2009.08.18
More on Ukrop's sale prospects
The latest on Ukrop's Super Market's efforts at seeking a buyer for its 28-store chain was reported today by Supermarket News, a grocery trade publication. According to this story, Harris Teeter no longer is in the running to acquire Ukrop's.
Instead, a private equity group outbid the N.C. based chain, said Supermarket News, citing unnamed sources.
Click here for the online news update.
This is good news. A private equity group will maintain the good things about Ukrops and eliminate the silly business practice of closing early and on Sundays. You can also bet it won't take them long to add beer and wine to the product mix. I just hope the Roanoke store makes the cut and gets a chance at succeeding with a more modern business plan.
Comment by Joe — August 18, 2009 @ 1:43 pm
I think it's most likely bad news. A private equity firm will probably want to cut costs to the bone and retreat to Ukrop's core market.
Comment by KevinL — August 18, 2009 @ 10:19 pm
OK Rich let's hear your .02
Comment by Mike D — August 19, 2009 @ 12:42 am
Regardless of the cut potential, if Ukrops were fundamentally altered from its current business plan, the larger chain as a whole could be jeopardized if they wind up being made similar to Food lion, Kroger, Harris Teeter, and everyone else out there. Right now, they are unique in not selling alcohol and being closed on Sunday, something that a large number of their customers seem to appreciate, Roanoke notwithstanding. While some possible changes may be welcomed here, they may not take so kindly elsewhere.
Comment by Other John — August 19, 2009 @ 11:11 am
Run the numbers Other John. Sales could increase by as much as 20% by being open on Sunday and holidays. Profit from alcohol sales are huge. The rest of the retail world validates that customers don't boycot stores that are open on Sunday or that sell alcohol. Other then some minor employee complaints there is no down side to opening on Sunday or selling alcohol. The employees will adjust to the expanded hours just like everyone else in retail has.
Comment by Joe — August 19, 2009 @ 3:17 pm
John,
Get a clue dude! Why would ANYONE appreciate no alcohol sales or not being open Sundays?? The logic isn't there. Besides they sell cigarettes, right??? Wow what great values they have. These hypocrits deserve the worst!!
Comment by Nato — August 19, 2009 @ 7:16 pm
I like them for the reasons of not selling booze and not opening on Sundays. If someone wants to drink alcohol, can't they buy enough during the week to get them through the weekend?
Comment by Hoppy — August 20, 2009 @ 5:30 am
FYI Nato they Do not sell Cigarettes either.
Comment by Roanoker07 — August 20, 2009 @ 2:17 pm
Nato, why the need to be so harsh. Why wish bad on others? Just vote with your feet and don't go there. No need to be so uncivil.
Comment by Jim D — August 21, 2009 @ 8:35 am
Well, if they close shop in Roanoke, I will do my shopping at Fresh Market. I hate Krogers!
Comment by SD_Girl — August 21, 2009 @ 4:46 pm
heres the deal. the people that are gripping about the NO alcohol don't really know the whole reason behind it. do some research. how about chic-fil not being open on sundays? what happens when you want really want one of those great chicken sandwiches? how about ashley furniture? before they left the valley ( came back ) they weren't opened on sunday. i BET if ukrops opened on sundays ppl would find something else to find wrong with the store. all i can say is... must be alot of people that need to attend AA meetings. are they open on sundays? hmmmm? maybe during a intermission they can fire up a cigarette while they are coughing and weezing. now, this is just my opinion. stay healthy!
Comment by cherie — August 21, 2009 @ 6:32 pm
Personally, the main inconvenience of Ukrops to me is the early closing hours. I am often a late shopper, and I don't come back after finding locked doors in the evening. Ukrops, get with it. It is the 21st century, and your competition is offering too many things that you don't/won't. If you want to survive, changes must be made, and possibly it's too late, but we all se where this is heading if you don't try.
Comment by Abner Ewwes — August 22, 2009 @ 12:39 am
Correction to what Cherie said in last post-Ashley's was open on Sunday. I know that because I purchased my furniture there on a Sunday. I had to wait because they didn't open until 1pm.
Why can't everyone just leave them alone. There is nothing wrong (other than lost sales) for not being open on Sunday. If you opened a store, would you be open 7 days a week (especially if YOU had to run it).
Seems like everyone has nothing better to do than to complain!!!!!
Comment by Jenny — August 24, 2009 @ 7:32 am
hey jenny, i don't know when you went to ashleys...but there was a sign on the door. this was BEFORE they left the valley. don't get me wrong. i don't dispute what you said...shoot, who knows, the tape might have come off of the sign! other than that, i TOTALLY agree w/ you about ppl complaining. geez, patronize all of the grocery stores to keep people working. JMOP
Comment by cherie — August 24, 2009 @ 11:12 pm
abner, you know, it doesn't matter what time a place opens or closes. it's NEVER gonna' be ideal for everyone. that's just the way it is. sorry.
the end.
Comment by cherie — August 24, 2009 @ 11:18 pm
Jenny,
To answer your question of if I opened a store would I be open 7 days a week: The answer is it depends:
Is my competition open 7 days a week
Am I able to survive on less than 7 days a week
How much profit am I leaving on the table
Do my cusotmers demand 7 days a week
Can I staff my store 7 days a week.
I don't have a problem with Ukrops being closed on Sundays and closing early during the week. I do have a problem with the attitude of their management team. They seem to want to blame the developer, their customers or Roanoke for the probems they are having. They need to look in the mirror. The problems they are having are a direct result of the poor business plan they put in place for opening in the Roanoke market. They were doomed from day 1.
