Albertsons LLC

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Albertson's LLC
Company typePrivate
IndustryRetail
Founded2006
HeadquartersBoise, Idaho, U.S.
Number of locations
1069[1]
Key people
Robert Miller, CEO
ProductsBakery, dairy, deli, frozen foods, general grocery, meat, pharmacy, produce, seafood, snacks, liquor
RevenueUS$6.0 billion (2007)
Number of employees
234,000 (2006)
WebsiteAlbertsons.com

Albertson's LLC (formerly known as Albertsons Market) is a North American grocery company based in Boise, Idaho, with 1069 [2] supermarkets located in Arizona, New Mexico, Colorado, Texas, Louisiana, Arkansas, Florida, Delaware, Maryland, New Jersey, Pennsylvania, California, Idaho, Montana, North Dakota, Nevada, Oregon, Utah, Washington, Wyoming, Illinois, Iowa, Indiana, Wisconsin, Massachusetts, Maine, New Hampshire, Rhode Island, and Vermont under the Albertsons, Acme Markets, Jewel-Osco, Lucky Stores, Osco Pharmacy, Sav-on Pharmacy, Super Saver Foods, and Shaw's and Star Market banners.[3] While Albertson's LLC is majority-owned by Cerberus Capital Management, the Albertsons name as of March 21, 2013 is now owned in full by Albertsons LLC; thus combining the Albertsons Inc. and Albertsons Market names.

On January 9, 2013, Cerberus Capital Management announced they would be acquiring the remaining Albertsons stores from SuperValu along with the Jewel-Osco, Acme, Shaw's, and Star Market chains in exchange for $100 million in cash and $3.2 billion in SuperValu debt. As of March 21, 2013, Albertsons LLC owns all of the Albertsons chain as well as adding Jewel-Osco, Acme, and the Shaw's/Star Market combined chain back into its fold (the original Albertsons chain having acquired American Stores, the parent of Acme and Jewel-Osco, in 1999).

Supermarket News ranked Albertson's LLC No. 24 in the 2008 "Top 75 North American Food Retailers" based on 2007 fiscal year estimated sales of US$6.0 billion.[4]

Background

States with Albertsons-owned locations

Albertson's LLC is one of the successor companies to Albertsons, Inc. Albertsons was founded by Joe Albertson in 1939 in Boise, Idaho, USA. The store was filled with perks that, at the time, were brand new: free parking, a money-back guarantee, and even an ice cream shop. The store was located at 16th and State Streets in downtown Boise. Over the next 60 years, Albertsons grew from a single store in Idaho to a chain of nearly 1,000 stores in a far-flung territory covering 23 states from coast to coast. Throughout its history, most of the company's growth had been piecemeal, opening new stores in established markets and moving into adjacent markets as opportunities presented themselves. In the late 1990s, Albertsons, Inc. changed direction, embarking on a series of acquisitions culminating with the purchase of American Stores in 1999. With that acquisition, Albertsons briefly became the largest American supermarket chain, with over 2,500 stores in 40 states.

The supermarkets acquired by Albertsons, Inc. in the 1990s and 2000s included Buttrey Foods in Montana, Wyoming, and North Dakota, Lucky Stores in California, Nevada, and New Mexico, Jewel-Osco stores in Illinois, Indiana, Iowa, and Wisconsin, Acme Markets in Pennsylvania, Maryland, New Jersey, and Delaware, Seessel's in Tennessee, Mississippi, and Arkansas, and Shaw's and Star Markets in New England, among others. In addition, the American Stores acquisition put Albertsons in the stand-alone drug store business for the first time, with its Osco and Sav-on Drug stores.

The acquisition spree caused significant problems for Albertsons, Inc. Many of the acquired chains had systems that did not mesh well with Albertsons. Financing those acquisitions required Albertsons Inc. to take on significant debt. Added to those problems were significant changes in consumer buying patterns, including new competition from large discounters such as Walmart and Costco that impacted sales. After several reorganizations and waves of store closings, on January 23, 2006, Albertsons, Inc., agreed to be acquired by SuperValu, a Cerberus-led group of investors, and CVS Pharmacy. The acquisition was completed on June 2, 2006 with the Cerberus-led group (who also included Kimco Realty Corporation, Schottenstein Stores Corp., Lubert-Adler Partners, and Klaff Realty) acquiring 661 stores and the distribution centers and offices from five of Albertsons divisions. These five divisions were thought to be Albertsons' five weakest divisions, and conventional wisdom in the industry was that the stores would eventually be closed or sold to other operators.

Chains

Albertsons LLC operates stores under the following banners:

Reorganization

The five Albertsons Inc. divisions that became Albertson's LLC in 2006 were the Dallas/Fort Worth division (Texas (except El Paso), Oklahoma, Louisiana, and Arkansas), the Rocky Mountain division (Colorado, Wyoming, Nebraska, and South Dakota), the Southwest division (Arizona, New Mexico, and El Paso, Texas), the Florida division (Florida), and the Northern California division (northern California and northern Nevada). Albertson's LLC has concentrated on rebuilding market share and its store base in its strongest areas and divesting stores and other property in its weaker areas.

