non stop and entering protected markets like Far North Dallas and Lake Highlands, by building Supercenters on land previously occupied by other developments.
I was in a new HEB store in Georgetown a while back. They are setup like mini Central Markets and had a great produce selection. Better than anything I see here.Quote:
Originally Posted by Agnus Dei
The HEB I shopped at in Austin was head and shoulders above any grocery store I've been to in Dallas.
The ones I've been to had a fine layout, but in terms of selection and general customer service I was less than impressed.
However, I'm all for any grocer coming in to add to the market (or in HEB's case, expanding). Whoever they are will have a hell of a time, though. I don't know about now, but for a period in the 90's D/FW was the most competitive grocery market in the country. I imagine it's still high on the list.
I have to admit that some of the HEB's, especially the one I went to in Cleburne last year, are a bit dated. I grew up in San Antonio so when I return to see my folks, the HEB's there are incredible. They really are like little Central Markets...obviously not all....but the new prototypes they are now building are great. They are coming out with a store design called HEB Plus that pretty much encompasses most everything that you'd find in a Wal Mart Supercenter. And yea, the produce section to me is always the best.
I do like Brookshire's though too. I find my favorite brand of creamed corn in the freezer section there that no one else seems to carry!!!!! :D
That reminds me of the one thing I'll miss about Albertson's. They're the only store I've found that carries Fresh Start super-concentrated detergent. It was "Ultra" before "Ultra" was cool. A quarter cup per load, plus it's the only one that has never made the kids break out in a rash. If the Albertson's thing actually happens, I'll have to see if the Brookshire's in Kaufman will special-order it. But I'm still not sure Albertson's is going anywhere -- at least, it was a surprise to the cashier I talked to this morning. I hope I didn't ruin her day. :(Quote:
Originally Posted by 940
I was disappointed to see Safeway take control of Tom Thumb and Randalls. After their exit from the area in the 80's, I was surprised to see them return. Product selection is at an all-time low. Instead of two or more national brands, Safeway has cut most product lines to one national brand paired with a Safeway product. The "discount" cards also bother me. Therefore, I've been receptive to Walgreen's recent campaign to attract anti-membership shoppers.Quote:
Originally Posted by LakeHighlands
I heard that MBA students at SMU had been posed the following question.
Why would Wal-Mart enter the grocery store business?
The margin for profit in this business is slim at best. They're making their money off of non-grocery items in the main stores. Why take the risk for such a small return?
The HEB's in Houston are also wery good. I've always found the Albertsons in Uptown to be a dirty store from Day 1. I haven't shopped there in 2 years.
I work in Dallas, but live in Rockwall. One of the employees at our local Albertson's told us the store is either being closed or sold. Guessing there is some mis-management to blame as the quality of the produce continues to decline and they seem to have a hard time retaining employees.
My family and I started shopping there less when they added the silly key fob required to take advantage of the 'bonus buys'. The lack of this device is what makes WalMart Market more appealing to me.
We enjoy our Brookshires for quick shopping; and just 2 miles away in Rowlett is a relatively new Tom Thumb - very nice store with friendly people.
Would love to have a Central Market east of Dallas.
Reports: Tesco Mulling bid for Albertsons
SEPTEMBER 19, 2005 -- LONDON -- The British press was busy with reports yesterday that Tesco has sent an in-house team to the United States to probe the possibility of making a bid for Albertsons.
The Business paper here apparently broke the story, which was picked up by Reuters and other news organizations. Tesco, which is scheduled to report half-year results later this week, is said to be looking for an entrťe into the U.S. market, and the team is said to be snooping for takeover opportunities, with Albertsons an obvious option.
The Boise-Idaho-based chain made plain its intention to sell earlier this month, when it revealed it had hired investments bankers to explore options for increasing shareholder value. Since then, Albertsons execs have alluded to the possibility selling off parts of the company and keeping some parts intact, confusing some industry observers as it management's intentions. The reported price tag for the chain is $7.6 billion.
The press reports said the Tesco team is in the early stages of preparing due diligence on Albertsons before making a recommendation to their c.e.o., Terry Leahy. Of the reports, a Tesco Spokewoman told Reuters, "We never comment on rumours or speculation."
Tesco has been in expansion mode both in Europe and Asia, prompting none other than Wal-Mart to squawk to U.K. government officials about Tesco taking unfair competitive advantage through market dominance.
