[jlawrence01]

Originally Posted by Tek_Freek

Village Center has one. Went there once. Freaked at the prices. Never going back.

https://www.google.com/?gws_rd=ssl#q...egas+locations

I went to a couple of them in Tucson and found them to be substantially higher than Safeway stores in the area. I really had no desire to return. In the past month, they closed all three of their Tucson stores.


Here is coverage on the dispute:

MorningNewsBeat

[ElleTea]

Originally Posted by jlawrence01

I went to a couple of them in Tucson and found them to be substantially higher than Safeway stores in the area. I really had no desire to return. In the past month, they closed all three of their Tucson stores.


Here is coverage on the dispute:

MorningNewsBeat

If they are higher than Safeway, they are REALLY expensive!

[jlawrence01]

Originally Posted by ElleTea

If they are higher than Safeway, they are REALLY expensive!

Compared to Phoenix and Las Vegas, Tucson is a pretty expensive place to buy groceries. Now if there was just a Winco Foods in town ...

[Carolina Knight]

Going from 18 stores to approximately 164 in a short period of time is an unhealthy rapid expansion. The results are several stores closing, more stores likely closing, and exits from several markets.

[lvoc]

If you read the details of the complaint it would appear that Haggens is trying to set up a basis to rescind the deal.

Sounds like Haggens bit off more than it can chew and is now trying to either renegotiate the deal or can it.

I wonder if we are not looking at a likely Haggen BK.

[jlawrence01]

Originally Posted by lvoc

If you read the details of the complaint it would appear that Haggens is trying to set up a basis to rescind the deal.

Sounds like Haggens bit off more than it can chew and is now trying to either renegotiate the deal or can it.

I wonder if we are not looking at a likely Haggen BK.

And there are even more allegations:

MorningNewsBeat

[johnp292]

Originally Posted by lvoc

If you read the details of the complaint it would appear that Haggens is trying to set up a basis to rescind the deal.

Sounds like Haggens bit off more than it can chew and is now trying to either renegotiate the deal or can it.

I wonder if we are not looking at a likely Haggen BK.

And the bankruptcy has now been filed. Of course, they are blaming Albertsons for that too. Which is funny, considering they also fired their "Southwest CEO" last week.

[jlawrence01]

Originally Posted by johnp292

And the bankruptcy has now been filed. Of course, they are blaming Albertsons for that too. Which is funny, considering they also fired their "Southwest CEO" last week.

To me, Haggen's purchase was a joke. I have worked on several corporate mergers over the year and it is DIFFICULT to acquire and assimilate a company that is 25-50% of the size of the parent. However, Haggen was acquiring a business 10x its size. Small companes do NOT have the underlying infrastructure to handle that many stores. They would have been better off buying the stores in the region that they were familiar with.

Why not fire their Southwest CEO? They will not have any stores in the region after many of the stores have been shuttered.


One more thing. Ever notice that ANY TRANSACTION that Safeway does seems to turn to dirt. In the late 90s, Safeway acquires Dominick's Finer Foods in Chicago for $1.2B. At the time, they had a dominant market share in the Chicago area. By 2013, they shutter the chain and sell the remnants off for under $200M after turning down larger offers ...

[skugelstadt]

Originally Posted by jlawrence01

To me, Haggen's purchase was a joke. I have worked on several corporate mergers over the year and it is DIFFICULT to acquire and assimilate a company that is 25-50% of the size of the parent. However, Haggen was acquiring a business 10x its size. Small companes do NOT have the underlying infrastructure to handle that many stores. They would have been better off buying the stores in the region that they were familiar with.

Why not fire their Southwest CEO? They will not have any stores in the region after many of the stores have been shuttered.


One more thing. Ever notice that ANY TRANSACTION that Safeway does seems to turn to dirt. In the late 90s, Safeway acquires Dominick's Finer Foods in Chicago for $1.2B. At the time, they had a dominant market share in the Chicago area. By 2013, they shutter the chain and sell the remnants off for under $200M after turning down larger offers ...

The CEO, Shaner was only hired in December. Was expansion his idea or did he just executed the deal poorly?

[PizzaBelly]

Originally Posted by LuisSuarez

Haggen claims Albertsons gave them "inaccurate retail pricing information". How about some due diligence and researching it on your own folks? Six months post merger, and they are still trying to sell merchandise at uncompetitive prices.

Yep, they could have found out from the employees who were changing all the shelf price tags that every single item's new price was significantly higher under Haggen's tags.

Some of their items were even priced higher than at Gelsons and Pavillions in Southern California. So they can't expect former Vons\Albertsons customers in middle class neighborhoods to be to pleased and welcoming. I'm not sure how their stores are in Washington, but the way Haggens is set up, appearance-wise, staff, specialty items, etc, they're definitely going for a higher end type grocery store status than were the stores they bought. They did quite a makeover in the ones I've been to.

In Ventura and Santa Barbara counties in California, they caught some hell for laying off all the developmentally-disabled employees formerly hired by Vons, doing so under the guise that the job classification for the position those workers held (clerk assistant) would no longer exist. But when you go back to the store, those same tasks (bagging groceries, sweeping floors, fetching shopping carts, etc) are still being done, just by different employees who, apparently, are thought to be more becoming to the upscale image Haggen was seeking to demonstrate. IMHO.