Save-A-Lot owner will probably take a loss on struggling grocery chain

[Sherman A1]

Not long ago, Save-A-Lot was one of the supermarket industry’s rising stars, adding stores and raking in profits for its parent company.

Now, two and a half years after being sold to a Canadian private equity firm, the discount chain is struggling. Weighed down by $728 million in debt and losing market share to German-owned chains Aldi and Lidl, Save-A-Lot reportedly is for sale once again.

One analyst thinks no buyer will offer close to the $1.4 billion that parent company Onex paid in 2016. “A responsible offer would be for Onex to sell Save-A-Lot for $1 and assume half the debt,” says Burt Flickinger III, managing director of Strategic Resource Group.

Save-A-Lot was founded in Cahokia in 1977 as a hard discount grocer, meaning that it offered a limited assortment at low prices. It was sold to Wetterau, a Hazelwood-based wholesaler, in 1988, and Minneapolis-based Supervalu bought Wetterau in 1993.

https://www.stltoday.com/business/columns/david-nicklaus/save-a-lot-owner-will-probably-take-a-loss-on/article_703b627c-e87b-510b-b831-28cdab3c9e61.html

[Dennis Donovan]

1. There's a Save A Lot in my old neighborhood...

It's a depressed area that brightened a bit with the addition of a new shiny mini-supermarket a few year ago. I'd hate to see it go under.

[Sherman A1]

2. I agree that it would be a shame to see them go under

hopefully they will right the ship and get back to smooth sailing, but I am thinking that is not very likely.

[onethatcares]

3. they serve some food deserts

no big chain wants to chance the possible losses.

Maybe turning it into a co-op would help. By co-op I mean each shareholder having a share in what goes in the door and what goes out the door. Each share holder would have a vote in what wages and benefits were. It's a crazy idea, but why not?

I'm fortunate, I live in an area where 6 of the larger chains compete for my business. Why don't three of them move their stores a bit and compete against the convenience store profit making model? Save A Lot fills a niche but even they aren't a presence there.

Of course, the bust out method is being used by the hedge fund that bought them. Load the debt, take what you want, lay off employees, cut wages, and go belly up. We see that all the time.

[Blue_true]

7. I am lucky enough to have plenty of grocery shopping options also.

Generally depressed areas never have shopping because chains prefer to locate in more upscale areas, often tripping over eachother, sucks but that is the reality.

[winstars]

11. Ya bust the joint out... GOODFELLAS!!!!

[Codeine]

4. Opposite here.

There was one in my area of Southern California that was a total shitshow. Skanky dump.

[demtenjeep]

5. the one by our house was out of business within 6 months

and I thought it was for Veterans

[Quackers]

12. That would be AAFES. nt

[Archae]

6. There's a Sav-A-Lot on 8th streeet here in Sheboygan...

But it's going to close up soon.

It'll leave that area with no grocery stores for literally miles around.

Near me, here on the west side of Sheboygan, there are Pick And Save, Aldis, Meijers, and Festival.

[mcar]

8. No comparison between Save a Lot and Aldi's

Low prices, yes, but SAL is awful, Aldi's has quality food.

[NurseJackie]

9. This.

[mcar]

10. I can get whole organic chickens for $1.49/lb at Aldis

No comparison anywhere.

[Sherman A1]

14. Agreed

And their prices are not all that low. A few things here and there, certainly but overall one can do better down the street at the store with Union Employees.

[Quackers]

13. I absolutely hate them.

The Savealot in my town is always out to screw people over. Here are a few examples that I have personally witnessed. They sell savealot gift cards but will not accept them. They do not accept coupons, even if it’s savealot coupons. The state suspended their ability to accept WIC, although I don’t know why. There are roaches visible in the potatoes and onion bags. They were caught and investigated for changing the expiration date on egg cartons. During the Easter holiday, they raised egg prices to $4.79 per dozen from $2.29. Days before the first of the month, when the poor receives their food stamps, they increase prices on milk, chicken, beef, and bread. They lower it again around the 10th to the 12th. When they could accept WIC as payment, they would always charge more for WIC approved items. For example, WIC only pays for 1% milk. So 1% milk would always be 50-75 cents more per gallon than whole, 2%, or skim. This may be why they lost the ability to accept payments. Last but not least, they don’t have public restrooms. There was a 75yo woman who couldn’t hold it and ask to use the restroom. They told her no. As she tried to make it to the front of the store to leave, she lost control of her bladder and urinated on herself and the floor. Ours is by far the worst savealot I have ever seen. Wow, just realized how much I typed.

[Quackers]

15. I wanted to add

That I also noticed they have a sign now when you enter. You have to surrender baby strollers, diaper bags, and large purses to the cashier upon entering.