View Full Version : Quality grocery stores in OKC



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bchris02
07-15-2013, 03:39 PM
One of the biggest things people complain about in OKC, especially newcomers, is how few quality grocers there are compared to other cities. This isn't a thread to complain about that but rather a list of grocery stores in the metro that are quality and above standard so that newcomers will know where to go if Wal-Mart doesn't suit their needs. Here are mine and feel free to add more if I miss any.

Whole Foods - Intersection of Classen and Western
Sprouts - 63rd and May
Buy For Less - Portland and NW Expy
Homeland - N May and Britton
Homeland - Bryant and Danforth (Edmond)
Uptown Grocery - Covell and Kelly (Edmond)
Crest - Santa Fe and W 15th St (Edmond)
Crest - SW 104th and May

Plutonic Panda
07-15-2013, 04:29 PM
The Homeland on Bryant and Danforth is debatable. It is above standard for OKC I suppose.

Pete
07-15-2013, 04:43 PM
What is the criteria?

I think in terms of a Ralph's or Kroger's as as good middle market standard in terms of selection, prices and finishes.

It's hard to compare the first two but if you compare how nicely the stores are finished, most those stores on your list do not compare well with Ralph's and Kroger.

The Edmond Crest and Homeland - definitely not. This is the Edmond Crest -- looks far worse from the outside:

http://localtvkfor.files.wordpress.com/2013/02/crest-grocery-packed-e1361819879790.jpg


And Sprouts has fresh produce and good prices, but their interiors are very basic.

So, that leaves Whole Foods (which are nice everywhere), Uptown Grocery, one Homeland, one Crest and one Buy for Less. For an area of 1.4 million people!!

bchris02
07-15-2013, 05:08 PM
Pete, I agree.

The only three stores in the entire OKC metro that really compares with the standard in other cities are the Crest on SW 104th, Homeland on N May, and Uptown Grocery. The others however still are well above standard for OKC and are alright alternatives to Wal-Mart.

ThomPaine
07-15-2013, 05:34 PM
I'm not prone to say much nice about anything South of our border, but if the very fine folks at H-E-B could find a way to open a Central Market in the metro, I would be forever grateful. I would never say anything bad about texas again...

That being said, I enjoy Sprouts, Crest, and recently started shopping at Buy For Less when I'm over that way.

Jeepnokc
07-15-2013, 06:18 PM
Pete, I agree.

The only three stores in the entire OKC metro that really compares with the standard in other cities are the Crest on SW 104th, Homeland on N May, and Uptown Grocery. The others however still are well above standard for OKC and are alright alternatives to Wal-Mart.


The Homeland at SW 104th and Penn really spruced things up after Crest went in. They added fresh sushi, fresh olive bar, etc

flintysooner
07-15-2013, 06:44 PM
The Homeland at SW 104th and Penn really spruced things up after Crest went in. They added fresh sushi, fresh olive bar, etcBut they reduced the number of checkers, apparently quit carrying some stuff I used to buy, and that cold case in the back that keeps defrosting really bothers me.

On the other hand, since everyone else is apparently at Crest; then, I can usually get in and out pretty quickly as long as I use the self-checkout.

bchris02
07-15-2013, 07:39 PM
The Homeland at SW 104th and Penn really spruced things up after Crest went in. They added fresh sushi, fresh olive bar, etc

How is that Homeland doing? Aesthetically its one of the nicer Homeland's but with Crest so close it must be suffering.

bchris02
07-15-2013, 07:41 PM
The Edmond Crest doesn't have an upscale feel by any means, but it definitely wouldn't be out of place elsewhere like most grocery stores here. Many of the older Kroger's have that look/feel to them.

Soonerman
07-15-2013, 09:18 PM
I thought Reasors was suppose to open in Edmond?? I would love to see Reasors in OKC metro.

bchris02
07-15-2013, 09:32 PM
I thought Reasors was suppose to open in Edmond?? I would love to see Reasors in OKC metro.

