Kroger coming to OKC
Looks like Kroger may be coming to OKC if they buy out Albertson's. What do you guys think about this? Personally, I like Kroger stores, but I don't really think they're any more upscale than an Albertsons. I do agree with what one lady said in the article. I think those savings cards that Albertsons and Homeland has are a waste of time and money. Instead of spending the money to manage that system, why don't they simply lower prices?
------------------
"Kroger makes a bid for Albertsons stores
The word on Wall Street is that Kroger has offered a takeover bid for Albertsons. The news caused both company's stocks to rise over the last few days of trading.
Also on the table are offers from drugstore chains Walgreen Co. and CVS Corp., the Wall Street Journal and New York Times reported Monday. The offers are all for more than $20s per share, which would value the deal at more than $10 billion, with the assumption of $6.5 billion of debt.
Shares of Boise, Idaho-based Albertsons gained $1.19, or 4.95 percent, to $25.25 on the New York Stock Exchange. Meanwhile, Kroger shares rose 27 cents to $20.07 on the Big Board.
Albertsons declined comment, and calls were not returned Monday by Kroger, CVS and Walgreens.
Jake Dollarhide, chief executive officer of Longbow Asset Partners in Tulsa, said a Kroger takeover for Oklahoma would just mean one big national grocery chain buying another big national grocery chain.
"You would assume the number of locations would stay the same, and with a more stable company like Kroger, the chain might actually grow," he said.
Dollarhide said Cincinnati-based Kroger is the nation's largest traditional grocer. He pointed to the company's large acquisitions in the 1990s and their large presence in Dallas as indicators that they would be a logical buyer for the Albertsons chain.
"From a strategic footprint it makes sense," he said.
The move may mean little else for the state, however.
Lorrie Griffith, editor of the Southwest and Southeast editions of grocery trade magazine the Shelby Report, said both stores are extremely similar, each operating about 2,500 stores -- Albertsons in 37 states and Kroger in 32.
"This may not mean significant changes other than different labels on products. In terms of general Kroger stores, they focus on service and one-stop shopping. Their slogan is 'right store, right price,' so they'll try to stay competitive with price," Griffith said.
But she conceded the chain still won't be able to keep the prices low overall compared with Wal-Mart, which has 50 percent of Oklahoma's market share.
Dollarhide said the grocery business is extremely competitive with margins shrinking to a low single digit year-to-year increase.
"If you can bring shoppers through the doors with weekly promotional ads to buy the milk, bread and bananas, then you can try to sell them higher margin items like meats, paper products, toys, holiday items, bakery and floral," he said. "You're probably looking at grocery stores who would like to bring shoppers into their pharmacies or their photo mats. Grocery stores don't grow rich serving the coupon clippers."
In Oklahoma, Albertsons has about 3,500 employees between 31 grocery stores and a Ponca City distribution center. Nationwide, Albertsons and subsidiaries operate about 2,500 stores in 37 states and employ approximately 240,000 associates. Its banners include Albertsons, Acme, Shaw's, Jewel-Osco, Sav-on Drugs, Osco Drug, and Star Markets, as well as Super Saver and Bristol Farms, which are operated independently.
Consumer Karen Loerwald said she could live without either Albertsons or Kroger.
"Albertsons, Kroger and other major chain stores seem to be hard set on forcing those stupid 'Frequent User Store Cards' down people's throats and you have to use them to get a lower price that is never as low as Wal-Mart, nor is it even a good value. I personally find the cards a nuisance and a waste of the company's money keeping up with them.
"My family and I recently moved here from out of state and have shopped at several stores in the area as well as where we lived. The only stores that seem to be competing with Wal-Mart that I have found are Crest, Homeland, Target and two that are not here called HEB and United.""
Originally Posted by upisgr8
Bookmarks