In addition to Tesco, France's Carrefour, Belgian Delhaize, America's Kroger and even Wal-Mart are said to be sizing up Albertsons for possible acquisition opportunites.
I like Tesco. I do all of my grocery shopping there... it's cleaner and cheaper than WalMart here in London.
:eek: :confused: :eek3:Quote:
Originally Posted by LakeHighlands
If this company buys Alberston's, maybe they'll start mopping the floors more often.
Maybe North Dallas will get a REAL grocery competitor back instead of that lame "Super Saver" (owned by Albertsons) on Central at Royal.
If anyone would like an example of how Albertsons' management has lost its way, check out the store at Midway and Trinity Mills. A year or so ago (maybe a bit more), they did a complete remodel. Tore the whole thing out and replaced it, basically. The result -- I can't find a blasted thing in that place. It's a fact of life that grocery stores purposely put the milk on the far side of the store so that you'll pass by everything else on your way to it, but this Albertson's takes that concept to a new and ridiculous level. There's no flow at all. Strike 1.
Another bizarre feature of this store's layout is the entry doors. The main entry dumps you into the produce section, separated from the cash registers and customer service area by the pharmacy (which is in the middle of the store) and a narrow passageway lined with the book & magazine section. There's no line of sight from these doors to anyone who could prevent merchandise from walking out the door. And as if that weren't bad enough, the restrooms are located right next to these doors. It's a five-finger-discount paradise: come in, "shop", chill in the bathroom until nobody's looking, and make your getaway. When I went by yesterday, the main doors had a sign saying that they are permanently closed -- you now must enter through a strangely-located set of doors near the side of the building. Strike 2.
The occasion for my visit yesterday was to pick up an October DART pass. The cashier was very helpful -- even though the Customer Service desk didn't open until 9 (it was about 7:30), she went over to get a pass for me. However, she couldn't -- the bookkeeper hadn't released them for sale. This was Thursday, September 29... Saturday is the first of October. Isn't that kind of late to get around to selling DART passes? I'm sure they're a low-margin item... but Fiesta brings a *lot* of people into its store by providing DART passes and similar low-margin services. If you're going to do it, do it right.
Strike 3. Despite great effort by the folks working in the trenches, I think Albertson's is outta here.
Yesterday, Safeway announced it will close some -- but not all -- of its North Texas stores. Today, analysts are calling their plans a positive sign. One analyist is quoted saying, "Considering all the options that have been on the table ... I think closing a few stores speaks volumes about their confidence in being able to turn the remainder of them into profitable stores."
Stores closing in DFW:
•4123 Cedar Springs, Dallas (apparently, this one earned the nickname "Mary Thumb"?)
•3322 N. Buckner, Dallas
•11255 Garland Road, Dallas
•7440 McCart, Fort Worth
•4209 Basswood Blvd., Fort Worth
•2334 Buckingham Blvd., Garland
•2810 E. Trinity Mills, Carrollton
•2430 E. Pioneer Pkwy., Arlington
•7120 Rufe Snow, NRH
Note that while DFW is losing 9 stores, there are still 62 stores remaning. Compare this with Houston, which will lose 16 Randalls stores (leaving just 36). Austin is losing one of its 15 Randalls stores.
Links to the stories:
Tom Thumb to close 9 N. Texas stores
10:25 PM CDT on Tuesday, October 18, 2005
Safeway plans closings
It will shutter 9 stores in D-FW, but its Texas strategy is applauded
12:00 AM CDT on Wednesday, October 19, 2005
I wonder why they're keeping the one at Skillman and Royal open. That place is a ghost town.
^Hey, what's the big idea!? :mad: I posted that Tom Thumb thread yesterday.
Kroger bids on Albertsons: sources
Friday October 21, 8:12 pm ET
By Michael Flaherty and Jessica Hall
NEW YORK/PHILADELPHIA (Reuters) - Albertsons Inc. has received a preliminary takeover bid from larger grocery store rival Kroger Co. (NYSE:KR - News), while its drug store unit has attracted bids from three pharmacy chains, sources familiar with the situation said on Friday.
