David Livingston

Schnucks Denies Market Exit

August 25, 2010

FROM RETAILWIRE:
It's no secret that there are some regional supermarket chains facing tough times. Schnuck Markets finds itself in the odd position of having to deny rumors that it is closing up shop in one of its market areas because of a recent store closing in Memphis, Tennessee. How do you perceive the current state of regional supermarket chains in the U.S.?      [more...]

Generally, I am finding regional chains doing quite well. Schnucks going to Memphis was a mistake. They went after a failed group of stores. Combine that with lack of name recognition and the learning curve of a new market and I would not be surprised if they did decide to exit. However, in St. Louis they are still king.

As long as the regional chain is privately held by family members, I'm finding they are doing well. Once they go public or sell to an investment group, that's when things begin to go very very wrong. Sure, every now and then a family member will take a crazy pill and things like Marsh leap-frogging to Chicago or Schnucks to Memphis will happen. That's the exception rather than the rule.