Kroger to buy Roundy's for $800 million

[storewanderer]

I think I already saw they are rebranding Copp's to Pick N Save. That would appear to demonstrate ongoing plans to keep using that name. Frankly, I don't think the Pick N Save name has much value, but, perhaps best to not rock the apple cart with a rebranding just yet. These Pick N Saves have some operational problems that frankly are troubling enough that the stores are not yet at the right level operationally to have the Kroger name.

Metro Market will probably turn into a Ralphs Fresh Fare like thing. Metro Market was the prototype for Mariano's in Chicago but wasn't executed as well and wasn't nearly as popular as Mariano's. Part of what makes Mariano's tick is the urban dense locations and Milwaukee is not really the same as Chicago and not nearly as dense as Chicago. So while the stores sort of feel like Mariano's and have some similarities they are just in general lacking.

[rwsandiego]

I think I already saw they are rebranding Copp's to Pick N Save. That would appear to demonstrate ongoing plans to keep using that name. Frankly, I don't think the Pick N Save name has much value, but, perhaps best to not rock the apple cart with a rebranding just yet. ...

Pick 'n Save has been around Milwaukee for a long time. If you look closely at the Copp's website, you will see in one of the pictures the employee is wearing a Pick n Save name tag. Wouldn't have surprised me if Roundy's had plans to re-brand Copp's.

...These Pick N Saves have some operational problems that frankly are troubling enough that the stores are not yet at the right level operationally to have the Kroger name. ...

Kroger purchased and subsequently re-branded Krambo back in the 1950's or 60's. That Kroger name just didn't resonate in Milwaukee. Pick n Save was traditionally a warehouse operation. Sentry foods and Kohl's, both long gone, were the traditional supermarkets.

I...Metro Market will probably turn into a Ralphs Fresh Fare like thing. Metro Market was the prototype for Mariano's in Chicago but wasn't executed as well and wasn't nearly as popular as Mariano's. Part of what makes Mariano's tick is the urban dense locations and Milwaukee is not really the same as Chicago and not nearly as dense as Chicago. So while the stores sort of feel like Mariano's and have some similarities they are just in general lacking.

Jewel tried to crack into Milwaukee twice - after Kroger left and then again in the 1990's. When they closed up shop the second time around I read a story that attributed their failure to them being too "fancy." Yes, you read that correctly. "Too fancy." Jewel.

I mention that because Mariano's would not work in Milwaukee less because Milwaukee doesn't have the density and more because Milwaukee isn't the same as Chicago. Mariano's first store was in a Chicago suburb. They have successful stores in neighborhoods that are not very dense (Jefferson Park, Harwood Heights are good examples). Milwaukee has plenty of that. What Milwaukee lacks is a customer base that will shop at a Mariano's. A Dominick's Fresh Store-type operation (essentially a higher-end Ralphs Fresh Fare) would probably do OK in Milwaukee. Never been to Metro Market (will trek to Milwaukee next time I am in Chicago), but your observations substantiate everything I have read.

[pseudo3d]

Kroger purchased and subsequently re-branded Krambo back in the 1950's or 60's. That Kroger name just didn't resonate in Milwaukee. Pick n Save was traditionally a warehouse operation. Sentry foods and Kohl's, both long gone, were the traditional supermarkets.

Like I said, Kroger's expansion took place in a time when they could get away with rebranding stores, and Krambo was not the only one...they briefly had a store in Waco, Texas (like Krambo, they "Kroger-ized" the logo in ads by making it similar in style to the classic Kroger logo).

In 1955, Kroger purchased Henke & Pillot, a local Houston chain with 18 stores (some sources say 26) and a central bakery, rebranding it as Kroger in the 1960s. Today Kroger has over 100 stores in the Houston division, with a vast majority of those stores in the Houston area (and #1 in market share).

Jewel tried to crack into Milwaukee twice - after Kroger left and then again in the 1990's. When they closed up shop the second time around I read a story that attributed their failure to them being too "fancy." Yes, you read that correctly. "Too fancy." Jewel.

Jewel-Osco closed for the second time in Milwaukee under SuperValu in 2007 (selling or closing their stores), and probably were doing to a lesser extent with what Albertsons LLC was doing at the time...selling off profitable but underperforming markets.

[storewanderer]

I think Jewel did not do too well in WI back in 2007 (much lower store volumes than the stores down around Chicago did) but I think there may have been some other reasons that those stores were so abruptly sold after the SuperValu purchase. Like, SuperValu had some sort of non-compete agreement with some other operator(s) in WI. I don't know anything to substantiate that but heard some bits of information.

The Pick N Saves I went into were generally conventional stores but they were large with open ceilings. Perhaps they used to be a warehouse format but stopped that format at some point. Checkout was full service, they had service departments, etc.

Ironically some of the Pick N Saves I went into in some rough neighborhoods I felt could have done better as a warehouse/discount format...

The Pick N Saves in former Jewels are/were unremodeled and generally pretty nice stores.

