Kash n’ Karry Kuts Store Kount
By George Anderson
The Kash n’ Karry division of Delhaize America announced it was closing 34 of its stores in Florida as part of its plan to turn its business around.
Most of the stores being closed are in Central Florida away from the chain’s primary Western Florida market.
Caren Epstein, a spokesperson for Kash n’ Karry, told the Orlando Sentinel, “In keeping with our strategies to expand and remodel stores within our core market, we had
to make the difficult decision to leave some areas.”
Moderator’s Comment: What are your thoughts on Kash ‘n Karry’s decision to shutter some stores in light of the competitive situation in Florida?
We found 81-year old Irene Smith’s reaction to her local Kash n’ Karry store closing to contain more than a touch of irony. Ms. Smith told the Orlando
Sentinel, the store’s closing meant, “we’ll all have to go to Wal-Mart.” [George
Anderson – Moderator]
This is the position that many ‘middle’ retailers find themselves in today. This is one area where this is not limited to or solely related to supermarkets. When you look at the competitive environment in central Florida there are a few choices. They are Wal-Mart, Winn-Dixie, Kash N’Karry, Albertson’s and Publix. There is little differentiation between the middle three and Wal-Mart and there is significant difference between these ‘middle’ stores and Publix.
We’ve discussed over the holidays this same situation with stores like J.C. Penny, Sears, and Kohl’s in general retailing. Its really the same type of issue. When you have offered the customer no valid reasons to chose your store, they simply don’t. The lack of differentiation is now creating a disparity in choice. But when you think about it – Haven’t we already made the choice?
When stores like these close, its as much as the consumer making the decision to close them as it it the company’s choice as well.
I am not saying that you have to be at one end of the spectrum or the other in retailing to survive. In this case, the retailer made the choice to do little and thus received little reward. This should be no surprise. These are the results of the issues we discuss here every day.