Raley's Supermarkets

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Raley's
TypePrivate
IndustryRetail (Grocery)
FoundedFebruary 16, 1935 (86 years ago) (1935-02-16) in Placerville, California, U.S.
FounderThomas P. Raley
HeadquartersWest Sacramento, California, U.S.,
U.S.
Number of locations
Increase 129 stores (2020)
Key people
Michael Teel, Owner, Chairman & Chief Visionary Officer
Keith Knopf, President & CEO
ProductsBakery, dairy, deli, frozen foods, general grocery, meat, pharmacy, produce, seafood, snacks, prepared foods
RevenueIncrease $3.3 billion (2020)[1]
Owner(Raley family (100%))
Number of employees
Increase 12,400[2] (2020)
Websiteraleys.com

Raley's Supermarkets (also known as Raley's Family of Fine Stores) is a privately held, family-owned supermarket chain headquartered in West Sacramento, California. As of 2020, Raley's is the dominant supermarket operator in the Sacramento metropolitan area with 126 stores in northern California and Nevada. The chain employs around 12,000 team members.

History[edit]

The company was founded on February 16, 1935 by Thomas P. Raley in Placerville, CA as Raley's Drive-In Market.[3] Raley ran the company until his death on December 27, 1991, at the age of 88.[4] Raley's purchased Bel Air Markets in 1993, Nob Hill Foods in 1997 and Scolari's Food & Drug Company in 2018.[5][6][7] The company also started Food Source in 1995 and Market 5-ONE-5 in 2018.[8][9]

In 1998, the company had revenue of $2.5 billion.[10] In June 1999, Albertsons announced plans to sell its 19 stores in Las Vegas to Raley's, which also planned to purchase eight Albertson's stores in New Mexico.[11] For five years, Raley's had been searching for ways to expand the company, with specific interest in the Las Vegas and Salt Lake City markets.[10] At the time, Raley's was the 38th largest supermarket chain in the United States,[11] with 150 stores, including Bel Air Markets, Food Source and Nob Hill Foods. The company had 17,500 employees across its four divisions.[10] Raley's opened its Las Vegas stores later in 1999,[10][12] and had plans to build additional locations in the Las Vegas area.[13][12]

At the time, Michael Teel – the grandson of Thomas Raley – was the company's president and chief executive officer (CEO). Joyce Teel, the mother of Michael Teel, was the company's owner.[12] William J. Coyne, the company's first general counsel, became the chief operating officer in February 2002. Michael Teel resigned as president in April 2002, to pursue "personal endeavors." Coyne replaced Teel as president.[14]

In September 2002, Kroger announced plans to purchase Raley's 18 store locations in Las Vegas, with intentions of converting them into Smith's and Food 4 Less stores.[15][16][17] Raley's stated that slow growth and local competition were reasons for selling the stores. The revenue from the sale was to be used to build and renovate stores in Reno, Nevada and northern California.[18] The Federal Trade Commission approved the sale in November 2002. Raley's stores in Las Vegas began closing later that month.[18][19][20] As of November 2009, three Raley's supermarkets had been awarded Greenchill Partnership Gold-Level Certification by the U.S. Environmental Protection Agency for environmentally friendly refrigeration technology.[21]

A Raley's in Modesto, California

As of 2012, Raley's operates 128 stores, 40 of them in the Greater Sacramento area. Those stores control the city's largest market share: 28%, down from 30% in 2007 and 34% in 2003, according to Metro Market Studies of Tucson, Arizona. By comparison, other local market shares are Safeway at 16.7%, Costco at 11.9% and Save Mart Supermarkets at 9.2%. However, the company is suffering from increased competition in the region as well as the poor economy, and had more than 150 corporate layoffs in 2011 and closed several stores in 2012.[22][23]

Supermarket News ranks Raley's 38th in the "Top 75 North American Food Retailers" based on sales of $3.4 billion.[23][24] Consumer Reports surveys rank Raley's among the top U.S. supermarket chains, in particular for customer service.[25][26][27] The same held true for 2012, although the chain fell from 4th nationwide in 2009 to 8th.[28]

Thomas Raley's family still controls the company. His grandson, Michael Teel, became the majority shareholder in mid-2015 and currently serves as Chairman.[4] Keith Knopf was named Raley's Chief Operating Officer on June 1, 2015, and added 'President' to his title in February 2017.[29] He was then promoted to President and Chief Executive Officer on September 27, 2018.[30] Knopf has worked with May Co. Department Stores and Kohl's retail chain in the past.[31]

In 2004, Raley's opened its first Aisle 1 brand gas station in Galt, CA, and eventually grew Aisle 1 into 13 locations in Northern California and Nevada. Raley's sold all 13 Aisle 1 locations to Anabi Oil in December 2018.[32] Raley Field, home of the Sacramento River Cats, the Triple-A affiliate of the San Francisco Giants, is located in West Sacramento and is named after the chain.

