Used to shop Safeway's Dominick's at Western and Roscoe. The place was dead and Supervalu's Jewel-Osco was always packed. I'm talking maybe 12 cars in Dominick's lot on a Thursday evening versus three dozen in Jewel Osco's lot. Dominick's closed the store a couple of years ago. Mariano's took it over. The lot at Marianos (site of the former Dominick's) is PACKED and now the Jewel lot is half empty.
Mariano's is killing Dominick's. One of the busiest Dominick's is in Park Ridge and, by expressway exits, is the closest major grocery to O'Hare Airport. Business has declined a bit but now TWO Mariano's are opening near by: One in downtown Park Ridge and another in Harwood Heights.
Marianos' also taking over Hoffman Estates Dominick's location after Safeway didn't renew the lease. Mariano's is about the only retail establishment you hear people raving about.
Safeway is doing relatively well overall, but they are getting killed in Chicagoland and it will get worse.
I hold no stock in any grocery company nor in any general retailer that sells groceries like Walmart or Target. Just a customer who was loyal to Dominick's for decades, was hugely turned off by Safeway's ownership, and is, like many Chicagoans, a huge fans of Mariano's. I hope Safeway exits Chicago. Sell the stores to Marianos.
Good thread. No question SWY has not executed well in Chicago but the idea that Mariano's is a real threat is pretty far fetched. They have what, 5 stores in Chicago? Their parent is cash strapped and has announced a plan to open a max of 3-5 stores a year which I doubt is possible given their loan covenants. Roundy's is a dead man walking. Their IPO was criminal and only served to bail out Pvt equity. The dividend lasted one or two quarters before being slashed.
$7 million TIF grant approved for a marianos at the corner of Monroe and Halsted in the west loop... will be right across the street from Dominicks... going to eat them alive... never any fresh produce at dominicks anymore in the city... wilted lettuce and celery is the norm there
The Arlington Heights Mariano's store is doing a minimum of $900k per week. It is probably north of this figure. I was just in there on a Monday afternoon at 2:00pm and it was absolutely packed with customers buying full baskets of groceries. The store does a great job all around and the front end is terrific and keeps the customer flow moving. With regard to Dominick's, Don Keprta just resigned and no one publicly seems to understand why. I would suspect his departure has everything to do with the dismal operation Dominick's has continued to be over the last twelve years since Safeway's acquisition. This once proud operation has become a shell of its former self and is in dire need of some "Mariano's" type management. I remember as a kid first starting in the grocery business back in 88' that the Dominick's store at Lake Cook and Arlington Heights Rd. in Buffalo Grove, IL was doing well over $800k per week and that was 23 years ago! I know competition has increased, but that store now is lucky if it is doing $350k per week. As for Jewel-Osco, they have really started to get pounded by the increased presence of Meijer, Mariano's, Target, Wal Mart and the rest. Stores that were once doing almost a million a week in sales are now doing less than half of that. The landscape in the Chicago grocery market continues to change...
Since SWY sold off Genuardi's, any chance they will do the same with Dominick's? They just seem to be going more and more downhill in Chicago. Mariano's would be very welcome in some of these locations.
Yes these stores were like Cub stores, much cleaner, well stocked, you bagged your own groceries. A few people have told me that Cub foods was within 2 to 3 months of closing down the Chicago land operations. When that announcement came, they ended up lasting 10 m0re years. What I was told that the operation was not making money, margins were too low, payrolls as a percentage of sales were in 4.5 to 5%, ask around and let me know if there is any operators out there with those payroll numbers. I think that Mr Bur(the brain) had them close down, that was one of many conditions in order to buy Dominick's, that append just a year or so later.
try at least 1M,and 15 to 20 stores going up in the next 5 years.
If they keep the right amount of help in the stores they will clean up. At Dominick's they pretend to have service, you have meat markets with 2 people in them on a Saturday. The store is great just a ton of people in it.