It's being held up either by construction on Bryant or by NIMBYs. There hasn't been a report on it for a while so I am not sure.

Questor
07-15-2013, 09:59 PM
There's a new Crest FreshMarket (their upscale version) under construction in University North Park in Norman.

Also in Norman is the national chain Natural Grocers, which isn't so much upscale as it is organic and health focused.

bchris02
07-15-2013, 10:15 PM
There's a new Crest FreshMarket (their upscale version) under construction in University North Park in Norman.

Also in Norman is the national chain Natural Grocers, which isn't so much upscale as it is organic and health focused.

I'm hoping their next one is in NW OKC. Gaillardia or near Quail Springs would be perfect. There is a lot of money in that area and right now pretty much the only options are the Supercenter on N Penn or SuperTarget. Neither are what I would consider quality options.

OKCNDN
07-18-2013, 01:01 PM
Homeland in Yukon, at I-40 and Czech Hall is good and clean. Much cleaner than their other store a mile away at I-40 and Mustang Road.

UnclePete
07-18-2013, 02:16 PM
Seems like in Oklahoma City, high prices means quality. Any other cities like that?

bchris02
07-18-2013, 02:35 PM
Seems like in Oklahoma City, high prices means quality. Any other cities like that?

In OKC, for most people it's pretty much Wal-Mart or a higher priced alternative like Whole Foods. Other cities are not like that because they have more options. Ideally, OKC should have three tiers of grocery stores.

1) - Wal-Mart Supercenters and Neighborhood Markets
2) - Local value, no frills chain(s)
3) - Major mid-market chain(s)
4) - Specialty/upscale/organic stores (Whole Foods, Sprouts, Trader Joe's)

OKC is weak in #2 and #3 is pretty much non-existent, leaving #4 to be the 'quality' alternative to Wal-Mart.

GaryOKC6
07-18-2013, 03:51 PM
With Kroger coming into Oklahoma City I am sure that all the others will step up their game. Their stores in Texas are pretty nice.

bchris02
07-18-2013, 03:55 PM
With Kroger coming into Oklahoma City I am sure that all the others will step up their game. Their stores in Texas are pretty nice.

Is Kroger coming in? If so, that's the first I've heard of it. I highly doubt the truth of that unless you know something that hasn't been announced yet.

Plutonic Panda
07-18-2013, 08:43 PM
With Kroger coming into Oklahoma City I am sure that all the others will step up their game. Their stores in Texas are pretty nice.When is that happening? Are you sure they're coming in? How do you know this? Where are they eyeballing?

bchris02
07-18-2013, 08:50 PM
When is that happening? Are you sure they're coming in? How do you know this? Where are they eyeballing?

I haven't seen any press releases they are coming in. I hope it's the case though but I doubt it until I see more concrete evidence.

Kroger was a huge contributor to the Moore tornado relief effort.

jdcf
07-18-2013, 09:13 PM
We shop fairly regularly at both the crest on s may and the crest in edmond. I really do nor see much difference in terms of space, number and variety of items, etc. The may store is more appealing inside and outside, but it is also much newer. I am not real sure of the differences otherwise. I believe they are very comparable.

jdcf
07-18-2013, 09:14 PM
And yes, we are very much fans of Central Market and HEB.

Questor
07-18-2013, 10:10 PM
I'm hoping their next one is in NW OKC. Gaillardia or near Quail Springs would be perfect. There is a lot of money in that area and right now pretty much the only options are the Supercenter on N Penn or SuperTarget. Neither are what I would consider quality options.

It is really surprising to me that that part of town still doesn't have any better options than what you listed. I'd be really surprised if Crest doesn't build up there soon.

bchris02
07-18-2013, 10:43 PM
It is really surprising to me that that part of town still doesn't have any better options than what you listed. I'd be really surprised if Crest doesn't build up there soon.

I agree. Its pitiful that in probably the nicest suburban area in the metro you are forced to either shop at Wal-Mart or drive to Buy For Less on NW Expressway, which is a good drive from that area. People aren't exaggerating when they talk about how dismal the grocery selection is in OKC. I don't think there is any other city in the country in the same situation.

