The San Diego Union-Tribune reports on how high end Southern California grocer Gelson's is taking advantage of the Haggen bankruptcy and store sell-off to enter the San Diego market for the first time.
Gelson’s CEO Rob McDougall, the story says, "said Monday that the company has been trying for years to get into San Diego and thinks it will succeed by cornering a niche market. He also has growth aspirations. 'I think we bring an offering down there that isn’t in San Diego, at least not to the level we do,' he said. 'We’re more high-end. We really want to attract that foodie customer that is looking for the best quality'."
The story notes that "Gelson’s sought eight stores, and was approved by the court for six locations, two of them in San Diego County, on Friday. The two other locations are still in dispute. Gelson’s paid $36 million."
Gelson’s CEO Rob McDougall, the story says, "said Monday that the company has been trying for years to get into San Diego and thinks it will succeed by cornering a niche market. He also has growth aspirations. 'I think we bring an offering down there that isn’t in San Diego, at least not to the level we do,' he said. 'We’re more high-end. We really want to attract that foodie customer that is looking for the best quality'."
The story notes that "Gelson’s sought eight stores, and was approved by the court for six locations, two of them in San Diego County, on Friday. The two other locations are still in dispute. Gelson’s paid $36 million."
- KC's View:
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One of the advantages that Gelson's has right now is that, since its February 2014 acquisition by investment group TBG, it actually has some money to play with. I don't think this is a small deal for Gelson's - it is looking to go from 18 stores to 26, and that takes a lot of talent, resources, and infrastructure ... and unlike Haggen, which essentially just changed the signs, it will have to make major changes to make these stores live up to its fundamental value proposition.
