Giant Food Stores to buy 16 Philadelphia-area Genuardi's markets

[MH1]

http://www.philly.com/philly/business/136785273.html?page=1&c=y

In what amounts to its biggest expansion move ever in the Philadelphia market, Giant Food Stores on Thursday announced it had acquired 16 Genuardi's supermarkets from Safeway Inc. for $106 million.

The transfer of ownership to Giant of 16 of 27 Genuardi's stores in the region - coupled with the closing of three more stores and the hoped-for sale of the remaining eight - likely signals the end of the Genuardi's grocery name, which was among the region's most highly regarded before Safeway acquired the family-owned business in 2001.

The supermarkets being snapped up and converted by Giant, based in Carlisle, Pa., are scattered across Philadelphia's Pennsylvania suburbs and include locations in Wynnewood and St. Davids, giving the fast-expanding retailer a foothold on the coveted Main Line, where family incomes are high and land for new, large grocery stores is generally hard to find.

Safeway said it would close three other Genuardi's and sell all four in South Jersey and four in Southeastern Pennsylvania that are not among the group Giant plans to convert in the next six months.

The acquisition by Giant is contingent on approval by the Federal Trade Commission.

Read more: http://www.philly.com/philly/business/136785273.html?page=1&c=y#ixzz1inQnecIn

The article has a list of which specific stores were sold to Giant, which ones will be closed, and which ones are for sale.

Giant is non-union and a union-buster, right? I have one near me and it's actually an excellent store, if I don't take into account the union aspect. But I always liked Genuardi's before it sold off to Safeway. So I see this development as unfortunate. More loss of choice. And, even though it has a certain store listed as acquired rather than closed, since it is very close to at least one existing Giant, I don't foresee it actually remaining open. I think maybe there is a question of the property lease and they will only keep that location open until they can get a better deal.

[JPZenger]

1. Safeway ran this chain into the ground

Genuardi's was the most respected supermarket chain in SE PA with very loyal customers and great locations. Safeway bought it and found they had to run newspaper ads to apologize a few months later because they realized they had already screwed up the quality and service. Now, they can't even sell many of the stores, because they have gone downhill. Giant is only buying the best locations, and many were already closed.

[MH1]

2. Yes. I hated it when I heard Safeway had bought it out.

I tried to stay open minded but whenever I went to the store it seemed like another thing that I used to like had changed for the worse. The local Genuardi's is now a shadow of its former self. I guess it might as well be Giant, or any other big chain store. However, I expect that one will close within a few years, because it's too close to a recently built new Giant.

[HopeHoops]

3. There goes the neighborhood.

[PRETZEL]

4. Two of the ones closing are close to me

Royersford and Jeffersonville. The Jeffersonville store was one of the first ones they started.

And yes, when the Genuardi family owned it, you could certainly see a difference in the way they treated their customers but as newer generations of family members came in you could see a change. They just didn't put the money into their stores the same way others were.

So, now it's the super stores. I like Giant and their store brands aren't bad for the price. It will be interesting to see how the two Giant stores that compete with Wegman's will fare.

[Glassunion]

5. Holy crap...

I'm glad we are not getting a 3rd Giant in Doylestown, however I would like one more option than just Giant and ACME.

It's a shame the location is not large enough for a Weagman's.