Albertsons (NYSE:ABS - News) put itself up for sale in September after struggling against competition from discounters such as Wal-Mart Stores Inc. (NYSE:WMT - News). In addition to its namesake grocery stores, Albertsons owns supermarkets including Acme and Shaws, as well as drugstores Osco Drug and Sav-on Drugs.
Despite its competitive struggles, Albertsons, as a whole, could fetch more than $10 billion, plus the assumption of $6.5 billion of debt, analysts said. It was unclear what the drugstore chain would be worth on its own.
"We are somewhat surprised by these numbers but recognize that Albertsons does own some valuable assets, including real estate and the chain's drugstore assets," Prudential Equity Group analysts said in a research report.
Kroger (NYSE:KR - News), the No. 1 U.S. grocer, submitted a takeover offer for the entire company, competing against several teams of private equity firms, sources said.
Meanwhile, CVS Corp. (NYSE:CVS - News), Walgreen Co. (NYSE:WAG - News) and Rite Aid Corp. (NYSE:RAD - News) bid solely on the drugstore chains, the sources said.
Shares of Albertsons, the No. 2 U.S. grocery store behind Kroger, jumped 5.7 percent on Friday on media reports that bidders had submitted preliminary offers for the company. Goldman Sachs (NYSE:GS - News) and Blackstone Group are running the auction.
Prudential suggested that investors take advantage of the spike in Albertsons' stock price on Friday to sell their shares. The firm said the stock may eventually settle lower as the market looks at the company's fundamentals and growth outlook, rather than its value as a takeover candidate.
"The possibility still exists that the stock's valuation may once again reflect the business fundamentals rather than the company's value as a corpse -- with the former being much lower than the latter, in our view," the analysts said in the report.
Prudential analysts said they "continue to suggest that investors use news flow such as today's as a 'get out of jail free' card."
KROGER COULD FACE ANTI-TRUST SCRUTINY
A merger of Kroger and Albertsons may face intense regulatory scrutiny due to their dominant marketshare, analysts said.
The combined company may be forced to divest some assets or chains that could be snatched up by smaller rivals looking to bulk up in specific markets, analysts said.
A&P or Dutch retailer Royal Ahold NV (Amsterdam:AHLN.AS - News), which owns Stop & Shop, could be logical buyers for Albertsons' Acme chain to build up their mid-Atlantic marketshare, analysts said.
Safeway Inc. (NYSE:SWY - News), the No. 3 U.S. grocery chain, had eyed Albertsons but backed away, sources said. Safeway could return as a suitor for Shaw's Supermarkets if that chain got divested, analysts said.
Tesco (London:TSCO.L - News), Britain's top retailer, last month denied media reports that it would submit a bid. Some analysts said Tesco, however, could be drawn to Albertsons' Jewel-Osco chain in Chicago.
PRIVATE EQUITY BIDS
Albertsons has also drawn bids from teams of private equity firms, sources said.
Apollo Management, Kohlberg Kravis Roberts & Co. and Texas Pacific Group have formed one bidding group, while Thomas H. Lee, Bain Capital and Warburg Pincus have formed another team.
A third group consists of hedge fund Cerberus Capital and Kimco Realty Corp. (NYSE:KIM - News), a real estate investment trust, the sources said.
Yucaipa Cos., the investment firm owned by billionaire grocery magnate Ron Burkle, also bid on Albertsons, sources said. Earlier this year, Yucaipa bought Pathmark Stores Inc., which operates grocery stores in New York and the greater Philadelphia region.
CVS, Rite-Aid and Walgreen declined to comment. Albertsons, Kroger and Safeway could not be immediately reached for comment.
Bain, KKR and Yucaipa declined to comment. Apollo, Cerberus, Kimco Texas Pacific, Thomas H. Lee, and Warburg Pincus could not be immediately reached for comment.
Looks like CVS, known here for buying Eckerd from JCPenney, is the "winner" in the bid for Albertson's. Since I've *never* gotten anything but crappy service from CVS (and from Eckerd before them), I don't expect Good Things.
On the strictly-business side, how much cash do you figure Albertson's went through to add all that signage for Sav-on Pharmacy to all their stores? Either the new owners spend all that money again to re-brand as CVS, or they re-brand the CVS stores as Sav-on (or Osco, which would bring back childhood memories). Either way, it's an awful lot of cash in the fireplace.
