Monday, May 11, 2015

Can Safeway and Marsh Grocery Stores Survive?

What happens to grocery stores that are too slow to move forward with consumers?  What happens when grocery store slotting fees line the P&L and unwanted products line the shelves? Is that what is happening to Safeway and Marsh stores?

The long slow decline of the grocery sector is something to behold.  Today could the decline be catching up with two companies Safeway and Marsh stores?  We all know what happened to A&P today two retailers appear to be joining the ranks.  Safeway sold of its Canadian store a couple of years ago.   Then Safeway closed Chicago and sold stores this weekend Safeway announced that they are closing 9 units in Denver, Colorado by the middle of June, 2015. 

Marsh on the other hand Marsh has reduced store counts repeatedly since Florida-based Sun Capital Partners acquired it in 2006. The company now has 74 groceries, down 36 percent from the 116 it operated back then. The latest round of closings, announced in April, was the second since the start of 2014.

Can Marsh make it?  Industry icon and largest traditional grocer in the US
Kroger announcement late last month that it plans to spend $465 million to expand and upgrade its Indianapolis store base in an unprecedented investment that will include construction of 11 new locations and expansions or re-modeling of 22 others. Yes you guessed it.  They are targeting Marsh customers.

Our Grocerant Guru™ asks are slotting fees to blame for legacy retailers inability re-size, re-product, and re-focus? Will Safeway and Marsh simply fade away?  Do you need Outside Eyes to Look A Customer Ahead?

Since 1991 retail food consultancy Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche for more on Foodservice Solutions® Would you like a Grocerant Scorecard? Visit:, or Facebook

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