Pages

Sunday, January 10, 2016

The Future of Shoppers (slightly opinionated)

Note: These opinions/predictions are mine and do not represent anyone associated with Shoppers or SuperValu, like the rest of the blog. This also does not do, or condone any libel against these two companies.

Shoppers then. Credit: sfwcorp.com on archive.org
As Shoppers is facing fierce competition in the crowded Washington D.C./Baltimore grocery markets, you may stop and wonder: Is this store even a thing anymore?

Shoppers, once the famous warehouse chain touting low prices in comparison to Giant and Safeway, has fallen behind in the past decade thanks to changes in the corporate atmosphere and major competition as a result of becoming a midscale grocer. In a simpler time, the retailer reached the top three in the region; now, it does not even make the top ten.
Less favorable locations in areas have shut down in recent years, at a higher ratio to new/vastly remodeled stores and to other chains as well. Several stores dotted throughout are staying open despite criticism and a lack of shoppers.

It is not uncommon that many citizens in the area tend to forget or forgo this store. Local business news rarely mentions the chain as well. On top of these, one of the largest points of Shoppers's recent unsuccess is the fact that only two new stores have opened since 2007 (one which has closed). There have also been no new-build stores since then. In the meantime, SuperValu has been focusing more on streamlining the chain with their other properties via decor packages, signs, and ads.

On a positive note, the chain still shows loyal customers at their dozens of locations. People carry out their grocery shopping affairs and shop in all 56 locations daily. Several hotspot locations can be packed with customers on a daily basis, one even being open 24 hours a day. The iconic Colossal Donuts are also a hit at Shoppers, attracting many customers to their stores even today.
Overall, Shoppers has an average reputation in the D.C./Baltimore grocery market in 2016, remaining mostly stagnant but still profitable.

Now, the question is: What will/should happen to Shoppers in the next several years? That's not-so simple, but it will be simple in the end.

Prediction for the future

As critical to this post, we will start with a more fact-based outlook on Shoppers' future. While we may not know exactly what happen, feel free to enjoy this unbiased prediction of the store's coming history.
To start, Shoppers has been running strong as a SuperValu brand for sixteen years. That means it's surpassed other numerous brands such as Albertsons, Acme, Jewel-Osco, Scott's Food & Pharmacy, among others. As I've mentioned before, changes in the marketplace and in the company have also takened place, leading to Shoppers being easily beaten out by the competition. As of late, Shoppers is also becoming more homogenized to the other SuperValu brands, sharing nearly identical websites, advertisements, and private products.

Several people (including me as well) have generally criticized this move for stealing the identity of Shoppers and some competition points, as more have remodeled to the current interior look since 2014. Adding on to this, some have also commented that the interior decor is "bland" and "generic".

In July 2015, SuperValu announced the possibility that it may spin off its' famed Save-A-Lot division, a slight competitor to Shoppers in Maryland. Later, current CEO Sam Duncan announced his retirement at the end of February 2016. The Save-A-Lot spin-off was filed in January 2016.

What could this mean for Shoppers? As of late, SuperValu has stated that the reason of selling Save-A-Lot is to expand the profitability and let it go with its' success. They are then looking at improving their individual brands, which have all been described as "mid-scale". It may indicate that SuperValu is to hold on to Shoppers, even though it is not weak nor is it strong by any means.

Will Shoppers make it if things remain stagnant, though? Well, SuperValu may put some effort in, of course, but I may have a feeling that things won't change too much for the most part, even if these things don't go through. Sure, Shoppers may experience some changes with branding and look, but I may have a bad feeling that a few more stores could close by 2020 if these things happen.

Continuing, more closings may happen if more competition happens around, especially with the expansion of more low-price chains, as seen in multiple places. Shoppers, however could have a mix of changes.
Back to the good old days, though? "Warehouse" shelving on its' way? Well, if Shoppers listens by any chance, we could see some change. We'll see on that soon.

Anyways, in summary, these next few years could be tumultous for Shoppers besides a couple of changes. Expect to see a remaining few stores remodeled along with a crop of adjustments to ads and more. See you soon!

No comments:

Post a Comment