Albertsons/Osco closings...

[sokkerdewd]

...but No Frills, Bag & Save, U-Save, and Drugtown will open. (Even though this removes one competitor from the Omaha grocery market, at least they aren't new Walmart Neighborhood Markets.)

From the World Herald:

Published Thursday
June 17, 2004

Albertsons sells Nebraska supermarkets

BY STEVE JORDON



WORLD-HERALD STAFF WRITER


Albertsons Inc. said Thursday it will sell its supermarkets and drugstores in the Omaha area and Grand Island, Neb., a 21-store pullout that leaves about 1,100 employees wondering about their futures.

Omaha grocery chains Bag 'N Save and No Frills Supermarkets, which are buying or subleasing the stores, and the U-Save drugstore chain of Omaha, which will operate the in-store pharmacies, say they hope to hire all but about 200 of the workers when they take over operations by the end of August.

"I think we'll need at least as many people as they've got working, if not more," said Leon Shrago, vice president of Bag 'N Save, even though the company will close two of its stores and move to nearby Albertsons locations at 108th and Q Streets and 76th and Dodge Streets.

Bag 'N Save would hire about 400 workers, No Frills about 440 and U-Save between 40 and 60, for a total of about 900.

Those facing the biggest challenges are about 180 people who work at nine free-standing Albertsons-owned Osco drugstores, which are being closed altogether. The Osco store at 757 West Broadway in Council Bluffs will be sold to Hy-Vee Food Stores and become a Drug Town store.

"After all these years, I bleed Albertsons blue," said Lavell Wright, bakery manager at the Albertsons store at Saddle Creek Road and Cuming Street and an employee for 13 years. "Now I don't know what I'm going to bleed."

Employees at the store heard that No Frills would take over, and customer service employee Dena Noah said she cried at the news. "It's kind of sad, kind of like breaking up a family," Noah said.

Besides that, she said, "Everyone's going to have to reapply, so we don't know if we're going to have jobs. If we get jobs, I don't know if I'm going to lose my insurance."

Joan Dobias-Davis, Albertsons' human resources manager, said managers were sensitive to those issues and answered as many employee questions as they could. Employees said they were told that such departments as seafood and floral that No Frills doesn't have will remain open at the Saddle Creek store at least temporarily.

Denise Myles, front-end manager at the Saddle Creek store, said the staff knows the customers and is used to dealing with them. "Some of them won't know if they can handle the change," Myles said.

Cashier Sandra Dorrall, an eight-year employee and 20-year veteran of the grocery business, said she thinks the change will be "really great. Bring it on. I need the excitement."

Wright, the bakery manager, said employees weren't told what the pay scale would be and how many jobs would be available, but he's not nervous.

"You gotta work anyway," Wright said. "Bills gotta be paid. Kids still gotta be fed. I was looking when I found this job, so if I have to look again, that's what I'll do."

At the Albertsons store at 14444 West Center Road, manager Jim Hayduk said the employee meeting went smoothly. "I think everything will work out well for everyone involved," he said.

Customer Lori Havas, a Nevada truck driver, said as she pushed her cart through the store that she was sorry to hear the news. "It saddens me," she said. "Albertsons is a place where all over the country, I can consistently get good food."

But Mary Bukowski, who was taking in film to be developed, said she preferred Bag 'N Save anyway.

"I've never been a big fan of Albertsons grocery," she said. "They've always been a little bit more expensive, I think."

The reason for Albertsons' pullout, which leaves Omaha customers with one less supermarket choice, matches a report on the impending sale by The World-Herald last week: Albertsons, based in Boise, Idaho, wants to rank at least No. 2 in all of its markets, and the Omaha stores have lagged far behind in market share.

"I've never known us to close a division that was profitable," said Albertsons spokesman Walt Rubel in Philadelphia.

Albertsons will sell Osco's prescription lists to Walgreen's and will put the free-standing drugstores up for sale.

"In some cases, the associates will be eligible for severance (pay)," Rubel said. "But No Frills and Bag 'N Save want to interview all our Omaha-area associates. There will be opportunities for many of them to get jobs with those two companies.

"There's always a shortage of employees in drugstores. We would anticipate that many of them, most of them, should have no difficulties landing positions."

Albertsons already has pulled out of markets in Iowa, Kansas and Missouri, all part of its Texas region. The store in Scottsbluff, Neb., is part of its Colorado division and will remain open, Rubel said.

Within hours of the long-rumored announcement, Rich Juro, chief executive of No Frills, stepped out of his silver Accura SUV outside the Albertsons store at 909 Fort Crook Road North in Bellevue. He shook hands with the store manager and then went into a room where employees had just been informed of the sale plans, shaking hands with politely smiling employees as he went.

Earlier, Juro said, "We're going to have a lot more customers in here once we lower the prices. . . . We're going to go around and talk to customers and see what we need to do differently."

Juro said he didn't know what proportion of his employees are full-time or how many he would hire at each store.

He said salaries would be comparable to those paid by Albertsons. Terms were not disclosed, but Albertsons said the sale would decrease its operating results by about $22 million, mostly due to writing down the value of its property and equipment. Albertsons said it still plans to meet its 2004 profit projections, however.

The departure comes 23 years after the chain opened its first Omaha location.

"We don't make these decisions lightly," Rubel said, typically taking at least six months to a year to weigh all factors. The Omaha stores had made improvements such as adding new brands and taken part in other companywide initiatives to boost business.

"Once you announce that you're closing, you can expect some fall-off in business," Rubel said. "You can also expect some associates will seek to find other positions. In this case, the food stores are remaining open and operating, and all of the associates will have a chance to interview with the two acquiring companies to stay on, once we're no longer operating them as Albertsons."

