Target announced earlier this month that it plans to acquire Shipt, an Instacart competitor that currently serves 72 US markets and delivers products to customers from supermarket chains including H-E-B, Harris Teeter and Meijer, among others. Target has agreed to pay $550 million for the company and expects to roll out same-day delivery services to half of its stores by early 2018.
Shipt customers currently pay $99 annually for unlimited deliveries. Instacart's fee is $149.
Target said that Shipt would conitnue to run its business independently. The transaction is expected to close by the end of the year.
Showing posts with label Harris Teeter. Show all posts
Showing posts with label Harris Teeter. Show all posts
Tuesday, December 26, 2017
Saturday, May 6, 2017
Real estate experts question Lidl's planned store locations
Real estate experts that spoke with Supermarket News last month expressed skepticism over Lidl's real estate choices. Douglas Munson and John Tippetts, former Kroger real estate staffers and co-founders of MTN Retail Advisors, said that about 70% of what they identified as the first 75 stores that Lidl intends to open lack the ingress and egress of a typical "Class A" supermarket location.
In addition, Munson and Tippetts believe that the sites appear to have been selected with a lack of insight into the volume of the competitors in the immediate trade areas.
Site Specialist Matthew P. Casey expressed similar concerns.
"I don't think they evaluated competition beyond doing things like looking at the number of cars in the parking lot," Casey said.
Lidl says that it plans to address quality and price in a manner that existing U.S. markets are not.
Munson predicted that Lidl will attract "the wrong people" and end up being more like a Weis Market or Food Lion rather than a Harris Teeter.
"You have to realize that the average Food Lion is doing $175,000 a week and the average Harris Teeter is doing $450,000. If you assume you're hitting Harris Teeter and you wind up hitting Food Lion, you're taking a much, much smaller piece of the pie."
On the other hand, Mark Thompson, managing director at Crossman & Co., said Lidl's site choices don't surprise him.
"Look what Wawa did in Florida," he said. "They went off hard corners to midblock and where they are at a hard corner it's a 'B' corner, yet all the pumps are full. Their model blew the market away. If Lidl's model blows the market away then people will shop."
In addition, Munson and Tippetts believe that the sites appear to have been selected with a lack of insight into the volume of the competitors in the immediate trade areas.
Site Specialist Matthew P. Casey expressed similar concerns.
"I don't think they evaluated competition beyond doing things like looking at the number of cars in the parking lot," Casey said.
Lidl says that it plans to address quality and price in a manner that existing U.S. markets are not.
Munson predicted that Lidl will attract "the wrong people" and end up being more like a Weis Market or Food Lion rather than a Harris Teeter.
"You have to realize that the average Food Lion is doing $175,000 a week and the average Harris Teeter is doing $450,000. If you assume you're hitting Harris Teeter and you wind up hitting Food Lion, you're taking a much, much smaller piece of the pie."
On the other hand, Mark Thompson, managing director at Crossman & Co., said Lidl's site choices don't surprise him.
"Look what Wawa did in Florida," he said. "They went off hard corners to midblock and where they are at a hard corner it's a 'B' corner, yet all the pumps are full. Their model blew the market away. If Lidl's model blows the market away then people will shop."
Thursday, April 20, 2017
Shipt to begin Costco delivery service
Shipt, a delivery service headquartered in Birmingham, AL, announced late last month that it would start delivering Costco products to customers in Tampa, FL, with plans to expand Costco service to 50 markets by the end of the year. Shipt says it is already working with Whole Foods, H-E-B, Harris Teeter and Meijer.
For a $99 annual fee, Shipt customers will get unlimited Costco deliveries, and will have a one-hour window for when merchandise is dropped off. The company says it plans to deliver from stores, not from warehouses.
Thursday, March 6, 2014
Report says Kroger may be disrupting Safeway-Cerberus deal
3/7/14 Update: Cerberus to merge Albertsons with Safeway in $9 billion deal
In contrast to my post on Tuesday that said Kroger may work with Cerberus to take some Safeway stores the private equity firm might not want if they were to buy Safeway (Kroger could be a player in Safeway sale), a story in The Wall Street Journal online yesterday reported that Cerberus' efforts to purchase Safeway have been complicated by Kroger's involvement.
According to the story, Cerberus, which last year purchased Supervalu's Albertsons and Acme chains, among others, had been hoping to make a deal for Safeway this week. However, Kroger, the largest supermarket chain in the country, is now considering a bid on its own for all or part of Safeway. Cerberus is still seen as the most likely buyer, as Kroger could face antitrust issues in areas where the two companies compete.
The Wall Street Journal reports that Cerberus is offering to pay about $40 per share for Safeway, which would make the deal worth approximately $9 billion.
Cerberus and Kroger recently competed for Harris Teeter Supermarkets, and Kroger emerged victorious, paying $2.4 billion for the chain.