I know Crest's strategy is slow expansion to prevent having to take on debt, but in my opinion this would be the perfect time for them to blanket the metro with Crest Fresh Market stores. They compete well against Wal-Mart and its just a matter of time before the liquor laws are changed. Crest doing so would seal their place as the dominant mid-market grocer in this market and prevent another chain from coming in and filling that niche if/when the laws are changed. It would also force Homeland to start investing in their stores or be left behind. Then again, I am just a commoner venting on a message board.

zachj7
07-20-2013, 12:00 AM
^ Nice seeing you over here,

It would be a godsend if Kroger came in. It would be awesome to have some central markets come in. Food is a huge issue with me and OKC. I just can't stand all the craplands, walmarts, and targets.

bchris02
07-20-2013, 12:15 AM
It would be a godsend if Kroger came in. It would be awesome to have some central markets come in. Food is a huge issue with me and OKC. I just can't stand all the craplands, walmarts, and targets.

I know what you mean. It's just one of many quality of life issues that really bug me about it here.

Unfortunately, most of this is probably wishful thinking. I doubt H-E-B or Kroger will ever open in OKC without a change in the liquor laws (which I am not holding my breath for). That doesn't mean that Reasor's won't come in or that Crest won't build more Fresh Markets.

bradh
07-20-2013, 07:49 AM
Crest already is on that side of town, Hefner & Rockwell. I don't see them putting another location up there without closing that one.

You're absolutely right though, that area along Memorial should be attracting all sorts of higher end businesses. There is so much land and it's one of the reasons why I don't really feel like moving from this side of town. I'm holding out hope that they build a Lifetime Fitness on Memorial.

bchris02
07-20-2013, 08:56 AM
Crest already is on that side of town, Hefner & Rockwell. I don't see them putting another location up there without closing that one.

You're absolutely right though, that area along Memorial should be attracting all sorts of higher end businesses. There is so much land and it's one of the reasons why I don't really feel like moving from this side of town. I'm holding out hope that they build a Lifetime Fitness on Memorial.

True. I would say a Wal-Mart Neighborhood Market is more likely for Gaillardia.

bradh
07-20-2013, 09:00 AM
You mean as where they would shop? I think most Gaillardia residents (from a small sample size of folks I know and work with) do their grocery shopping at Target on Penn. It's not a bad place, but it's not like a good grocery only store.

The WMNM across from Crest on Rockwell is a nice, clean store.

okcpulse
07-20-2013, 10:00 AM
I know what you mean. It's just one of many quality of life issues that really bug me about it here.

Unfortunately, most of this is probably wishful thinking. I doubt H-E-B or Kroger will ever open in OKC without a change in the liquor laws (which I am not holding my breath for). That doesn't mean that Reasor's won't come in or that Crest won't build more Fresh Markets.

Kroger operates in states with similar liquor laws as Oklahoma. The have locations in Kansas, for example. Pete posted a map of states that have Kroger locations.

Now, before we hail Kroger or HEB as the 'taj mahal' of grocery stores, may I remind you that both have poorly maintained locations. A good example is the Kroger on Loop 336 South and I-45 in Conroe. We avoid that location at all costs. But even the Signature Kroger - to me - is nothing more than a dressed-up Albertsons. Now the new HEB markets on the other hand are very nice, but expensive.

bradh
07-20-2013, 10:11 AM
Dillon's are the Kroger owned stores in Kansas. They have the liquor store attached to the grocery store in most locations I think.

bchris02
07-20-2013, 10:40 AM
Dillon's are the Kroger owned stores in Kansas. They have the liquor store attached to the grocery store in most locations I think.

I also doubt Wichita has as many Wal-Marts per capita either. That's probably why they are able to support Kroger.

ljbab728
07-24-2013, 09:30 PM
An interesting recent survey about supermarket chains and a good reason to hope that Trader Joe's is seriously looking here.