Bag 'N Save's Shrago said the company would sublease its building at 75th and Dodge to someone else and either sell or redevelop its property at 108th and M Streets.

Staff writers Marion Rhodes, Mark Kawar, Joe Dejka, Rick Ruggles, Christopher Burbach and Jonathan Wegner contributed to this account.

[jiminomaha]

Does anyone know what the albertsons on saddle creek will become? Its only a few blocks away and very curious as to what it will become.

[Brad]

(at least they aren't new Walmart Neighborhood Markets.)

sokkerdewd,

I dont know if you were being serious or not, but walmart is building "neighborhood markets" There is one at 168 and harrison, and they are building one at 72 and giles, and I thought I saw a sign for one more being built. I think they are called safeway of fairway or something like that. A friend of mine is in a business that deals with both companies and tells me that walmart is opening under a different name to try to get more of a market share.

Did anyone see the new hy-vee in the "omaha daily paper"(I guess since they call it the quest center I can start using their name again) that is being built at 50th and center, what a great boost for that neighborhood.

Also construction of the new Hy-Vee at 156 and Maple is well underway.
[/quote]

[jays25ks]

at 16i and harrison? isn't that a fairway foods?

[jays25ks]

scratch that last thing i did't read into it. but fairway is not in any way related to walmart neighborhood markets.

[Brad]

I am just telling you what a friend of mine who works one the BUSINESS end of both fairway and walmart told me that that they are the same. i don"t know if he is right or not.

[eomaha]

Fareway is in NO way related to Walmart. They are based out of Boone, Iowa... have about 80 stores in Iowa, Illinois, and now Nebraska. They've been around a long time too... founded in 1938... by former Safeway employees.

[Coyote]

Albertsons parent Cerberus to buy Safeway

Fewer choices...

[Brad]

Fewer choices...

We don't have either here anyways...

[Coyote]

Fewer choices...

We don't have either here anyways...

No, but reading the article, I think it will be a bigger trend to come.
I was thinking of combining a few threads into a local grocer's thread; the demise of Safeway, Albertson's, Hinky Dinky... Kroger buying out Bakers..., Bag & Save, No Frills; Super Target, Walmart Marketplace...
The changing scene of local and national grocers.
It was not happenstance I made a 10 year old thread revival...

[jessep28]

It just seems from the surface like consolidation is the growth strategy right now for the bigger grocers. Just look at the Bag n Save/No-Frills merger. Nothing has changed at either chain since they were "merged." It's a revenue grab. In addition, wIth more stores, you get more leveraging power with suppliers to cut costs and boost margins.

[Coyote]

Yet this month I have shopped at four Hy-Vees (Stony Brook, Shadow Lake, Linden Market, 180 Pacific - I just found out all are locally owned, have different items, talked to three managers trying to find my favorite foods...) a couple Bag n Saves, a Bakers, No Frills, just peaked in a Wally Market, a Super a Target... I have tried to stay away from Aldi's, Fareway... Didn't we gave a SunMarket... And I didn't mention a Whole Paycheck, nor Menard's where I finally found a sizable bag of my peanut butter infused pretzels...

[Busguy2010]

It just seems from the surface like consolidation is the growth strategy right now for the bigger grocers. Just look at the Bag n Save/No-Frills merger. Nothing has changed at either chain since they were "merged."  It's a revenue grab. In addition, wIth more stores, you get more leveraging power with suppliers to cut costs and boost margins.

The difference to me as a customer is going to Bag N Save or No Frills and getting the same generic Our Family products for the same price. Our Family seems to sell good stuff if you ask me. I also see sales on products that both Bag N Save and No Frills carry.

[Uffda]

. I have tried to stay away from Aldi's, Fareway....

Curious why you are avoiding those two

On another note when I lived in Casper WY the two main grocery stores were Alberstons and Safeway, so there the choose becomes less.

[bigredmed]

. I have tried to stay away from Aldi's, Fareway....

Curious why you are avoiding those two

On another note when I lived in Casper WY the two main grocery stores were Alberstons and Safeway, so there the choose becomes less.

Aldi's is owned by the same German corp that owns Trader Joes. The best part of Aldi's is that they carry European chocolate at normal candy prices.

Fareway has nothing special in terms of groceries, but has a rocking meat counter. Basically, it's a butcher shop that sells other food.

[bbinks]

The difference to me as a customer is going to Bag N Save or No Frills and getting the same generic Our Family products for the same price.  Our Family seems to sell good stuff if you ask me.  I also see sales on products that both Bag N Save and No Frills carry.

The easy solution would be for Bag n Save and No Frills to change their name to Nash Finch as that is their parent company. Owner of the Our Family brand.

[debradomayer]

Nash Finch merged with Spartan stores out of Michigan the 1st of the year and now known as Spartan-Nash. It's been said the reason for the merger is to gain control of the military commissary business. My guess is sometime in the next couple of years there will be banner name & format changes.

[bbinks]

Nash Finch merged with Spartan stores out of Michigan the 1st of the year and now known as Spartan-Nash. It's been said the reason for the merger is to gain control of the military commissary business. My guess is sometime in the next couple of years there will be banner name & format changes.

The number of choices gets shorter.

Once upon a time Bag and Save, Baker's, and No Frills were all locally owned and operated. I met Harold Cooperman once. A very friendly and genuine man.

[nativeomahan]

The number of choices is still sizable:
Bag and Gag/ No Thrills
Kroger
Fareway
Trader Joes
Aldi
Super Saver
Hy-Vee
Wallmarts
Super Targets
Whole Foods
Several Organic markets
Several Asian markets
The Mexican supermercados
Several Farmer's Markets
Several Independents (although Broadmoor Market just announced their closing)
Plus independent butcher shops and meat markets, independent bakeries, various spice markets
And other chain stores that sell lots of food items, like Big Lots