Schnucks Denies Market Exit
are some regional supermarket
chains facing tough times
as they go up against bigger competitors.
Marsh Supermarkets, according to
a recent Indianapolis Business Journal report,
had been for sale but is not currently because its owner, Sun Capital Partners,
was not able to get the price it wanted. The chain, which
in the past had often been mentioned among the innovators in the grocery business
along side the likes of H.E.B., Publix and Wegmans, has fallen on tough times
in recent years going up against Meijer, Kroger, Target and Wal-Mart
Another chain, 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 the Memphis, Tennessee market.
time, Scott Schnuck, chairman and CEO of the chain, said in a press release, "We
are now facing increasing pressure from five competitors within a two-mile
radius, including two supercenters. In our experience, grocery options in Cordova
have well exceeded demand."
Since that announcement, speculation has been that Schnucks couldn’t cut it
"There is absolutely no truth to any claim that we’re leaving Memphis," Lori Willis, director of communications for Schnuck Markets, told The Commercial
Appeal. "The Cordova closing was an isolated case and there are
no plans to close or sell any of our other properties. We have not talked
to any other companies."
According to The Commercial Appeal report,
Publix was named as a possible suitor for Schnuck stores in Memphis. A spokesperson
for Publix, Brenda Reid, told the paper, "We have no confirmed expansion
projects to announce for Memphis or the surrounding area. Our Tennessee presence
is primarily in Nashville and Chattanooga."
Discussion Questions: How do you perceive the current state of regional
supermarket chains in the U.S.? Is Schnuck Markets better or worse positioned
than most to succeed?
- Marsh taken off the market – Indianapolis Business Journal
- Schnucks, hoping to squash rumors, insists it’s in Memphis to stay – The
- Schnucks to close Tennessee store due to Wal-Mart competition – St. Louis