Safeway currently operates more than 1,300 stores in the West, Southwest, Rocky Mountain and Mid-Atlantic regions. In the last two years, the company sold or closed all but one of its Genuardi's stores. Last year it sold its Canadian division and closed or sold its 72 Dominick's stores in Chicago.
In contrast to my post on Tuesday that said Kroger may work with Cerberus to take some Safeway stores the private equity firm might not want if they were to buy Safeway (Kroger could be a player in Safeway sale), a story in The Wall Street Journal online yesterday reported that Cerberus' efforts to purchase Safeway have been complicated by Kroger's involvement.
According to the story, Cerberus, which last year purchased Supervalu's Albertsons and Acme chains, among others, had been hoping to make a deal for Safeway this week. However, Kroger, the largest supermarket chain in the country, is now considering a bid on its own for all or part of Safeway. Cerberus is still seen as the most likely buyer, as Kroger could face antitrust issues in areas where the two companies compete.
The Wall Street Journal reports that Cerberus is offering to pay about $40 per share for Safeway, which would make the deal worth approximately $9 billion.
Cerberus and Kroger recently competed for Harris Teeter Supermarkets, and Kroger emerged victorious, paying $2.4 billion for the chain.
Safeway currently operates more than 1,300 stores in the West, Southwest, Rocky Mountain and Mid-Atlantic regions. In the last two years, the company sold or closed all but one of its Genuardi's stores. Last year it sold its Canadian division and closed or sold its 72 Dominick's stores in Chicago.
Friday, December 27, 2013
"Banner Churn" of 2013 may continue into 2014
Supermarket News published an informative year-end story about the many changes that took place this year in the food retail industry. They called it a year of "banner churn."
The article starts by pointing out that the "big three" made major moves. Kroger agreed to buy Harris Teeter, Safeway sold its Canada division and announced that its closing its Dominick's chain in Chicago (only a year after closing all but one of the company's Genuardi's stores), and Supervalu sold 877 stores - including the Albertsons and Acme chains - to an investment group led by Cerberus that includes Kimco and Philadelphia's Lubert Adler.
Regarding the Supervalu deal, Albertsons Chief Executive Robert Miller told Supermarket News that "we're in this for the long haul," and that "we have no plans to sell any of the brands."
Whether Miller is being truthful, or simply truthful for now, is yet to be seen. There are many that don't believe the company will hold on to Acme - or at least the banner's many underperforming stores - for very long.
As for the industry's future, Irene Marks and David Mell of Wells Fargo believe "consolidation and capital markets activity will remain robust well into 2014 as the grocery industry continues to evolve to suit today's eclectic, diverse and conscientious consumer."
To read the Supermarket News story, click here.
The article starts by pointing out that the "big three" made major moves. Kroger agreed to buy Harris Teeter, Safeway sold its Canada division and announced that its closing its Dominick's chain in Chicago (only a year after closing all but one of the company's Genuardi's stores), and Supervalu sold 877 stores - including the Albertsons and Acme chains - to an investment group led by Cerberus that includes Kimco and Philadelphia's Lubert Adler.
Regarding the Supervalu deal, Albertsons Chief Executive Robert Miller told Supermarket News that "we're in this for the long haul," and that "we have no plans to sell any of the brands."
Whether Miller is being truthful, or simply truthful for now, is yet to be seen. There are many that don't believe the company will hold on to Acme - or at least the banner's many underperforming stores - for very long.
As for the industry's future, Irene Marks and David Mell of Wells Fargo believe "consolidation and capital markets activity will remain robust well into 2014 as the grocery industry continues to evolve to suit today's eclectic, diverse and conscientious consumer."
To read the Supermarket News story, click here.
Friday, November 1, 2013
Could Weis Markets be Kroger's next acquisition?
An October 21 story on Cincinnati.com about Kroger's growth plans specifically mentions A&P and Weis as possible acquisition targets for the nation's largest supermarket chain. In the past year, Kroger executives have indicated a willingness to grow, potentially through more acquisitions. The company is about to close on a $2.5 billion purchase of Harris Teeter.
Although A&P and its 320 stores could reportedly be available for between $500 million to $1 billion, most analysts agree that Kroger would prefer to pursue a healthier company. And Weis, which has experienced strong financials results in recent years, is considered cheap when measured by its price-to-earnings ratio.
Weis, which operates 165 stores in PA, MD, NJ, NY and WV, is undergoing a management change, as CEO David Hepfinger recently left to pursue other interests. Vice Chairman Jonathan Weis is now the CEO on an interim basis.
According to the Cincinnati.com story, analysts say family-controlled companies become more likely to sell out to a larger player when a third generation family member assumes control. Currently, 47 percent of Weis is owned by Robert Weis, the 93-year-old son of the company's co-founder.