Grocer's sale won't bring D-FW changes
11:58 AM CST on Monday, January 23, 2006
From Staff and Wire Reports
BOISE, Idaho - Albertson's Inc.’s long-awaited sale announced Monday raises many questions for the supermarket chain’s 12,000 Dallas-Fort Worth area employees, but the short answer is that there will be no big changes for now.
The Boise-based chain, the nation's second biggest traditional grocery store, said Monday it has agreed to sell the company for about $9.7 billion in cash and stock to an investment group including supermarket chain Supervalu Inc. and drugstore chain CVS Corp.
The 102 Albertson's stores in North Texas are included in the batch of 655 underperforming stores being acquired by private equity firm Cerberus Capital Management L.P., together with a group of real estate companies that includes Kimco Realty, Schottenstein Stores Corp., Lubert-Adler Partners and Klaff Realty.
Cerberus said it plans to continue to operate the stores, which are primarily in Texas, Florida, Colorado, Northern California and Arizona, and will be hiring a management team that will be headquartered in Boise, Idaho.
“We’ve made a commitment and we plan to operate stores under the Albertson's name,” said Richard C. Auletta, a spokesman for Cerberus in New York. “We can’t do that if we don’t have good people to run the stores.”
Analysts believe Cerberus and its real estate partners in the deal will eventually sell off markets, but first will try to turn around declining operations. For example, Albertson's has been losing market share in the Dallas area for several years as Wal-Mart Stores Inc. has expanded here.
Many employees have been worried about the company’s prospects since Albertson's disclosed it was up for sale in September.
“During the transition, and after the deal is closed, we plan to provide additional details to employees,” Mr. Auletta said.
The deal comes about a month after an earlier attempt by the consortium at reaching a deal for Albertson's collapsed. Albertson's owns the Jewel, Acme and Shaw's grocery stores and Sav-on Drugs and Osco Drug stores.
The companies said the total value of the transaction was $17.4 billion including debt being assumed by the buyers.
Under the terms of the transaction, Albertson's stockholders will $26.29 a share in cash and debt in the deal, a 9 percent premium over Albertson's closing price on Friday.
That includes receive $20.35 in cash and a fixed exchange ratio of 0.182 shares of Supervalu stock for each Albertson's share. The value of the Supervalu stock, based on a $32.65 average stock price using the 20 day trading average of the closing price of Supervalu stock through Jan. 20, is $5.94, bringing total consideration per share to $26.29. Albertson's shares closed Friday at $24.11.
The $17.4 billion figures also assumes the settlement of the Albertson's Hybrid Income Term Security units, the companies said.
Supervalu, based in Minneapolis, is paying about $6.3 billion in stock and cash and will assume approximately $6.1 billion of Albertson's debt for 1,124 Albertson's stores. The deal makes Supervalu the nation's second-largest supermarket chain after Kroger Co.
CVS of Woonsocket, R.I., is purchasing about 700 stand-alone 700 stand-alone Sav-on and Osco Drugstores and Albertson's ownership interests in the drugstore real estate for about $2.9 billion. The chain now operates more than 5,000 stores.
Following the transaction, approximately 65 percent of the new Supervalu will be held by existing Supervalu stockholders, and approximately 35 percent will be held by Albertson's stockholders on a fully diluted basis reflecting options, awards and the settlement of the HITS.
The boards of Supervalu, CVS and Albertson's, as well as the investment committees or equivalents of the Cerberus-led group, have approved the transaction.
Dallas Morning News staff writer Maria Halkias and the Associated Press contributed to this report.
I felt the same way about the Albertsons in Cedar Hill. I went there a couple of times and said screw this. It was just a pain in the arse.Quote:
I can't find a blasted thing in that place. It's a fact of life that grocery stores purposely put the milk on the far side of the store so that you'll pass by everything else on your way to it, but this Albertson's takes that concept to a new and ridiculous level. There's no flow at all. Strike 1.
Due to distribution, a grocery chain shouldn't keep just a few stores out of hundreds open. If the others are doing bad, generally they will close all of them (otherwise costs would go through the roof).Quote:
I doubt Albertson's will close all their stores. I know they have several stores in the area that do quite well.
Obviously, high end stores like Central Market are the exception. However, this is part of the reason that HEB hasn't entered DFW. They would probably want to create a distribution center here, and in order to justify that they would need to open a ton of stores.
