I mean that. This story is not going to have a happy ending for investors. Roundy's has failed in Wisconsin and now Mariano's in going down the same path in Chicago losing market share. Tom
Sentiment: Strong Sell
The last two years we have put all the news on FaceBook. Suppose to get training this week to get it all back on the website. I'm cutting out petty news article and going to just put larger media links on it - TV, WJS, etc. Doesn't have near as often those waste of time newspaper stores.
SVU @ $9.58 Fifty Two week high $9.78. SVU has done a great job ramping up Jewel stores, they also have taken some of Mariano's best talent.....but who hasn't? Tom
Sentiment: Strong Sell
bad info ... ignore this bitter FORMER roundy's employee, he was passed over for a reason, your posts validate why you were bumped
And it happened. They cut back on the number of existing stores closing or selling all in MN and now some in WI with more come. This brings in cash to continue to subsidize Chicago. As long as there is a way to pay to keep the lights on, then all is good.
I noticed when there is panic, rumors, and trouble, employees will gather in the office of a departed employee and whisper with the lights out. Whats up with that? Yea turn the lights out so we can't hear you. My advice is when having a secret meeting on Sunday, make sure the speaker phone in the conference room is turned off. Someone might be on the other extension.
DJL - If I remember correctly you had an excellent post when Mariono's first started up about the higher costs of labor/rents/etc. being unsustainable at their current price levels. That "something" was going to break eventually, either cut backs in staffing, much higher prices, etc.
I agree with some of that. However if the stores are losing as much money as they seem to be, the competitors can just sit back and watch. Right now I don't see any stores closing. A couple of them should but they won't. Ego will keep them open. Everything will be tossed overboard to keep the stores afloat. You are correct that they are unsustainable. There is so much talk of selling stores with so many multiple buyers, along with the warehouse, that the cash will just keep coming in. Eventually all the safety nets will be depleted. Then we can always files bankruptcy which can keep the stores open indefinitely. So for now or in the near future, I don't see Chicago going away.
dj: I really believe there is a concerted effort of the Chicago grocery retailers to remove Mariano's as a competitor in the Chicago market. While Mariano's is opening stores at a rapid fire pace it will not be sustainable and the stores will close one by one as same store sales of Mariano's will disappoint in future quarterly earnings. We're already seeing half of the projected revenue coming from the Gurnee Mariano's and more will follow. I do feel Arlington Heights and Vernon Hills will be survivors. Tom
Sentiment: Strong Sell
I think many believe that now that Albertsons has Jewel back, they will just milk and starve the stores like before. Albertsons also bought United in TX recently. So far they are keeping it in top shape. Walmart announced 3 Neighborhood Markets in Amarillo because they believe Albertsons will starve and milk the stores, lowering them to Walmart standards and easier to compete with. I'm not so sure. Albertsons seems a bit more serious this time around. If they put the same kind of effort in Chicago, it could be fatal for us. While we have excellent stores, we are losing money in order to keep them excellent. Albertsons knows we are cash strapped, a $3 penny stock, and there is a mass exodus of good managers. Maybe Albertsons is the best company to buy out the WI stores, AWG can buy the warehouse and supply them. With the Stevens Point warehouse forced to shut down, Oconomowoc should be busy and a good buy for AWG. Selling WI to Albertsons and AWG would provide cash to make the debt manageable. Perhaps they would pay us a little extra if we promise not to build any more stores in Chicago. Sure we can still take walks with dunce aldermen through the blighted areas but we don't have to tell them we aren't building more stores.
bitter man... this great analysis is based on a "visit" to Whole Foods....remember the source here folks, a disgruntled FORMER employee
The saying "Been there done that" couldn't be more true for the grocery consumer in the Chicago market as the hype of the Mariano's experience is fading quickly. The newly remodeled Jewel's are a pleasant, lower prices shopping experience versus Mariano's. The parking lots of Jewel are plenty full however the biggest thing I notice is the amount of items per cart. The consumer is again doing their weekly shopping at Jewel as most shopping carts at the registers are full. Mariano's has a consumer now that uses the much smaller shopping basket for those that are continuing to shop there and that number is falling as the gross revenue on a weekly basis for Mariano's same store sales is now driving revenue for Jewel. The highest end consumer will remain loyal to Whole Foods or The Fresh Market. I recently went into the Whole Foods a block from Lincoln and Belmont and asked the floor personel what their customers are saying about Mariano's? The overwhelming response was "They think Mariano's is just an expensive Jewel". Enough said. Tom
Sentiment: Strong Sell
I'm sure they are more experienced now with terminations. Funny about 4 years ago I was drug into court. The lawyer questioning me asked me if I was fired for incompetence. I was never told that but he showed me a year end employee review that was prepared after I was gone. Of course it wasnt good like previous years. In previous years Roger just told us to write up our own reviews, don't make it too perfect, and then he'd sign it and give us a nice raise. . This one was a bit negative. But I think I got a $500 raise after I was gone. Never understood why I would get a year end review and raise if I wasn't there. Well I just compared it to Brett Favre being traded from the Falcons to the Packers because he wasn't good enough. 10 yeas later who cares what happen at the Falcons. BTW, my client won in court.
Regardless of conduct, termination is often inevitable. Feather your bed and get prepared. Take all your personal stuff home now and replace it with disposable props. Copy important files to a flash drive. Severance often requires signing a non-compete do rush it. Right now the market is flooded with managers trying to hook up with Festival, Meijer, HyVee, Piggly Wiggly, and independents looking to buy the WI stores along with chains outside the region. I'm getting a few calls from competitors asking if this guy or that is a good egg. I was probably kept on two years longer than I should have. For two years I really didn't have a boss or supervisor. Pretty much just showed up when I felt like it. No one seemed to know what my job was or what I was doing. With not much going on at the office, I used my time to develop multiple streams of income with developers, retailers, competitors, and software users. Of course they eventually got wise after I dropped few clues -using my cell phone out of the country on consulting jobs, taking random rides as a tag a long on the company plane, putting phony meetings with non existent people in my email calender. Finally when I was all psyched up to get the ax, it still didn't happen. So I put up a portrait of Richard Nixon on the wall. I started wearing jeans and t shirt work. That didn't do it. Then I just stopped showing up altogether for days on end. Finally the nightmare was over.