New Jersey supermarkets being sold
January 24, 2012 by James
Safeway, the parent company of the Genuardi’s supermarket chain is sell most of its stores to Giant Foods. Giant Foods plans to convert most of the stores into its own brand. Safeway decided to exit certain areas as they want to concentrate on parts of the country where they have s stronger presence. The stores being sold are located in areas such as Burlington and Cherry Hill.
This change is unlikely to affect consumers greatly. The stores that are being sold will be replaced with new supermarkets. People will still have a place nearby to shop for food. Safeway hopes to make the sale a smooth transition for both employees and customers. They are now negotiating a deal with the buyer which will ensure that the new company will keep as many employees as possible.
The company is refusing to discuss why certain stores are being sold and others are not. However it is fair to assume that the stores were not a financial success. There are a number of factors which could have contributed to this. Firstly the New Jersey food market is flooded with supermarkets, small grocery stores, butchers and boutique stores. Many of these stores sold their products for a lower price than Genuardis. These stores could have improved sales if they decided to launch a low cost marketing campaign. For example using printing services to print information about sales and food prices may have helped. Unfortunately it is now too late for this brand to try to boost sales.