Last Genuardi's store closes in Audubon

The last operating Genuardi's supermarket, in the Audubon Village Shopping Center in Audubon, PA, closed on May 27. According to a store employee, the lease expired and another operator may take over in the location.

Genuardi's, once a popular chain in the Greater Philadelphia Region, was purchased by Safeway in 2001, and in recent years the stores had been closed or sold, and converted to a Giant or Weis supermarket.

Safeway confirms that it may sell

In October I wrote about a published report that claimed Cerberus was looking into a takeover of all or part of Safeway. Yesterday Safeway confirmed that discussions were taking place involving a possible sale of the company.

In a statement, the company said it "has not reached an agreement on a transaction, and there can be no assurance that these discussions will lead to an agreement..."

Last year Safeway sold its Canada and Dominick's divisions, and before that sold or closed all of its Genuardi's stores except one (Audubon, PA).

Safeway to dispose of Dominick's chain in Chicago

Safeway announced last week that it plans to dispose of its 72 Dominick's supermarkets in the Chicago area. Safeway is also the parent company for Genuardi's, which recently exited the Philadelphia market (with the exception of one yet-to-close store in Audubon, PA).

Dominick's had a loss of $31.5 million for fiscal 2012, and losses are projected to increase this year. Safeway said that selling the chain will likely result in a cash-tax benefit of between $400 - $450 million that it will use to offset expenses from the recent sale of its Canadian assets.

In a separate report, Safeway said there has been interest from several parties for Dominick's, and the company seeks to exit the Chicago market by early 2014.

According to Safeway President and CEO Robert Edwards, "Everything we do is designed to maximize shareholder value, and the sale of Canada, the partial IPO of Blackhawk, and now the decision to leave Chicago demonstrates that commitment."

Audubon store to be last Genuardi's standing

It appears that by the end of the year there will be one Genuardi's grocery store left. With the Evesham, Egg Harbor and Barnegat stores slated to close soon, Audubon, PA will be home to the only remaining Genuardi's.

Earlier this year, Genuardi's closed stores in Royersford, Exton and Norristown. Over the summer, 15 Genuardi's transitioned to Giant, three to Weis and one to McCaffrey's. In August, the Cherry Hill site closed. That left four stores, three of which are closing, as mentioned above.

In a recent article the Audubon store manager said his supermarket is in it for the long hall, but that doesn't seem likely. Besides, Safeway's Eastern Division President Steve Neibergall said months ago that the company has decided to exit the Philadelphia market.

Genuardi's... and then there were 4

Five Genuardi's stores transitioned to Giant last week and 10 more will transition later this month. Three Genuardi's stores reopened as Weis supermarkets last month, and one will be a McCaffrey's within a couple weeks. For those (like me) keeping score, that leaves five open and operating.

Next month it'll be down to four. The Cherry Hill Genuardi's, located in Ellisburg Circle Shopping Center, will close on August 4, according to published reports. Safeway couldn't find a buyer for the store, and is still looking for buyers for the remaining supermarkets in New Jersey (Barnegat, Egg Harbor, Evesham) and Audubon, PA.