Is This A Shift From "New Build" Back To Acquisition For Major Retailers?
It's always better to have the option or opportunity to sell a retail location with competition building. Most supermarket retailers would rather have the option to sell than just have a major player move into the same marketing area and destroy your valuable supermarket asset.
So that is the positive...the negative becomes another major player comes into greater volume in an already over serviced New York retail food marketplace. The growth of Lidl would seem to be quicker and the danger larger to conventional retail supermarkets.
Conventional supermarkets who are already facing a shrinking center store presence will now erode even quicker.
For Best Markets this would appear to be a lifeline. Best Markets had solid supermarket competition form all sides. The ability to generate profitable growth for Best Markets had all but dried up as it has for most of the smaller conventional retailers in New York.
Not of any fault of Best Markets, the New York marketplace seems the intersection of so many aggressive big box retailers.
Could This Be A Conventional Supermarket Retailers Opportunity?
Conventional grocers now within the Lidl marketing area almost anywhere could well have been awarded an unusual opportunity. While Lidl remains serious competition the focus for Lidl will be one more attuned to grocery and less towards perishables.
Should Lidl take this model of acquisition rather than new build today's supermarket retailers may find new value in some older and often overlooked brands.
Recently Brookshire acquired many Winn Dixie locations. Should this trend continue and perhaps expand to other growing supermarket organizations this will present new options. While competition is never good news we would all rather see a competitor enter the marketplace giving the independent financial options not seen for some time.
Many have asked why I choose to write about what I see in the supermarket industry today and my ideas. At Bad-Adz Digital, PreparedFoodPhotos.com & Adlife we believe great ideas and the resulting branding will give new life and direction to any company. So for that reason we chose to open the discussion.
Yes, I understand I probably misspelled something or butchered the English language in a few places, the goal however was to open your minds to new ideas.
Joel Albrizio, President Bad-Adz Digital, Bad-AdzVideos.com, PreparedFoodPhotos.com & Adlife