Didn't know CVS & Albertson's will be owned by the same people.
Since the ownership group also includes real estate companies... I bet that some stores are sold off. Other than next to West Village where are the "in-demand" Albertson's?
BTW, that Albertsons sucks too.
Wal-mart hurt for sure, but stores like Tom Thumb and Albertsons didn't help with their inconvenient store setup and overpriced goods.
HEB, I wish you were here. I'd pay a few cents more just to not have to go to two markets to get all of my groceries.
I don't know, the Tom Thumb near me in west Richardson is always clean, well-stocked and easy to navigate. I agree the newer Albertson's are a pain, though.
As far as ALB stores in demand, besides West Village I know that the one at Northwest Highway and Midway usually does a brisk business, and the Northwest Hwy/Ferndale location in Lake Highlands has seemed crowded on the occasions I've been in there.
My favorite traditional grocery store in the area is the Tom Thumb at Preston and Royal. It's small, carries most important items and has a great deli/bakery. It also reminds me of all the great old-school Tom Thumbs that are no longer with us. (Central/Mockingbird, NW Hwy/Hillcrest, Knox/McKinney, etc.)
i generally go to the minyards or to save a lot and dollar general
does anybody have any meat markets that come highly reccomended?
If you ask for a Boston Butt and the butcher responds with a blank stare... we shop at the same store.
It is almost impossible to find a good butcher. I'll ditto the call for a good location.
Kuby's in Snider Plaza?
Does Dallas have the worst supermarkets of any major metropolitan area?
Not the worst, but compared to the rest of Texas, yes. I think we are low on the number of upscale groceries too. Its like the Dallas market tries to be too exclusive with the high end stuff and the other grocers are too afraid of Wal-Mart. Shopping in Austin, SA, and even the RGV is a much better grocery experience. I'm sure its hard to understand how much better of a grocery store HEB is than what we have, but it simply is. I started missing that HEB in Hancock Center immediately when I got back up here. If I were to leave tomorrow, I wouldn't miss any grocery store up here.
HEB > Tom Thumb, Wal-Mart, Albertson's, Minyard, Fiesta.
If you start jonesin' for HEB, there's one in Ennis, just a short drive down I-45. Interestingly, there's not a Brookshire's in Ennis, like there is in every other town outside the big DFW cities, but there is a Super Saver -- Brookshire's "discount" brand. DFW seems to be an island in the Texas grocery market.Quote:
Originally Posted by rantanamo
By the way, I heard something a while back about Whole Foods making plans for a Dallas "flagship" store patterned after the Austin store. I went there when I was in Austin before Christmas, and the place was *insane*! Not just humongous, but just totally over the top in all sorts of fun ways, like ice sculptures and a temporary ice skating rink on the top floor balcony. Plus, the multi-level parking garage with the only moving sidewalk I've seen outside an airport, so that you can get your shopping basket down to the next floor. And it looked like they might have had drive-up grocery delivery, a concept I hadn't seen since McCartney's in Tulsa.
Would a Central Market vs. Whole Foods food fight be good for the rest of Dallas grocery shoppers, I wonder?
Super Saver is actually Albertson's discount brand.Quote:
Interestingly, there's not a Brookshire's in Ennis, like there is in every other town outside the big DFW cities, but there is a Super Saver -- Brookshire's "discount" brand.
Brookshires' discount brand is Super 1 Foods.
My bad. It's a Super 1 in Ennis (and a Super Saver in Mesquite).Quote:
Originally Posted by sasquatch69
does anybody remember community mart
Re: good butchers. I think that one thing has happened in recent years in Dallas- Texan in general- and that the greater demand for select cuts rather than choice. I think it's changed what is expected of butchers.
i buy my meat in bulk ...i usually get like one case of steaks for like $150-200 a case and that saves alot of money at the grocery store....the only meat i ever have to buy is occasioally ground beef for tacos and burgers and ever once in awhile some chicken wings to fry up
You can blame me. I've never ordered a custom cut of anything. I just go to the store, grab what's in the meat case, and head for the aisle where the pop bottles grow wild. I wouldn't any more think to ask a butcher for a specific cut than I would ask the guy at the quickie-mart for a particularly fresh candy bar.Quote:
Originally Posted by trolleygirl
I don't remember my parents ordering from the butcher, either, though I do have vague memories of when the butcher's work area was right behind the meat case, and you could watch him using that big ol' bandsaw to turn big chunks o' meat into small chunks o' meat. I do remember the button you could push to call the butcher, but I never remember pushing it. But I was tempted, of course, to push it and then run down the cereal aisle, laughing.