Analyst Joseph Feldman of Telsey Advisory Group added that companies with families owning large stakes could make a deal very easy or shut it down, depending on their wishes.
Although A&P and its 320 stores could reportedly be available for between $500 million to $1 billion, most analysts agree that Kroger would prefer to pursue a healthier company. And Weis, which has experienced strong financials results in recent years, is considered cheap when measured by its price-to-earnings ratio.
Weis, which operates 165 stores in PA, MD, NJ, NY and WV, is undergoing a management change, as CEO David Hepfinger recently left to pursue other interests. Vice Chairman Jonathan Weis is now the CEO on an interim basis.
According to the Cincinnati.com story, analysts say family-controlled companies become more likely to sell out to a larger player when a third generation family member assumes control. Currently, 47 percent of Weis is owned by Robert Weis, the 93-year-old son of the company's co-founder.
Analyst Joseph Feldman of Telsey Advisory Group added that companies with families owning large stakes could make a deal very easy or shut it down, depending on their wishes.
Wednesday, October 23, 2013
Cerberus exploring a deal to takeover Safeway
According to a report from The Chicago Tribune, Cerberus Capital Management is exploring a deal for all or part of Safeway, the second-largest supermarket operator in the U.S. In addition, Supermarket News said this morning that according to a Reuters report, Safeway has engaged Goldman Sachs to explore a potential private equity takeover.
Safeway, which exited the Philadelphia market by selling or closing its Genuardi's stores (with the exception of one remaining store in Audubon, PA) and recently announced that it plans to exit the Chicago market by selling its Dominick's chain, just received clearance from Canada to sell its 212 stores there to Empire Co. for $5.8 billion in cash.
Earlier this year, Cerberus led an investor group that included Kimco in a $3.3 billion acquisition of a group of supermarket chains from Supervalu that included Acme, Albertsons and Jewel-Osco.
Other grocery deals completed this year included Kroger's $2.5 billion acquisition of Harris Teeter, Bi-Lo Holdings $265 million purchase of three Delhaize chains, and Spartan's acquisition of Nash Finch.
Safeway has experience with private equity, as KKR took the supermarket chain private in 1986. KKR sold its stake 13 years later and reportedly made a $7 billion profit.
According to Safeway's website, there are currently over 1,600 Safeway stores in the United States and Canada. Banners include Safeway, Vons, Dominick's, Randalls, Tom Thumb and Carrs.
Safeway, which exited the Philadelphia market by selling or closing its Genuardi's stores (with the exception of one remaining store in Audubon, PA) and recently announced that it plans to exit the Chicago market by selling its Dominick's chain, just received clearance from Canada to sell its 212 stores there to Empire Co. for $5.8 billion in cash.
Earlier this year, Cerberus led an investor group that included Kimco in a $3.3 billion acquisition of a group of supermarket chains from Supervalu that included Acme, Albertsons and Jewel-Osco.
Other grocery deals completed this year included Kroger's $2.5 billion acquisition of Harris Teeter, Bi-Lo Holdings $265 million purchase of three Delhaize chains, and Spartan's acquisition of Nash Finch.
Safeway has experience with private equity, as KKR took the supermarket chain private in 1986. KKR sold its stake 13 years later and reportedly made a $7 billion profit.
According to Safeway's website, there are currently over 1,600 Safeway stores in the United States and Canada. Banners include Safeway, Vons, Dominick's, Randalls, Tom Thumb and Carrs.
Friday, September 20, 2013
Supermarket analysts expect more industry consolidation
Supermarket analysts gathered at the 18th annual Supermarket News Analysts Roundtable in New York earlier this week and agreed that a new wave of consolidation will hit the industry in the near future, and that Kroger may lead the way as a buyer.
In the last two weeks two major deals have been announced: Albertsons LLC agreed to purchase United Supermarkets, and Yucaipa Cos. is planning to acquire Tesco's Fresh & Easy Neighborhood Market chain (Tesco paying Yucaipa to take on its Fresh & Easy grocery stores).
Analyst Gary Giblen (GMC Capital) said the underlying theme of future consolidation would be defensive, due in large part to the expansion of discounters creating "an impetus for companies to get bigger, to get more volume power and hopefully to get some operating synergies and economies of scale."
Scott Mushkin (Wolfe Research) said he expects Kroger, the largest supermarket chain in the United States, to get more aggressive since "the assets available aren't massively expensive, and in many cases Kroger is the most logical buyer."
Meredith Adler (Barclays Capital) pointed out that "really cheap money" promotes consolidation, but doubts there are many companies Kroger would want. She argued that Kroger's pending purchase of Harris Teeter simply shows that if you're a class act, run great stores and have positive comps, then you're an attractive takeover candidate.