On June 6, 2006, only one week after Albertson's LLC was created, the company announced its intent to close 100 Albertsons stores by August 2006.[5] Those closures were spread across all five divisions. Soon after, the company announced that it would be shutting down its online delivery service on July 21, 2006.[6]

In June 2007, Albertson's LLC decided to discontinue its Preferred Savings Card Program, choosing instead offer discounted items to all of its customers.[7] In September 2007, all Albertsons stores in the Dallas/Fort Worth, Texas, and Florida markets began collecting their Albertsons Preferred Savings Cards.[8]

Albertsons Express fuel centers

On May 5, 2008, Albertson's LLC announced the sale and divestiture of all 72 of the Albertsons Express fuel centers to San Antonio, Texas-based Valero Energy Corporation. Most of the Albertsons Express stores were located in the Phoenix, Arizona; Denver, Colorado; Baton Rouge and Lafayette, Louisiana; and Dallas-Ft. Worth markets. The transaction was completed in August 2008. Valero converted the acquired locations into Valero Corner Stores.

Northern California Division

On November 27, 2006, Albertson's LLC and Save Mart Supermarkets announced their agreement for Save Mart to acquire Albertsons' Northern California and Northern Nevada locations. Save Mart began operating the 132 new stores as of February 2007.[9] Save Mart gradually converted all the stores to its Save Mart banner, except for stores in the San Francisco Bay Area, which were rebranded as Lucky Stores. Most of these stores had originally been Lucky Stores before Albertsons Inc. acquired American Stores in 1999.

Dallas-Fort Worth Division

A typical Albertsons store in Dallas, TX

Albertson's LLC announced in December 2006 that it would be closing five unprofitable stores in North Texas. The closures left the company with 78 stores in the Dallas-Fort Worth market.[10] The company announced on January 29, 2007 that 11 more stores in Texas would be closed, including six in the Dallas area and two in the Austin area. After the closures, Albertsons was down to 71 stores in Dallas-Fort Worth and 93 in Texas.[11] On September 12, 2007, Albertson's LLC announced that it would exit the Austin, Texas, market by selling its three remaining units to H-E-B, along with two previously shuttered facilities.

On June 19, 2007, Albertson's LLC announced plans to exit the Oklahoma market, closing or selling all 26 stores in the state. Also, the Dallas-Fort Worth division outsourced their grocery distribution operations by selling their Fort Worth Distribution Center to Associated Wholesale Grocers.[12] A large number of former stores reopened under the banner of Food Pyramid.

On May 28, 2008, Albertson's LLC announced plans to close one of its two remaining stores in College Station, Texas.[13]

In January 2011, Albertson's LLC announced plans to close 7 more stores in Texas, including 5 in the DFW Division. These stores included #4288 in Southlake, #4209 in San Angelo, #4208 in Tyler, #4147 in Plano, #4125 in Richardson, #4118 in Garland, and #4107 in Carrollton. All 7 stores permanently closed in mid-late February 2011.

In August 2011, H-E-B announced it had acquired three Albertson's LLC locations in Texas: Kerrville, New Braunfels, and College Station. All three locations closed in October 2011. Only one of the three locations was renovated and reopened (Kerrville), while the other two were leased to other retailers.[14][15][16]

Southwest Division

In January 2007, store closings were also announced for Arizona, including eight Albertsons and two Grocery Warehouse stores.[17]

On June 12, 2007, Albertson's LLC agreed to acquire all Raley’s locations in New Mexico. The acquisition includes one closed and eight operating stores in Albuquerque and one store in Taos, thus doubling Albertson's store base in the Albuquerque region.[18] These stores were originally Albertsons and Lucky stores that the former Albertsons Inc. was required to divest in 1998 when it merged with American Stores.

In February 2009, Albertson's LLC closed a Mesa, Arizona, Albertsons at Stapley and University.

Rocky Mountain Division

In January 2007, Albertson's LLC announced an additional nine store closings in Colorado.[19]

On December 19, 2007 SuperValu Inc. agreed to acquire the eight remaining Albertsons stores from Albertson's LLC in Wyoming not already owned by the company. These include stores in Casper, Cheyenne, Cody, Gillette, Laramie, and Sheridan. These stores continue to operate under the Albertsons banner [20]

In February 2008, Albertson's LLC sold two stores in Scottsbluff, Nebraska and Rapid City, South Dakota to Nash Finch Company.[21] The sales marked the withdrawal of the Albertsons nameplate from both states.

On August 24 and 25, 2009, Albertson's LLC announced plans to close a total of nine stores and one distribution center. The closings included five stores and one distribution center located in Colorado.[22][23] The company planned to support the remaining Colorado stores from its Tolleson, Arizona distribution center.

Florida Division

A former Albertsons location in St. Petersburg, Florida, now operating under the Publix Super Markets banner.