I think a lot of the chains, I'll blame Safeway because of childhood emotional attachments to Tom Thumb, don't do a lot of traditional butchering in-store. If they do, it must be restricted to one or two people. The obvious exceptions are kosher.
Ditto regarding one I visited in San Antonio. I'd love to see HEB in the Dallas market.Quote:
Originally Posted by Columbus Civil
Albertson's is being bought by an investment group that will keep the better stores, and there are several in DFW doing very well, and sell the ones doing poorly or tear them down and redevelop the land. With Tom Thumb also not prospering I think there's a niche for HEB to move in with their standard stores.
Here's an article from this week on Albertsons
BOISE, ID-Grocer Supervalu, along with drugstore chain CVS Corp. and a group of investors including retail-REIT Kimco Realty Corp., is acquiring Albertsons for $17.4 billion. Albertsons shareholders will receive $20.35 in cash and 0.182 shares of Supervalu for their companyís individual stocks, and the parties expect to close the deal by the summer.
Minneapolis-based Supervalu will take the bulk of the company, paying $12.4 billion of the total transaction, made up of $3.8 billion in cash, $2.5 billion in stock and $6.1 billion in debt assumption. CVS, based in Woonsocket, RI, is buying 700 Albertsons stand-alone drug stores for $2.9 billion. A group that led by private-equity firm Cerberus Capital Management, which includes Kimco, Schottenstein Stores Corp., Lubert-Adler Partners and Klaff Realty, gets the rest.
Supervaluís portion of the deal will give the company an additional 1,124 stores and bring its portfolio to 2,653 units. The company is picking stores under the banners of Acme Markets, Albertsons, Bristol Farms, Jewel-Osco, Shaw's Supermarkets and Star Markets in the Intermountain, Northeast, Northwest and Southern California regions.
ďThere are no plans to divest any of this,Ē said Jeff Noddle, chairman and chief executives officer of Supervalu, in a call with analysts and investors. ďThere arenít as many overlaps as you might expect.Ē The overlap that does exist between portfolios is in the Northwest and Pennsylvania.
It will take approximately three years to integrate Supervalu and Albertsons stores, Noddle says. During that time, some Albertsons units might be converted into Supervalu chains such as its discount vehicle Sav-A-Lot or the natural foods outfit Sunflower Market, which opened its first unit, in Indianapolis, earlier this month.
In Chicago, Supervalu will assume Albertsons portfolio of Jewel-Osco food and drug stores. Meanwhile, the company sold its 26 area Cub Foods units to Cerberus for $61 million.
The Cerberus-Kimco group is getting just under 700 stores in Dallas-Ft Worth, Northern California, Florida, the Rocky Mountains and the Southwest. Meanwhile, CVS picks up 700 stand-alone Sav-On and Osco drug stores, boosting its portfolio to 6,100 units. The deal gives CVS a newly strengthened presence in Southern California and bolsters its existing exposure to the Midwest and Southwest
So CVS isn't actually going to be running the Albertson's stores. (phew!) Instead, they'll be owned by some outfit named after a three-headed dog and a pickled Korean vegetable. Wow, that's encouraging. :)
The Cerberus-Kimco group is getting just under 700 stores in Dallas-Ft Worth, Northern California, Florida, the Rocky Mountains and the Southwest.So while Supervalu says "there are no plans to divest", they're not talking about DFW and the rest of Albertsons' low-performing dogs... get it, Cerberus, dogs, ha! ha! oh, never mind. The point is, the DFW Albertsons stores are still looking for a long-term buyer.
Meanwhile, though, the Albertsons at Trinity Mills and Midway has "Help Wanted" signs out, despite the nearby Tom Thumb's closing. Is the labor market that tight, or are Albertsons employees leaving before the Titanic sinks any further?
I wonder if it's something that they would or could even consider, HEB buying the Albertson's in Texas. I sure like the idea of homegrown companies holding majority marketshare.
^ Welcome to the forum jo4.