Victory the Only Option for Hannaford in Massachusetts

Discussion
Jan 25, 2006
George Anderson

By George Anderson


Rick Meyerkopf, Hannaford Bros. central division vice president of retail operations, said it all. ‘Hannaford is committed to becoming a major player in Massachusetts.”


The Delhaize division is now the fifth largest grocery retailer in the state having passed Whole Foods, Roche Bros. and Price Chopper in the past year. This weekend Hannaford will open its two biggest stores in Mass., according to a report in The Boston Globe.


Hannaford’s Meyerkopf believes the EDLP operator can achieve even greater market share and success in Mass. Acknowledging the intense competition that exists in the market, he said, “We feel like we have a compelling offer.”


Mike Berger, editor of the Griffin Report of Food Marketing, said, ‘Delhaize sees growth in this market and feels Hannaford is the right one to expand that can compete against Stop & Shop (the market leader) and others on price and product.”


Supervalu’s acquisition of Shaw’s, a major competitor in Mass., may further impact the competitive environment. Many industry watchers believe that Shaw’s will only improve its performance as a member of the Supervalu portfolio of retail banners.


Part of the allure of Mass. is the relatively low numbers of Wal-Mart Supercenters in the densely populated areas of the state.


“We wanted to make sure as Wal-Mart expands that we have our act together,” said Hannaford’s Meyerkopf. ‘Because when Wal-Mart comes to an area we’re in, we lose at least five percent percent of sales in the first year.”


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5 Comments on "Victory the Only Option for Hannaford in Massachusetts"


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john rydin
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john rydin
15 years 1 month ago

I think it’s great that Hannaford is looking to expand in Massachusetts, but I think it will take a lot more presence and focus for them to gain any traction. From what I know, the chain is struggling quite a bit with the Victory stores they acquired last year. Also, they profess to be an EDLP operator, but their retails have gone up a lot recently. They seem to be happy being equal or just slightly lower on retails than their #1 competitor. That’s great, but the competition is blowing them away with great weekly specials on key items. They are not even close to Wal-Mart EDLP retails. I think they have lost their way a little bit and need to get a little sharper on their EDLP pricing if they still want to play that trump card!!

Mark Lilien
Guest
15 years 1 month ago

The Massachusetts economy has been cyclical in the past and will continue to be cyclical in the future. Technology and education are major industries doing very well right now, so real estate is high and so is employment. When the cycle goes negative, the excessive multiplicity of chain grocers will cause great pain upon the players. When Wal-Mart and Costco get more aggressive by opening more locations the pain will get excruciating. Now’s a great time to merge, which reduces excessive competition, improves profit, and preserves capital. There are way too many grocery players. Rollup strategies work well when the price and leverage remain reasonable and the management executes competently. To do well through an economic slowdown and increased Wal-Mart/Costco presence requires brilliant management, not just competent management.

Lynne Powell-Pinto
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Lynne Powell-Pinto
15 years 1 month ago
As a Massachusetts shopper, Mom and professional in the Grocery/CPG industry, I also welcome Hannaford’s entry to the competitive landscape! I can choose to shop Shaw’s, Stop & Shop and Hannaford since they all have stores located within 10 min of my home. The big thing Hannaford is doing right is providing very high quality perishable foods — I feel their produce and meat are the best in the area. There are two things that Hannaford needs to consider to compete in this market (and I’m sure they know this, but…): – While I like the concept of EDLP (don’t have time to shop around chasing sale prices), but don’t see it actualized in the pricing on center store items at Hannaford. Maybe it is on produce or meat but, frankly, I can’t remember what I pay per pound for pork but I do remember what I paid for a package of diapers or 12-pack of Coke. As others remarked…Hannaford should sharpen up the EDLP pricing or bag it, and compete with the others with… Read more »
Joe foran
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Joe foran
15 years 1 month ago
I used to live in Mass., and shopped at a Victory store upon occasion as it was near my in-laws. It was a GREAT store; perimeter execution was superior, and it was a great shopping experience. Folks in the area spoke of it as fun to shop, not a chore. It was about 150 yards from a brand new Stop & Shop, and was consistently busier than the Stop & Shop. I visited the same store last fall. Simply, Hannaford killed this store. They turned it from an example of everything that food retailers need to do in order to have a point of difference into just another supermarket. I went in on the day before Thanksgiving – they had half their registers open, and I didn’t have to wait in line. I did a large shopping trip; at no time during my visit on what should have been the busiest time ALL YEAR did I see a line at checkout. I drove past the Stop & Shop; their parking lot was PACKED. Wal-Mart doesn’t… Read more »
David Livingston
Guest
15 years 1 month ago

Hannaford is simply taking advantage of a window of opportunity that has opened. Stop & Shop, one of the major players, is owned by Ahold. Currently, Ahold has more on its mind than running supermarkets. Ahold is just trying to stay solvent. Shaws was purchased by Albertsons so we know the light switch went out on them the day Albertsons took over. Now Shaws must go through a whole new learning curve with Supervalu. With the two largest competitors distracted, now is the time to hit them when they ain’t look’n.

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