Trader Joe?s Tops List of Best Grocery Store Chains | The Exchange - Yahoo! Finance (http://finance.yahoo.com/blogs/the-exchange/trader-joe-tops-list-best-grocery-store-chains-182739789.html)

Dustin
07-27-2013, 10:51 PM
Just got back from a day of shopping in Tulsa. I was shocked at the amount of natural and organic grocery stores. OKC has a lot of catching up to do!

Tulsa also just got a Natural Grocers | Your Real Natural Grocery Store (http://www.naturalgrocers.com/) Would love to see one here.

gamecock
07-27-2013, 11:06 PM
Just got back from a day of shopping in Tulsa. I was shocked at the amount of natural and organic grocery stores. OKC has a lot of catching up to do!

Tulsa also just got a Natural Grocers | Your Real Natural Grocery Store (http://www.naturalgrocers.com/) Would love to see one here.

We have a Natural Grocers in Norman. Personally, I think we have plenty of the small natural and organic grocery stores. What we need is some more Whole Foods and a Central Market or Wegmans.

bchris02
07-28-2013, 12:32 AM
Just got back from a day of shopping in Tulsa. I was shocked at the amount of natural and organic grocery stores. OKC has a lot of catching up to do!

Tulsa also just got a Natural Grocers | Your Real Natural Grocery Store (http://www.naturalgrocers.com/) Would love to see one here.

I agree. Tulsa is worlds ahead in this area as well as many other areas. I don't see anything changing here in the near future. Wal-Mart has too much control over this market.

OKC would be a perfect expansion market for H-E-B but we can wish all we want, it isn't happening.

gamecock
07-28-2013, 01:54 AM
I agree. Tulsa is worlds ahead in this area as well as many other areas. I don't see anything changing here in the near future. Wal-Mart has too much control over this market.

OKC would be a perfect expansion market for H-E-B but we can wish all we want, it isn't happening.


I'm not a big fan of Wal-Mart, but I don't understand how they have "control" over the market. A high-quality grocery store like Whole Foods or Central Market is not really competing for the same customers. I think the problem is the perception that people here will not spend a little extra to have a better quality experience. Frankly, I can understand that perception because this does seem to be a common mentality here relative to other places I have lived. That said, I do think there are enough people in the OKC metro and in cities like Norman and Edmond who would be willing to pay higher prices for better products/service.

bchris02
07-28-2013, 08:46 AM
I'm not a big fan of Wal-Mart, but I don't understand how they have "control" over the market. A high-quality grocery store like Whole Foods or Central Market is not really competing for the same customers. I think the problem is the perception that people here will not spend a little extra to have a better quality experience. Frankly, I can understand that perception because this does seem to be a common mentality here relative to other places I have lived. That said, I do think there are enough people in the OKC metro and in cities like Norman and Edmond who would be willing to pay higher prices for better products/service.

Wal-Mart's marketshare in OKC is over 60%. In most cities, even where they are the leading grocery, its only between 30-40%. When Wal-Mart gets over 60% of every grocery dollar spent in the market, it makes competing chains very nervous about trying to enter the market. While other, less Wal-Mart heavy markets can support better grocery (like Tulsa and Wichita) with 3.2 beer and no wine, because of Wal-Mart's overall dominance in the OKC market, wine sales are a MUST if any competing chain is to enter because that gives them a profit cushion as well as leverage against Wal-Mart.

And yes, there is also the perception that people here won't support better options. Tulsa, Wichita, Little Rock, etc don't suffer from that perception. I am sure Wal-Mart's 60%+ marketshare solidifies this perception. Big retailers look only at numbers and don't take into account the reason behind those numbers, and numbers don't make OKC look very good.

SoonerDave
07-30-2013, 09:06 AM
And yes, there is also the perception that people here won't support better options. Tulsa, Wichita, Little Rock, etc don't suffer from that perception. I am sure Wal-Mart's 60%+ marketshare solidifies this perception. Big retailers look only at numbers and don't take into account the reason behind those numbers, and numbers don't make OKC look very good.