On February 3, 2008, Albertson's LLC announced that they were closing all three Albertsons stores in Tallahassee, Florida. One of the locations was destroyed and converted into a Kohl's; another became a Publix store. The third location sits abandoned.

On June 9, 2008, Albertson's LLC entered into an agreement with Lakeland, Florida-based Publix stores to sell 49 Albertsons stores in Florida to Publix. This included 15 stores in Northern and Northwest Florida, 30 locations in Central Florida, and four locations in South Florida. The sale was completed in September.[24]

Four more store closings were announced for stores located Florida by the end of October 2009.[25]

On October 5, 2009, Albertson's LLC announced plans to close 3 stores in the Orlando, FL area. The stores located at John Young Parkway and Highway 192 in Kissimmee, Orange Blossom Trail and Deerfield Ave in South Orlando, and the store located at Curry Ford Road and Semoran Ave were all sold to Sedano's Supermarket. These Albertsons closed January 3, 2010, with the take over by Sedano's January 7, 2010.[26]

In January 2010, Albertson's LLC announced plans to close 8 more stores in the Florida Division. The stores closed included #4360 in Pembroke Pines, #4371 in Boca Raton, and #4383 in Delray Beach, as well as stores in Melbourne, Oviedo, Sanford, Loxahatchee, and Lake Worth. All the stores permanently closed in early February 2010. The closings left Albertson's LLC with 20 stores in the Florida Division.

In August 2011, Albertson's LLC announced it was closing three more Florida stores. They are store #4314 (Gainesville), #4326 (Tampa), and #4373 (Mt. Dora).[27]

In April 2012, Albertsons announced the closure of 13 more Florida stores and the chain's Plant City distribution center.[28] The closures will leave Albertson's LLC with only 4 stores remaining in Florida.

See also

References

  1. ^ Albertsons New Mexico Stores Ceasing Fireworks Sales, Donating to Fire Efforts
  2. ^ [1][dead link]
  3. ^ More Albertsons Closings Announced - Morning News Beat, June 14, 2006
  4. ^ 2008 Top 75 North American Food Retailers, Supermarket News, Last accessed January 23, 2008.
  5. ^ Albertsons to close 100 of its stores Deseret News (Salt Lake City), June 8, 2006
  6. ^ Albertson's LLC to Close Shutter Online Shopping Service Progressive Grocer/AllBusiness.com, Thursday, July 13, 2006
  7. ^ Albertsons to discontinue loyalty cards today, The Arizona Republic, June 20, 2007.
  8. ^ Albertsons's ditches loyalty cards, Dallas News.com, Wednesday, September 27, 2007.
  9. ^ Albertsons is sold in Northern California AllBusiness, November 28, 2006
  10. ^ Albertson's LLC to Close Five Texas Stores, Supermarket News, December 4, 2006.
  11. ^ Albertsons to close 6 D-FW stores, The Dallas Morning News, January 29, 2007.
  12. ^ Albertson's is leaving Oklahoma, The Dallas Morning News, June 20, 2007.
  13. ^ One Albertsons in CS is closing, The Eagle, May 29, 2008.
  14. ^ H-E-B acquires three Albertsons stores in Texas, San Antonio Express-News, August 20, 2011
  15. ^ H-E-B buys three Alberstons stores in Texas, San Antonio Business Journal, August 19, 2011
  16. ^ HEB buys Albertsons in New Braunfels; to offer building for lease, New Braunfels Herald-Zeitung, August 19, 2011
  17. ^ Oro Valley Albertsons to close; employees keep jobs, Arizona Daily Star, January 24, 2007.
  18. ^ Albertson's LLC to Acquire Raley's New Mexico Stores, PR Newswire, Wednesday, June 13, 2007.
  19. ^ Albertsons to close nine stores, Rocky Mountain News, January 20, 2007.
  20. ^ Supervalu will acquire Albertsons stores, The Casper Star Tribune, December 20, 2007.
  21. ^ Nash Finch to Buy Rapid City Albertsons, Rapid City Journal, February 15, 2008.
  22. ^ Albertsons chain closing 5 stores in Colorado, The Denver Post, August 25, 2009.
  23. ^ Albertsons closing 5 Denver-area stores, Denver Business Journal, August 25, 2009.
  24. ^ Publix buying 49 Albertsons Stores AllBusiness Monday, June 9, 2008
  25. ^ Albertsons to close four Florida stores, South Florida Business Journal, August 24, 2009.
  26. ^ Sedano's supermarkets expanding to Orlando, Miami Herald, November 7, 2009.
  27. ^ Estee Beck (2011-08-25). "Final Albertsons grocery store in Gainesville to be closed". The Independent Florida Alligator. Retrieved 2011-08-26. {{cite web}}: Italic or bold markup not allowed in: |publisher= (help)
  28. ^ Jennifer Rich (2012-04-11). "Albertsons to close 13 Florida stores". The Bradenton Herald. Retrieved 2012-04-11. {{cite web}}: Italic or bold markup not allowed in: |publisher= (help)

External links

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