Comment by Joe — August 25, 2009 @ 8:25 am
I've done a fair amount of retail work, and for many retailers, Sundays are their slowest business days, hence why many are closed or run restricted hours. One of the stores I help with now has tried staying open on Sundays but gets such slow traffic that it actually costs them money to be open, so they will likely stop being open on Sundays if things continue like they have since they opened. And no, it has absolutely nothing to do with anything other than a business decision for them.
The point of my initial comment was not an evaluation or critique of Ukrop's practices, nor an expression of support for them. It was intended as an opinion that they are unique in the grocer market, for better or worse, and that their customers seem to appreciate the difference. Not sure why that wasn't understood. I tend to do a lot of my shopping on Sunday just because of scheduling. I don't get to Ukrop's because it's an hour long drive, but even if the drive was shorter, I'd probably either still not be shopping there because of my schedule, or I'd try to squeeze it in another n ight of the week if I liked them enough(which I do for a lot of items they sell). I honestly think people are making way too much out of something fairly trivial. You'll either like Ukrops and shop there, or you won't and you'll shop where you always have. I always got irritated at the vegetarians who would demand that Burger King sell veggie burgers and non-meat options. It's the same deal with Ukrops. Why demand that they change their model to suit a relatively small portion of the customer base that doesn;t drive much of their sales revenues to begin with?
Comment by Other John — August 25, 2009 @ 4:18 pm
Would you give up 15% of your pay so your employees can go to church on Sundays with their families if they want to?. . .Ukrops does.
Would you give up 5% of your pay so your employees can be with their families on major holidays (July 4th, Labor Day, Memorial Day , New Years)?. . . .Ukrops does.
Would you give up another 2% of your pay to allow your customers to donate to the charity of their choice. . . .Ukrop's does (Golden Gifts Program)
If you owned a $600 million a year company would you hire the elderly and retired folks in the community that may need a little extra to supplement social security? . . .Ukrop's does.
Ukrop's is a values based company. Their values may seem old fashioned and outdated to some. Their values might remind you of some of the wisdom your grandparents tried to sell you. If they are sold, I guess we can get on with our "everything , all the time" world, but I'll miss them.
Comment by Dave — August 25, 2009 @ 5:04 pm
Joe just to clarify something in your comments. Ukrops management has not said one word about the developer or Roanoke. The only words they have uttered have been respectful of the Roanoke Valley. They did say they hoped the new Walgreen's would increase traffic but they didn't blame anyone. The comments you are referring to have all come from the blogs and the pro versus con discussion of Ukrops hours. In fact the few times someone from Ukrops has posted on the blogs they have encourage people to come in and talk to them about the store. Just want to make sure you point your anger to the right people.
Comment by Original Greg — August 26, 2009 @ 8:22 am
Original Greg,
In a December 5, 2008 piece in Progressive Grocer, Bobby Ukrop sited the undeveloped Ivy Center as the main culprite in the Roanoke stores slow trafic and low sales. He went on to state other causes include the poor economy and competition.
We all know that many grocery stores operate in stand alone buildings and those that are in centers are typically the primary driver of traffic. Ukrops is failing in Roanoke because they are new to the market and they just don't measure up to the competition when it comes to hours of operations, pricing and the ability to meet the customers desire for a one stop solution. It is completely within their power to resolve the traffic and sales issues or at least give the store a fighting chance.
I find it hard to believe that someone with Bobby's retail experience failed to recognize that opening a single store in a market the size of Roanoke is not a very good idea. Maybe he had a senior moment or maybe he is just stubborn.
Comment by Joe — August 26, 2009 @ 9:31 am
Thanks for the clarification Joe. When you say management team most assume you are talking about the local management not the owners. As for the Ukrops model, they have always expanded into new areas one store at a time. It's up to the area to prove they want the store to expand and obviously Roanoke has not made that statement.
Comment by Original Greg — August 26, 2009 @ 9:06 pm
let's face it. ROANOKE DOESN'T LIKE CHANGE. some of the stores like the pottery barn, banana republic, crate and barrel, anthropology, chico's and even kohl's won't come here. hmmmm? wonder why? maybe they know something...
Comment by cherie — August 30, 2009 @ 8:49 pm
Stores don't care about whether or not Roanoke likes change. It's all about whether the area has enough consumers who meet their profile in terms of demographics and income to support a location. Kohl's is the obvious exception on that list, but it may be due to real estate issues and a saturation of Wal-Mart and K-Mart stores. Now, of course, one could say that Roanoke's resistance to change results in not having the persons to support these chains.
Comment by KevinL — August 31, 2009 @ 12:32 pm
If "Roanoke Didn't like change" Then why did Panera Bread come to Roanoke and haveone of its highest grossing stores here? B&N has two locations? Nearest IKEA is in Woodbridge or Charlotte. Both in metro areas of 1.5-2 Million+
We are not going to get all of these.. Saturation of other compettitors also makes other stores not want to come into areas.. Plus demographics all play a major part. Plus past 1.5-2 years we have been in a down enconomy!
Comment by Scott — August 31, 2009 @ 4:00 pm
I found out last night while in the store that the store manager Jason Woodcock is leaving and that Friday the 25th is his last day. Is this a sign?
Comment by Adam — September 18, 2009 @ 9:03 am
I have heard that Ukrops is set to close by oct 1 and that Save alot has purchased the store. I hope this is not true. Just what Roanoke needs another trash grocery store!!
Comment by Chris — September 18, 2009 @ 3:12 pm
Yep Adam it sure is. I hope Jason's new job goes well. He seems like a good guy. Ukrop's closing is very sad news for all of the other people employed there. I wish thme well.
Comment by Debbie — September 18, 2009 @ 4:25 pm