Perhaps another component is that people in Oklahoma recognize that much of that difference is perceived, and that at the end of the day that a map is still a mop, a can of soup is a can of soup, and a package of Oscar Mayer hot dogs is still a package of Oscar Mayer hot dogs regardless of whether it came from a trendy, presumably upscale store, or the no-name market down the street. I, personally, am not particularly concerned if folks look down their nose at me if they note my grocery receipt doesn't say "Expensive Trendy Mart" on it.

I realize there is something to be said for "better options," but that term is a wide street with lots of curves. For some, it just means a cleaner store. For others, it means selection. For still others, it means "out-of-the-box" notions like a meat market, or a fish counter. We have to be very careful to differentiate practical, real differences that truly provide value versus notions that are really just nothing more than snob appeal.

bchris02
07-30-2013, 09:35 AM
Perhaps another component is that people in Oklahoma recognize that much of that difference is perceived, and that at the end of the day that a map is still a mop, a can of soup is a can of soup, and a package of Oscar Mayer hot dogs is still a package of Oscar Mayer hot dogs regardless of whether it came from a trendy, presumably upscale store, or the no-name market down the street. I, personally, am not particularly concerned if folks look down their nose at me if they note my grocery receipt doesn't say "Expensive Trendy Mart" on it.

I realize there is something to be said for "better options," but that term is a wide street with lots of curves. For some, it just means a cleaner store. For others, it means selection. For still others, it means "out-of-the-box" notions like a meat market, or a fish counter. We have to be very careful to differentiate practical, real differences that truly provide value versus notions that are really just nothing more than snob appeal.

I get what you are saying and its partially true. However, next time you are in Dallas, go into a Central Market or Kroger. Next time you are in Tulsa, go to a Reasor's or Fresh Market. Then try to say wishing there were options like those in OKC is only for snob appeal. Stores like H-E-B aren't any more expensive than Wal-Mart yet offer a higher quality product, more selection, and a much better shopping experience. I'm sorry, I get angry every time I have to go to a Supercenter, especially when its 6PM and only two cashiers working and a line stretching way back, and I don't think I'm the only one who gets fed up with it.

adaniel
07-30-2013, 09:56 AM
I get what you are saying and its partially true. However, next time you are in Dallas, go into a Central Market or Kroger. Next time you are in Tulsa, go to a Reasor's or Fresh Market. Then try to say wishing there were options like those in OKC is only for snob appeal. Stores like H-E-B aren't any more expensive than Wal-Mart yet offer a higher quality product, more selection, and a much better shopping experience. I'm sorry, I get angry every time I have to go to a Supercenter, especially when its 6PM and only two cashiers working and a line stretching way back, and I don't think I'm the only one who gets fed up with it.

Then why do you keep going there?

I don't think you will find too many people here who think OKC's grocery market is up to snuff with other similarly sized cities, but you have other choices besides WalMart if you are willing to drive a bit further. Many people have listed other stores that offer much higher quality, so I am not going to rehash them here.

But if you are a glutton for punishment, by all means keep going. I'm just becoming very unsympathetic to your complaints if you continue to support the one thing you hate when you clearly have other options.

Dubya61
07-30-2013, 11:36 AM
Perhaps another component is that people in Oklahoma recognize that much of that difference is perceived, and that at the end of the day that a map is still a mop, a can of soup is a can of soup, and a package of Oscar Mayer hot dogs is still a package of Oscar Mayer hot dogs regardless of whether it came from a trendy, presumably upscale store, or the no-name market down the street. I, personally, am not particularly concerned if folks look down their nose at me if they note my grocery receipt doesn't say "Expensive Trendy Mart" on it.

I realize there is something to be said for "better options," but that term is a wide street with lots of curves. For some, it just means a cleaner store. For others, it means selection. For still others, it means "out-of-the-box" notions like a meat market, or a fish counter. We have to be very careful to differentiate practical, real differences that truly provide value versus notions that are really just nothing more than snob appeal.

Yup.


Then why do you keep going there?