The analysts also agreed that Cerberus Capital, which headed the group that acquired Albertsons, Acme and others from Supervalu earlier this year, might continue its involvement in the consolidation process, even though it has its hands full with the banners it bought.
In the last two weeks two major deals have been announced: Albertsons LLC agreed to purchase United Supermarkets, and Yucaipa Cos. is planning to acquire Tesco's Fresh & Easy Neighborhood Market chain (Tesco paying Yucaipa to take on its Fresh & Easy grocery stores).
Analyst Gary Giblen (GMC Capital) said the underlying theme of future consolidation would be defensive, due in large part to the expansion of discounters creating "an impetus for companies to get bigger, to get more volume power and hopefully to get some operating synergies and economies of scale."
Scott Mushkin (Wolfe Research) said he expects Kroger, the largest supermarket chain in the United States, to get more aggressive since "the assets available aren't massively expensive, and in many cases Kroger is the most logical buyer."
Meredith Adler (Barclays Capital) pointed out that "really cheap money" promotes consolidation, but doubts there are many companies Kroger would want. She argued that Kroger's pending purchase of Harris Teeter simply shows that if you're a class act, run great stores and have positive comps, then you're an attractive takeover candidate.
The analysts also agreed that Cerberus Capital, which headed the group that acquired Albertsons, Acme and others from Supervalu earlier this year, might continue its involvement in the consolidation process, even though it has its hands full with the banners it bought.
Friday, July 12, 2013
Kroger to purchase Harris Teeter supermarkets
Cincinnati-based Kroger has agreed to purchase North Carolina-based Harris Teeter for $2.5 billion, or $49.38 per share plus the assumption of $100 million in debt. Kroger is the largest traditional grocery chain in the U.S. with approximately 2,500 supermarkets in 31 states.
According to reports, Kroger likes Harris Teeter's strong position in growing markets, like the Mid-Atlantic and Southeast. Acquiring the company allows Kroger to enter certain markets - like Washington D.C. and Charlotte, NC - less expensively than through new store development.
Kroger is expected to retain the Harris Teeter name, and although Kroger mostly operates unionized stores and Harris Teeter does not, analysts don't believe the Harris Teeter stores would become unionized.
Harris Teeter currently operates over 200 stores in eight states and the District of Columbia.
According to reports, Kroger likes Harris Teeter's strong position in growing markets, like the Mid-Atlantic and Southeast. Acquiring the company allows Kroger to enter certain markets - like Washington D.C. and Charlotte, NC - less expensively than through new store development.
Kroger is expected to retain the Harris Teeter name, and although Kroger mostly operates unionized stores and Harris Teeter does not, analysts don't believe the Harris Teeter stores would become unionized.
Harris Teeter currently operates over 200 stores in eight states and the District of Columbia.
Tuesday, May 28, 2013
Cerberus reportedly looking at Harris Teeter
There were a number of reports last week speculating that Cerberus Capital Management may decide to expand its grocery business by bidding on existing supermarket chains. Cerberus led an investor group earlier this year in the purchase of several Supervalu banners, including Albertsons and Acme.
Much of the recent speculation has focused on Harris Teeter, a publicly-traded chain with about 200 stores on the east coast that has been exploring a potential sale for months. Private equity firm Bain Capital has also been rumored to be looking at the chain.
Tuesday, March 5, 2013
Ahold USA reports sales increase
As compared to the same time period a year ago, U.S. sales at European-based Ahold improved 4.3% in the fourth quarter to $6.1 billion, and identical-store sales improved by 1.4%. Ahold USA includes Giant, Stop & Shop, Martin's Food Markets and Peapod.
For the fiscal year, U.S. sales increased 3.1% to $25.8 billion. Worldwide, Ahold sales totaled $42.9 billion.
The company said it would keep its "eyes and ears open" about potential acquisitions but didn't say anything about Harris Teeter Supermarkets, which has been rumored to be on the sales block. Ahold and Publix are both rumored to be interested in Harris Teeter.
For the fiscal year, U.S. sales increased 3.1% to $25.8 billion. Worldwide, Ahold sales totaled $42.9 billion.
The company said it would keep its "eyes and ears open" about potential acquisitions but didn't say anything about Harris Teeter Supermarkets, which has been rumored to be on the sales block. Ahold and Publix are both rumored to be interested in Harris Teeter.
Monday, September 19, 2011
Wegmans wins top customer service honor
According to a survey of more than 16,000 consumers who ranked grocery stores on various aspects of their customer service, Wegmans had the highest overall score of all U.S. grocery stores. Safeway was tops on the list among Canadian grocery stores.
In the U.S., Trader Joe's, Publix, Harris Teeter and Whole Foods also received high marks. The survey was administered by Empathica Insights of Toronto.
In the U.S., Trader Joe's, Publix, Harris Teeter and Whole Foods also received high marks. The survey was administered by Empathica Insights of Toronto.
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