On October 28, 2019, Raley's announced plans to close 27 in–store pharmacies. The company transferred prescriptions from affected stores to various CVS Pharmacy, Rite Aid and Walgreens locations.[33]

In 2020, since the beginning of the COVID 19 pandemic, Raley's has opened stores in two locations in Sacramento.[34][35] In April 2020, Raley's opened a 55,000 square feet flagship store in Sacramento’s Land Park neighborhood followed by a 35,000 square feet store in Rancho Murieta, which is located in Sacramento County.[35] The Rancho Murieta store includes grocery items, grab and go prepared foods, a full service deli and bakery unit and a cafe with indoor and outdoor seating. It also provides additional perks and facilities to Raley's loyalty club members.[35] Raley's has taken measures to reassure anxious customers, offering delivery services and requires its employees to use face coverings. Raley's stores are closely monitoring the number of customers inside the stores and have implemented protective shields at check stands and pharmacy counters. Signs and floor markings have been laid out to indicate shoppers to maintain social distancing. Reusable bags are not allowed inside the store and shopping carts are disinfected on a periodic basis.[36][37][38] Raley’s and Sacramento Republic have both delivered more than 10,000 meals to local senior citizens and have raised more than $60,000 through online donations which are going towards Indomitable Hands.[39][40]

Raley’s recognized its 85th anniversary with an integrated marketing campaign Good Never Stops.[41]

Banners[edit]

Raley's banners by number of locations
Raley's 79
Bel Air 21
Nob Hill Foods [note 1] 20
Food Source 3
Market 5-ONE-5 1
Raley's O-N-E Market 2
Sak N’ Save 1
Total stores 129

[42]

eCart[edit]

eCart is Raley's e-commerce platform which offers parking lot pickup for customers. Through eCart, the store has the capacity to process up to 250 online orders for pickup or delivery on a daily basis. Pickup customers have access to covered, pull-through parking spots, and their proximity to eCart storage reduces the wait time for shoppers when they arrive.[36]

Notes[edit]

  1. ^ Not to be confused with Knob Hill Farms, a now–defunct Canadian supermarket chain.

References[edit]