I don't think you will find too many people here who think OKC's grocery market is up to snuff with other similarly sized cities, but you have other choices besides WalMart if you are willing to drive a bit further. Many people have listed other stores that offer much higher quality, so I am not going to rehash them here.

But if you are a glutton for punishment, by all means keep going. I'm just becoming very unsympathetic to your complaints if you continue to support the one thing you hate when you clearly have other options.

Yup. bchris02: You're voting FOR Walmart every time you purchase something there. There are plenty of alternatives and there are better alternatives.

Soonerman
07-30-2013, 02:00 PM
I don't understand why Reasor's isn't in OKC?? It would be a great place for a store like Reasor's.

soonerguru
07-30-2013, 02:21 PM
I don't understand why Reasor's isn't in OKC?? It would be a great place for a store like Reasor's.

Gentlemen's agreement with Homeland?

Soonerman
07-30-2013, 02:25 PM
Funny thing is Homeland had a location in Tulsa. I think they closed it last year. So I doubt they have a gentlemen's agreement.

bhawes
07-30-2013, 04:35 PM
Funny thing is Homeland had a location in Tulsa. I think they closed it last year. So I doubt they have a gentlemen's agreement.

It depends if in contract if there are no locations within a 100 miles or you have to wait 10 years after they close in order to build.

ctchandler
07-30-2013, 06:05 PM
Wasn't Reasor's in Oklahoma City at Northwest Expressway and Portland for a while? They had a very nice organic section. I think they closed down after about a year.
C. T.

zookeeper
07-30-2013, 06:22 PM
Wasn't Reasor's in Oklahoma City at Northwest Expressway and Portland for a while? They had a very nice organic section. I think they closed down after about a year.
C. T.

C.T.

I don't believe so. Maybe you're thinking of Baker's? That store (now Buy For Less) was a Baker's for awhile when Fleming owned them about a decade before their collapse.

bradh
07-30-2013, 07:52 PM
I agree. Tulsa is worlds ahead in this area as well as many other areas.

Then move to Tulsa. You're always spouting this and the Wal-Mart thing.

As far as having more Whole Foods...that place is a joke, and they making a killing off the sheeple that shop there.

bluedogok
07-30-2013, 09:09 PM
C.T.

I don't believe so. Maybe you're thinking of Baker's? That store (now Buy For Less) was a Baker's for awhile when Fleming owned them about a decade before their collapse.
I think it was built as a Baker's, which was out of Nebraska IIRC. I think they sold out to Fleming, wasn't it a Food For Less for awhile before it became Buy For Less?

okcpulse
07-30-2013, 09:10 PM
I believe people are being too hard on Oklahoma City when in comes to grocery options. You quickly forget that we have two chains that are answering the demand for better quality, locally. You, the consumer, have the power to demand better because you are a paying customer. Other cities have demanded better and received better, while some people in OKC spend all their time drooling over options in other cities, then shopping there, while doing nothing to push local grocers for better quality. Crest and Buy 4 Less is making efforts, and those need to be supported if we want to see improvements.

We can always wait for a company outside the market to come in and rescue us, but it doesn't work that way. We can debate until we are blue in the face that part of the problem is lack of market share, and we'd be right, but at the end of the day we let Wal-Mart march in and run the show while we paced back and forth with our heads staring at the floor with "other cities" envy.

Oklahoma City's demographics are much better than in years past, that is just the bottom line. I just spoke with a regional manager at Kroger that emphasized that it doesn't matter if a city has pock-marked high income areas or contiguous high income areas, they are more concerned about market share in a regional trade area.

We need to meet our own desires half way by putting our money where our mouth is as paying customers. If we hate Wal-Mart, don't shop there. If we hate Homeland, let's put together a survey and skewer their upper management for failure to deliver quality products in a quality environment.

okcpulse
07-30-2013, 09:11 PM
Also, I'd like to add that I will be putting my money where my mouth is by shopping at either Crest or Uptown Market.

bchris02
07-30-2013, 09:20 PM
I believe people are being too hard on Oklahoma City when in comes to grocery options. You quickly forget that we have two chains that are answering the demand for better quality, locally. You, the consumer, have the power to demand better because you are a paying customer. Other cities have demanded better and received better, while some people in OKC spend all their time drooling over options in other cities, then shopping there, while doing nothing to push local grocers for better quality. Crest and Buy 4 Less is making efforts, and those need to be supported if we want to see improvements.

