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Mon Feb 10, 2020, 03:10 PM

How a beloved organic grocery chain collapsed

New York (CNN Business)In 2016, a homegrown grocery chain hit the big time.

Kroger, America's largest supermarket chain, took a majority stake in Lucky's Market, a Boulder, Colorado, grocer known for its farmers-market-style stores that aimed to make natural foods more affordable. Lucky's tagline: "Organic for the 99%."

The partnership seemed to make sense for both companies: Lucky's, which had 17 stores dotting college towns from Colorado into the Midwest, would receive a cash infusion to help it expand. Kroger would get an inside look at a trendy grocer to firm up its position in natural and organic foods and to woo new shoppers.

"We expect to learn a lot from each other," Kroger CEO Rodney McMullen said at the time.

But less than four years into the deal, the partnership is over. Lucky's, a grocer with a loyal base of shoppers has collapsed, thousands of workers' jobs are up in the air and suppliers have been bruised by the loss of a valuable customer.

https://www.cnn.com/2020/02/07/business/luckys-market-bankruptcy-kroger-organic-grocery/index.html

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Reply How a beloved organic grocery chain collapsed (Original post)
Sherman A1 Feb 2020 OP
Wellstone ruled Feb 2020 #1
Sherman A1 Feb 2020 #3
luvs2sing Feb 2020 #2
Wellstone ruled Feb 2020 #4
mitch96 Feb 2020 #5

Response to Sherman A1 (Original post)

Mon Feb 10, 2020, 03:24 PM

1. No,Kroger is walking away with billions

 

in learned Merchandising of organics. If you visit a Kroger Store,which include,Smiths,City Market,Dans,Fred Meyer. You are seeing or will see this learned Merchandising happening in real time. As for Luckys,they were the victim of ignorance knowing full well when you time up with a National Chain,you will either grow or die. Which seems to be the Nature of Grocery Retailers today.

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Response to Wellstone ruled (Reply #1)

Mon Feb 10, 2020, 04:30 PM

3. That was my takeaway as well

Kroger put up some money for the education and then having learned what they felt they needed to learn in the category, pulled out the bucks and said adios.

The owners of Lucky's were either naive or not very good operators.

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Response to Sherman A1 (Original post)

Mon Feb 10, 2020, 03:38 PM

2. The original owners bought back a few stores,

Including the one here in Columbus which has a large following and will stay open. I doubt Kroger learned anything from Luckyís. I never saw any improvement in Krogerís steady downslide around here. I only saw Luckyís begin to mirror it.

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Response to luvs2sing (Reply #2)

Mon Feb 10, 2020, 06:15 PM

4. Well,have to disagree.

 

To many decades in and around that Industry. Familiar with Kroger chains here in the west as to the positive changes learned. When Trader Joe's Popularity hit and was doing a number on Smith's,Meyer's Ralphs and City Markets as well as other smaller associated groups,fresh produce and bulk item sales. The learned part saved their butt in a major way. Walmart hired a director of Produce and Organics away from a Successful Midwest Grocery in order to begin to compete.

As for Kroger's allowing their Individual Stores to turn into crap holes,that is someone in Accounting calling the shots. Did a number of New Store as well as Refurbished Stores resets couple decades ago. Demographics of Customer base as well as these same Demographic Changes play into whither a store is put on a watch list as to product turns per day making that store viable to the bottom line or not.

A great study of Grocery Retail is how Super Valu of Hopkins Minnesota bought Albertson/Vons and took a bath financially and eventually forced to sell to a Cerbus Capital for pennies on the dollar of original value caused by some CEO trying to establish a Monument to his Greatness without investigating just how encumbered and outdated Albertson's Business Model was.

Albertson/Von's has cleaned up their act somewhat by adopting a model similiar to Lucky Stores and other Independent Retailers of the Midwest.

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Response to Sherman A1 (Original post)

Tue Feb 11, 2020, 12:26 PM

5. That sucks, I really liked Luckys. nt

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