  1. ^ "Raley's on the Forbes America's Private Companies List". Forbes. Retrieved July 16, 2020.
  2. ^ "Raley's company profile at Sacramento Business Journal".
  3. ^ Johnson, Kelly (November 22, 1998). "Raley's keeps busy with building, remodeling, Web". American City Business Journals.
  4. ^ a b Sorich, Sonya (May 18, 2015). "Michael Teel becomes majority owner of Raley's". American City Business Journals.
  5. ^ "Raley'S / Bel Air: Happily Married". Nl.newsbank.com. December 5, 1993. Retrieved October 14, 2016.
  6. ^ "Family Prunes Its Business". Nl.newsbank.com. December 17, 1997. Retrieved October 14, 2016.
  7. ^ "Scolari's purchased by Raley's". Reno Gazette Journal. Retrieved 2019-02-20.
  8. ^ "Raley's is expanding Food Source format". Supermarket News. September 11, 1995.
  9. ^ "Raley's launches Market 5-ONE-5". Supermarket News. May 16, 2018.
  10. ^ a b c d Smith, Hubble (September 17, 1999). "Raley's to open first LV store". Las Vegas Review-Journal. Archived from the original on October 10, 2000.
  11. ^ a b "Albertson's to sell all LV stores". Las Vegas Sun. June 22, 1999. Retrieved August 10, 2017.
  12. ^ a b c Puppel, Doug (October 9, 1999). "Food Awakening: Raley's boss promises improvements in old Albertson's stores". Las Vegas Review-Journal. Archived from the original on June 14, 2000.
  13. ^ Levine, Paul (September 13, 1999). "Raley's converting Albertson's, looking at further LV growth". Las Vegas Sun. Retrieved August 10, 2017.
  14. ^ "LV supermarket chain CEO out". Las Vegas Sun. April 22, 2002. Retrieved August 10, 2017.
  15. ^ Smith, Hubble (September 14, 2002). "Kroger to purchase Raley's LV stores: Acquisition will make it largest chain in Las Vegas". Las Vegas Review-Journal. Archived from the original on September 20, 2002.
  16. ^ Crowley, Matthew; Smith, Hubble (September 18, 2002). "Kroger to close, convert stores: Union talking with company about job worries". Las Vegas Review-Journal. Archived from the original on September 22, 2002.
  17. ^ "Smith's to close three LV Raley's stores". Las Vegas Sun. September 17, 2002. Retrieved August 10, 2017.
  18. ^ a b Leong, Grace (November 14, 2002). "FTC allows buyout of Vegas-area Raley's". Las Vegas Sun. Retrieved August 10, 2017.
  19. ^ "Raley's to start closing stores: Seven sites to be shuttered today". Las Vegas Review-Journal. November 14, 2002. Archived from the original on January 11, 2003.
  20. ^ Jones, Chris (December 17, 2002). "Ex-Raley's stores set to open: Food 4 Less plans to have two shops operating this week". Las Vegas Review-Journal. Archived from the original on February 12, 2003.
  21. ^ "U.S. EPA Press Release: U.S. EPA Recognizes Raley's Supermarket Efforts to Keep Planet Cool, Nov. 2009". Yosemite.epa.gov. 2009-11-04. Retrieved 2016-10-14.
  22. ^ Jonson, Kelly (March 2, 2012). "Raley's closing two more stores". American City Business Journals.
  23. ^ a b Zwiebach, Eliot (April 2, 2012). "In With the New: The Sacramento Market: Conventional chains in California's capital city are feeling the heat from a range of competitive openings". Supermarket News.
  24. ^ "TOP 75 RETAILERS & WHOLESALERS". Supermarket News.
  25. ^ "Consumers rate supermarkets: Raley's comes out on top", The Food Institute Report, August 11, 2003: "West Sacramento, CA-based Raley's was ranked as the nation's top supermarket".
  26. ^ Joyce Swanson, "Raley's, Trader Joe's, Costco get high grades", Reno Gazette-Journal, August 12, 2003: "Consumer Reports readers evaluated shopping experiences in a number of areas, ... Raley's was the top-ranked store for overall customer satisfaction" (pay per view)
  27. ^ Reuters, "Shoppers prefer smaller grocers over Wal-Mart: poll", April 6, 2009.
  28. ^ "Regional Food Chains Rule Magazine's 'Best' List". Supermarket News. April 3, 2012.
  29. ^ "Raley's COO Knopf Adds 'President' to Title". Progressive Grocer. Retrieved 2019-02-20.
  30. ^ "Raley's names Keith Knopf as CEO". Supermarket News. September 28, 2018.
  31. ^ Glover, Mark (June 1, 2015). "Raley's hires retail industry veteran as chief operating officer". The Sacramento Bee.
  32. ^ "Raley's Sells Aisle 1 Fuel Centers to Anabi Oil". Progressive Grocer. Retrieved 2019-02-20.
  33. ^ Redman, Russell (October 28, 2019). "Raley's to close 27 pharmacies". Supermarket News.
  34. ^ Darrell Smith (May 8, 2020). "Do you have coronavirus shopping anxiety? These Sacramento therapists can help with that". The Sacramento Bee.
  35. ^ a b c Marianne Wilson. "First Look: Raley's opens new store under Bel Air banner". CSA, the business of retail.
  36. ^ a b Russell Redman (April 16, 2020). "Raley's unveils new flagship store in Sacramento". Supermarket News.
  37. ^ Darrell Smith (May 12, 2020). "See what Sacramento-area grocery stores are doing to keep you and their employees safe". The Sacramento Bee.
  38. ^ Russell Redman (June 2, 2020). "RALEY'S: West Sacramento, Calif.-base grocery chain Raley's, which has the vast majority of its stores in California". SuperMarket News.
  39. ^ Eddie Moran. "Awaiting MLS Debut, Sacramento Republic Looks To Fans At Home". Front Office Sports.
  40. ^ Sonya Sorich. "Raley's giving bonus to workers during COVID-19 outbreak". Biz Journals.
  41. ^ Russell Redman. "Raley's marks its 85th anniversary with 'Good Never Stops' campaign". Supermarket News.
  42. ^ "Raley's home page corporate fact sheet". Raley's. Retrieved July 16, 2020.

External links[edit]