We can always wait for a company outside the market to come in and rescue us, but it doesn't work that way. We can debate until we are blue in the face that part of the problem is lack of market share, and we'd be right, but at the end of the day we let Wal-Mart march in and run the show while we paced back and forth with our heads staring at the floor with "other cities" envy.

Oklahoma City's demographics are much better than in years past, that is just the bottom line. I just spoke with a regional manager at Kroger that emphasized that it doesn't matter if a city has pock-marked high income areas or contiguous high income areas, they are more concerned about market share in a regional trade area.

We need to meet our own desires half way by putting our money where our mouth is as paying customers. If we hate Wal-Mart, don't shop there. If we hate Homeland, let's put together a survey and skewer their upper management for failure to deliver quality products in a quality environment.

Good post. So from your conversation with Kroger, does it appear that I was correct in that Wal-Mart's marketshare is what is keeping them (or another chain) out?

People can do their part to not support Wal-Mart, but the vast majority will still shop there even though they don't like it. There is a Southpark episode that tells it perfectly. If that is the case, than its unlikely the situation will improve much unless Homeland was to be bought out. Until then, those who care about quality should do their best to support the few places in the metro that provide it.

A lot of people here have accused me of being a Wal-Mart shopper, but I try to stay out of there unless I absolutely need to. Usually I only go when my parents visit because that's where they insist on shopping. My mom refuses to shop at Crest or Homeland. Myself, most of the time I take the extra time and effort to drive to Buy for Less on NW Expressway or Sprouts.

bluedogok
07-30-2013, 09:45 PM
I think Kroger or Safeway buying Homeland is still the most likely scenario, they both seem to prefer acquisitions in a new market rather than a complete new start up. Both seem to be methodically expanding but Kroger seems a little more active lately with the recent Charlotte acquisition.

bchris02
07-30-2013, 09:55 PM
I think Kroger or Safeway buying Homeland is still the most likely scenario, they both seem to prefer acquisitions in a new market rather than a complete new start up. Both seem to be methodically expanding but Kroger seems a little more active lately with the recent Charlotte acquisition.

I agree. However, it will be a major investment for whatever company undertakes it being that most Homeland stores will need so much work to bring them forward three decades. The worst Harris Teeters are about on the level of the Edmond Crest, with the average store being like Uptown Grocery so for them it will pretty much just be a name swap.

I'm hoping it gets done though. Homeland seems like a perfect target for a takeover.

bluedogok
07-30-2013, 11:06 PM
The thing is though the stores are a small part of the grocery infrastructure, Safeway/Homeland has had back end assets that are the real cost of doing business for a grocery chain in the way that Kroger, Publix, HEB likes to operate. There are several King Soupers facilities on this side of Denver, we drive by the milk plant every day going to work. That was one of the problems for chains like Albertsons and K-Mart (in general), their distribution setup was spread out over great distances that they didn't have enough scale of economy to compete. I know that Homeland took over all the Safeway assets at NE 36th & Lincoln when the split happened, I'm not sure if they still have those assets or if AWG kept those and whether they could be bundled in a sale. I think Kroger looks much more for a turnkey opportunity than a new build out when looking at new markets.

bchris02
07-30-2013, 11:14 PM
The thing is though the stores are a small part of the grocery infrastructure, Safeway/Homeland has had back end assets that are the real cost of doing business for a grocery chain in the way that Kroger, Publix, HEB likes to operate. There are several King Soupers facilities on this side of Denver, we drive by the milk plant every day going to work. That was one of the problems for chains like Albertsons and K-Mart (in general), their distribution setup was spread out over great distances that they didn't have enough scale of economy to compete. I know that Homeland took over all the Safeway assets at NE 36th & Lincoln when the split happened, I'm not sure if they still have those assets or if AWG kept those and whether they could be bundled in a sale. I think Kroger looks much more for a turnkey opportunity than a new build out when looking at new markets.

