News Break:
ALBERSTONS TO ACQUIRE
WHOLE FOODS?
ALBERSTONS TO ACQUIRE
WHOLE FOODS?
Another week, another rumor about which supermarket chain Alberstons is looking to snap up next! (Maybe they should just work on improving the ones they currently own before taking on any more troubled chains but that's just my opinion) Whole Foods is currently very vulnerable to a takeover and word is that numerous companies, including Kroger, Publix and even Amazon, have shown interest. Confirmation of Alberstons exploring the possibility of acquiring Whole Foods has gained traction in the past few days. You can find plenty of articles online but I'm linking to The Morning Call which has one of the better headlines... "Report: Acme parent company considers takeover bid for Whole Foods". You can check it out by clicking here.
That's just crazy, and kind of stupid.
ReplyDeleteAs much as I would like them to be the same company, I agree that Albertsons needs to get its priorities straight. Many of their stores need some form of improvement, and they are already saddled with a load of debt. That being said, I would much rather have them own Whole Foods than Kroger or Amazon. Publix, I would be okay with.
ReplyDeleteKinda reminds me of when A&P bought Pathmark. Bad move.
ReplyDeleteActually, It makes sense.The days if just running a conventional supermarket are coming to a close. You have to do something toztand out. Acme has its Meat Departments and their Butcher Blocks, but if you ad the specialties that that chain offers ,it only helps to improve Acme. That is unlike the Pathmarks ,A&,P merger.
ReplyDeleteBut specialty chains like Whole Foods and The Fresh Market haven't been doing so hot as people are either watching their pennies or picking up their organic products at regular grocery stores (or cheaper alternatives like Aldi, Trader Joes, and even Wegmans). Unless Albertsons plans on buying Whole Foods and drastically lowering prices (which we haven't really seen with the combined Albertsons/Safeway thus far), a purchase of Whole Foods makes zero sense to me.
DeleteWhole Foods doesn't have a clue about pricing, which is why shoppers just go to Trader Joe's or buy organic from their regular supermarket now. Albertsons doesn't have a clue with pricing either. Perfect together lol
ReplyDeleteWhole Foods does do some things that most supermarkets and Trader Joe's don't do. They have a wonderful unique bakery selection. I have finally found a reliable source of brioche. They also have excellent pizza. Most grocery store pizza is questionable. They are on Wegmans level with their pizza and other fresh offerings. They just aren't price competitive to lure people away from doing their natural/organic shopping at traditional grocery stores. Those areas are growing in sales but Whole Foods isn't capturing that growth.
DeleteThere are people that have higher incomes and can afford to be loyal Whole Foods weekly shoppers. But most shoppers today shop on price and don't necessarily take other amenities into consideration. Which is why Walmart's factory packaged meat does so well when you could go to an Acme and get fresh cut/ground meat. How many people are really loyal to a store or chain now? There are multiple choices in an area so you can cherry pick what you want from each chain. Besides, Albertson's is going to need to be prepared when Lidl moves into their territory in the Mid-Atlantic. They are expected to be a big game changer.
Have to disagree about Whole Foods being on Wegmans level. Whole Foods is FAR superior in fresh offerings. Wegmans selection looks good at first glance but it's not really as great as everyone thinks it is. Their fresh pizza is inedible. Soups are TERRIBLE. They do slightly beat Whole Foods in the bakery but just slightly.
DeleteI'm taking a wait and see approach to Lidl. Remember how Fresh & Easy was going to decimate the West Coast and Bottom Dollar was going to leave a path of destruction in the Philly and South Jersey? Where are they now???
Acme is struggling like heck, they don't need more lol.
ReplyDeleteI have to admit, I love The Fresh Market. The prices are sky high, but the food is fantastic and they have some very unique items.
ReplyDeleteThe Fresh Market is now supplied by Supervalu if that means anything.
DeleteWhy take on a chain with a heavy debt load, especially when their weekly sales are down? Albertsons has no idea how to turn a struggling chain around, especially a niche chain like "Whole Paycheck" sometimes smaller is better. The only Acme markets in Westchester and Putnam that do any sort of weekly business are those with zero competition. Patterson, Mahopac, Mohegan Lake, Hopewell Jct., and Pleasant Valley are being slaughtered by ShopRite and Stop&Shop! Acme and S&S are at war because they both offer 10 dollars off 100 coupons every week in their circulars! People do not want gimmicks, monopoly games, double gas point cards at expensive gas stations, or crazy " buy 10 items and save 4 dollars" sales. They want low prices and good selection. The latter of which Acme has but low prices they don't. The remodeled stores are beautiful but empty.
ReplyDelete