[pseudo3d]

I think I already saw they are rebranding Copp's to Pick N Save. That would appear to demonstrate ongoing plans to keep using that name. Frankly, I don't think the Pick N Save name has much value, but, perhaps best to not rock the apple cart with a rebranding just yet. These Pick N Saves have some operational problems that frankly are troubling enough that the stores are not yet at the right level operationally to have the Kroger name.

Metro Market will probably turn into a Ralphs Fresh Fare like thing. Metro Market was the prototype for Mariano's in Chicago but wasn't executed as well and wasn't nearly as popular as Mariano's. Part of what makes Mariano's tick is the urban dense locations and Milwaukee is not really the same as Chicago and not nearly as dense as Chicago. So while the stores sort of feel like Mariano's and have some similarities they are just in general lacking.

Metro Market did open a store under Kroger earlier this year in Wisconsin and it looks pretty swanky, complete with features like an oyster bar and beers on tap and all that. While Fresh Fare distinctions don't exist in all markets, what I'm thinking is that for the Roundy's division, Kroger could take a two-tiered approach by in Milwaukee keeping Pick N Save (possibly rebranded to Kroger) and Metro Market (possibly rebranded to Mariano's) while in Chicago keeping Mariano's and possibly building Krogers, to both keep Mariano's from being diluted and as a more direct competitor to Jewel-Osco.

(As for Kroger's past stores in Milwaukee and Chicago, that's so far in the past now that it won't matter if they want to get back in with Kroger-branded stores)

[storewanderer]

Kroger still has a couple dozen Food 4 Less Stores scattered around Chicago also. I think those do okay... they built all of those in the early 2000's. They have closed a few. All are generally in rough neighborhoods underserved by other operators.

I see no reason for anything to be rebranded in Chicago. Mariano's can stay as an upscale banner and F4L as the low tier banner. I don't see much reason for them to develop Kroger format stores in Chicago. There are already enough Jewels in Chicago to adequately serve the boring middle segment grocery market there. Chicago is a fairly diverse market with a lot of small local chains/independents/heavy ethnic stores and it is more competitive than you'd think it is.

The question is do they spend time/resources building up Kroger in Chicago area or do they continue to let Mariano's grow itself? I think at this point they are better off letting Mariano's grow as it has proven successful in the market and is well liked. I am not really sure what Kroger format would bring to the table in Chicago. More competition for Jewel is nice but is it anything people will get excited about? People get excited about a new Mariano's.

There are probably parts of Chicago that aren't right for a Mariano's or F4L. The question is how many parts are like that and what are the potential expansion opportunities there? I am not sure it is worth it. Maybe a few Krogers could open on the far perimeter suburbs of Chicago (they are already in Bourbonnais with a fairly new store) but I just don't think we will see (m)any open.

That new Metro Market looks on full par with a Mariano's. I am not entirely clear why they use the name "Metro Market" in WI rather than the name Mariano's.

Pick N Save has a bad reputation and the decision has to be made to fix those stores by adding labor and improving execution. I don't think they need a lot of major remodeling type work (unlike how Smiths was) but some little cosmetic upgrades will help some locations. I know Kroger can do this. They did it with Smiths. It will take time. Years. Eventually if they still can't get the reputation of Pick N Save to improve then I think you will be looking at a rebrand. But it won't be anytime soon.

[storewanderer]

Interesting article. http://www.chicagotribune.com/suburbs/n ... story.html

[pseudo3d]

Interesting article. http://www.chicagotribune.com/suburbs/n ... story.html

I used to work night crew for a big grocery chain, and we had trucks (milk I think, but also some regular merchandise) come in at the wee hours at the night (between 1 am and 5 am). It did not back up against any neighborhood though directly.

Really, if the noise is really that troubling, they need to build bigger noise-absorbing walls like they do along highways.

[rwsandiego]

I think Jewel did not do too well in WI back in 2007 (much lower store volumes than the stores down around Chicago did)...

They didn't do well at all. I did a Google search on Jewel in Milwaukee and the following came up:

https://groups.google.com/forum/#!topic ... HaP8MBSc7o

I forgot about the pickets when they opened up. Illinoisization of Wisconsin and all.

...The Pick N Saves I went into were generally conventional stores but they were large with open ceilings. Perhaps they used to be a warehouse format but stopped that format at some point. Checkout was full service, they had service departments, etc....

I should have been more clear. Pick ' Save started out as a warehouse store, but they have since evolved into a full-service food store.

...The Pick N Saves in former Jewels are/were unremodeled and generally pretty nice stores.

Seriously? Those stores were first opened in the late 1990's! Do you recall what decor package they used? If memory serves correctly, some of the stores had the Jewel interior that is sometimes referred to as "Albertsons Marketplace" and a couple had an interior where the department signs were in a font similar to the 1970's Dominick's logo (see below - can't remember what the font is called) mounted on a metal grid. I seem to recall purple and grey.

[storewanderer]

I was in 3 stores with the late 1990's decor and one with the decor you describe that looked awful (that one has since closed, I think the other 3 which looked nice are still open).

The one with the nicer interior photos below sure looks dark.