News Break:
One Genuardi's to remain open!
Abercrombie Mike left a link after the recent "Store Count" post to an interesting, if a bit confusing, article about Genuarid's. Turns out, one location in Audubon will remain open while all others have been sold off or will close permanently. The article is at timesherald.com. It sounds as if the store must remain open due to terms in the original lease. A few comments by the manager even seem to indicate business isn't what it used to be at the store. He also talks about the virtues of Safeway products that will continue to be available at this location. As history now shows us, Safeway doomed Genuardi's from the first day it acquired the chain back in 2000. Stories of customer revolt back in those days are legendary. Safeway clearly never won customers back even with their recent "lifestyle" remodel packages. From what I've seen from my own experiences, both Giant and Weis haven't been able to turn these store into big draws either. It would be nice to see Acme step up its game as the playing field in the Philly market is changing. Doesn't look like that will happen with the sorry shape of SuperValu these days.
I have a hard time believing they are staying due to their lease. I would imagine the leases at other locations that have been shuttered (Cherry Hill, Voorhees, Marlton, Egg Harbor Township, Barnegat, etc) also require them to stay open or pay rent. I'm suspecting there's a different reason this store stays open. Perhaps to retain employment of the longest serving company employees, or even the few remaining Genuardi family members? Who knows. I do know that no one will buy this store. BJ's wholesale club, Wegmans, Giant, and Target with a P'fresh are all less than 5 minutes away. This Genuardi's is small compared to modern day grocery stores.
ReplyDeleteGenuardi`s had can`t go dark clauses in a number of their leases. Safeway was able to buy their way out of the leases in every case except for Audubon.The landlord there will not let them out of the lease so the store must remain open till the lease runs out in 2015.
DeleteWhat Exton Genuardis did was they lust left all of the lights on after closure. Hey-It does'nt violate the cant g dark clause
DeleteI have to wonder if the several obsolete Acmes (and many Super Fresh stores) only stay open due to lease issues like this too. I can't see the Maple Shade and Clayton Acmes hanging on much longer, but their leases are probably more restrictive than leases were on the many Acmes which have closed. Perhaps the fact that these two locations are by themselves and not in shopping centers is the reason for this. Both of them if they closed would probably be a hard sell for new tenants other than companies like Save-A-Lot and Family Dollar.
ReplyDeleteThere actually have been cases of stores forced to stay open due to a restrictive lease; the Clover in the Shore Mall was open almost two years after the rest of the chain was sold off. Genuardi's has been in the Audubon shopping center since the late 60s, so there may be some old-fashioned clause stating that they must have an open store there at all times (whether Genuardi's or another chain, if sold). The other three are newer stores and while Safeway may end up paying rent on the empty stores, they're still allowed to do that.
ReplyDeleteSmaller Acmes like Maple Shade and Clayton most likely stay open because they're small, and as such have relatively low rent; just because a store's small it's not necessarily unprofitable, in fact they may be even more so.
I have to wonder how much longer the Mt. Holly NJ location will hang on as well. Yes it is a large store at 64917 Sqft, but there is very little traffic there for a store of that size. The last time I saw a crowd there was when people were stocking up for Sandy. Other than that, I can't remember the last time I saw that store busy. I'd also be surprised if Willingboro makes it through if they were to do another round of store closings in the future. Shoprite, Walmart, and it appears Now the new Bottom Dollar get most of the business in the Mount Holly NJ area.
ReplyDeletei would think burlington and willingboro would go first, especially beings the burlington acme is in the same plaza with a walmart. willingboro has taken a harder hit with bottom dollar and pathmark still being around. mt. holly is still profitable, but has lost sales like most of acmes, but the store seems to hold its own. only time will tell.
ReplyDeleteI was just in the Burlington Acme the other day. It has the normal wear and tear of a somewhat busy store, if that makes any sense LOL. It does have the Premium Fresh & Healthy Decor package and is a pretty nice store. Traffic was consistent but not busy, I'd say a bit more traffic than Mt. Holly which has the Albertsons Marketplace Decor package and is in need of some attention, at least the floor tiles and ceiling tiles are.
ReplyDeleteBottom Dollar may seem like a viable competitor, but just keep this in mind - the chain has YET to turn a profit. Delhaize keeps pumping Food Lion, Sweetbay, and Hannaford money into it, though.
ReplyDelete