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Wednesday, September 9, 2020

Wegmans to Eliminate In Store Pubs

Welcome back to Retail News! Today, we have another news recap - this one is definitely an important story for those concerned of the Wegmans Food Markets brand.


Wegmans, the New York based grocery chain, known for spacious stores stocked with a number of self-serve and service amenities, announced this summer the closure of their Pub dining concept. This comes in a large part due to the coronavirus pandemic, both within its present impacts and future industry adjustment. However, store employees have also suggested that the Pub suffered from a lack of profitability prior to the lockdowns. Such extended closures would have subtracted money for the chain, which braced for another challenge in keeping prices consistently low at that time. 

The discontinuation of the Pub comes after having closed in March, as part of Wegmans' plan to keep their stores open for essential shopping. Locally to this blog, the supermarket operated a Pub restaurant at their Alexandria, VA store as well as all three central Virginia locations (Midlothian, Short Pump, and Charlottesville).


The restaurant initially debuted in 2009 alongside their Collegeville, PA store. The old-time bar concept served numerous alcohol products, as well as a variety of meals in an exquisite environment. Over the years, the concept gradually expanded, mostly alongside new Pennsylvania stores. Wegmans had not opened a new Pub in any of their stores since 2016 (when the three aforementioned Virginia stores opened doors). The chain had pivoted to expanding their Burger Bar fast-casual brand, with most new stores featuring said concept. Expansion of the concept had also been stifled by beverage laws in certain states with Wegmans locations. Maryland forbids the sale of alcohol within grocery stores (barring some exceptions), while Massachussetts and New Jersey Wegmans operate liquor stores running on separate register systems.

Burger Bars have reopened as of late, catering to customers in various ways including dining the Amoré restaurant inside their East Avenue store in Rochester, NY is scheduled to reopen later this year. Before the coronavirus outbreak reached U.S. shores, the Blue Dalia Mexican food restaurant (inside their Natick, MA store) closed in December 2019.

While I never had a chance to experience Wegmans' Pub concept, nor visit any stores which featured this concept, I certainly admired how the chain was creative and with such an idea.

What are your thoughts on the end of Wegmans' Pub concept? Do you believe it is in the best interest of the chain to move on from such restaurants, or would you have wanted these to return following the pandemic? If you ever dined inside the Pub, how did you feel about the food, drinks, and service? Also now that some months have lapsed, what do you see happening with these Pubs - has the transition to the spaces' next tenants begun already, or do they remain in a fallow state?

Personally, I would have at least made an effort to offer meals as takeout during the past few months (given the ubiquity of apps like Instacart and Wegmans 2GO) or run limited operation until it is safe to normally operate once again, after the risks of infection have receded.

That being said, thanks for reading up on this latest Retail News update! More is to come on your favorite retail stores, featuring exclusive insight and projections on the future of retail business. Stay tuned!

Sources

Sale of Shoppers Delayed

Welcome back! Today, I am here to present you with a long-awaited introduction to my regular blog feed. 
This blog post is to be the first installment of my Retail News column here on the Shoppes of Battery Mill. My purpose with these posts is to inform readers of relevant happenings in the retail industry. Articles featured here primarily zone in on the Washington, D.C. area, albeit occasional reports will focus on chains and shopping destinations from outside said area as well. Keep in check for more headline retail stories, as well as insight on each story!


 Our first story will focus on the Mid-Atlantic grocery stalwart, Shoppers Food. It's something I have covered quite a bit since first getting into retail in 2014, in pertinence to its history and current events.

The last major update was in December 2019, when UNFI finalized its plans to sell thirteen Shoppers locations and close another four outright. This news followed almost two years of speculation, stemming from SuperValu's initial plans to exit their own retail brands. The time period in question had already shown dedication to the wholesaler's goal, with a string of other Shoppers closings and the sale of sister chains such as Farm Fresh, Hornbacher's and Shop n' Save. 

Among the supermarket outfits who bought into SFW included Lidl, Compare Foods, and McKay's. Sales began within days; most stores on the list had wrapped by mid-January 2020, with some finishing only two weeks after the announcement. An additional two stores (Kensington, MD and Franconia, VA) were added later on, closing in tandem with the original 17 announced earlier in the month.

In the aftermath of this round, grocery industry analysts wondered what would be UNFI's next move. All that they had indicated was that SuperValu's holding company was still in the process of selecting buyers for the remaining 24 locations. This version of the story held true until the month of March. As COVID-19 cases began to pop up in the region as they were nationally, customers flocked to the stores to take in essential products in advance of lockdowns. Once the dust had settled, the sales numbers for the chain had grown higher than the usual. This would provide not only for better financial stability, but a greater return down the line.

This brings us to the actual story. In May 2020, the first reports of UNFI retaining the Shoppers brand appeared. Speaking in a BMO conference, UNFI CEO Steve Spinner declared his intent to delay the sale of their Shoppers and Cub chains as a result of the aforementioned sales increase. Both chains had previously been marked as having "discontinued operations" - a code which meant the two banners were in autopilot, no longer to expand on their brands as their individual locations were in talks for sale.

During this two-year period, Shoppers will continue to close and sell select branches as they had previously. There, however will remain some stores by the time the period will lapse. It is yet unknown if these final stores will continue (whether under the Shoppers name or not), or close down simply. Regular maintenance, and probable remodels are also to continue for the rest of these stores.

Will Shoppers survive as a brand or not? What locations do you believe will be sold in the meantime, and to whom? Let me know if you wish.

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