Interesting. So if Kroger can buy the entire Homeland infrastructure, updating the stores though a large task would be small compared the entire purchase?

zookeeper
07-30-2013, 11:22 PM
Interesting. So if Kroger can buy the entire Homeland infrastructure, updating the stores though a large task would be small compared the entire purchase?

Except I don't think Homeland is interested in selling. They have a fairly unique set-up with employee ownership that's apparently working out real well. Homeland is making some moves, see this: BRR wins Homeland as newest grocery client. | BRR Architecture (http://www.brrarch.com/2013/04/brr-wins-homeland-as-newest-grocery-client/) . The mysterious thing is why they pour all of their money into just a few of their stores. I have a feeling they'll be selling off some of those old stores, and that's why the stepchild treatment and we'll see new Homelands more like May and Britton.

bchris02
07-30-2013, 11:28 PM
Except I don't think Homeland is interested in selling. They have a fairly unique set-up with employee ownership that's apparently working out real well. Homeland is making some moves, see this: BRR wins Homeland as newest grocery client. | BRR Architecture (http://www.brrarch.com/2013/04/brr-wins-homeland-as-newest-grocery-client/) . The mysterious thing is why they pour all of their money into just a few of their stores. I have a feeling they'll be selling off some of those old stores, and that's why the stepchild treatment and we'll see new Homelands more like May and Britton.

That would be awesome. I do like the Homeland at May and Britton. If more of them were like that and less like May and 122nd, it would be an excellent chain. It does seem like some of the worse ones are closing, like 39th and Penn for instance. Instead of closing the old stores, they should sell them and hopefully the buyer will invest more in them.

bluedogok
07-30-2013, 11:35 PM
Interesting. So if Kroger can buy the entire Homeland infrastructure, updating the stores though a large task would be small compared the entire purchase?
An architect (since retired) that I worked with in OKC did a lot of grocery distribution centers, mainly for Publix (the firm was based in Bethany) and the cost of those are significant over store remodeling costs. Benham did Fleming distribution centers in the early 80's. All those facilities can add up quick when you are trying to warehouse all the stock that a grocery store needs, even when I worked at Skaggs in high school there were some items that we would have trouble keeping in stock because of the lag between orders and delivery since there wasn't a large Skaggs-Albertson's/Alpha Beta distribution center in OKC. It definitely saves money in the long run in distribution costs and time to the shelves.

An electrical engineer that I worked with in Austin worked for HEB properties division for many years before going into private practice, if you are opening new stores constantly that can be more than the back end investment, HEB typically had a balanced approach of new and remodeled stores. The Albertson's (that closed) by our house in South Austin was an HEB in a strip center before they built a new store at Brodie Lane & WM Cannon. Most of the older HEB stores were leased locations in strip centers, as was the Central Market on our side of town. They are just cheaper than developing your own stores but HEB has such a cash flow now they are looking at replacing those older stores with new stand alone stores. They also took over quite a few of the abandoned Albertson's locations when they left the Austin market.

I know most of the King Soupers here are in strip centers, and the one I remember from Little Rock was in a strip center mall type of arrangement (Markham & Rodney Parham location). The two that I went to in Dallas were as well, I think that is what Kroger prefers instead of developing stand alone locations.

The distribution system is where Walmart excels, HEB is pretty close to them in efficiency and that is a big part of their profit. Waiting for a Fleming (back then) or AWG to get your stock to you can bog down that efficiency and increase your costs since you are going through a middle man that a chain like Walmart, HEB, Kroger, Publix, etc. are not having to bear, they are buying direct from suppliers. Crest has a similar model just on a much smaller scale, the fact they are able to operate like that with so few stores is a testament to how much quantity they have go through those stores.