The Observation Deck

Saw this online at Cleveland.com; wonder what this means for the old Giant Eagle location on Detroit; it's a nice piece of property for redevelopment:


Tops Markets LLC has agreed to sell 18 of its 46 supermarkets in Northeast Ohio to rival Giant Eagle Inc. of Pittsburgh. Terms of the transaction were not disclosed, but Tops said it expects the transaction to close in the fourth quarter of 2006.

Giant Eagle issued a news release that said 13 of the stores would be corporately-owned Giant Eagles, one would be an independently-owned Giant Eagle, and four would be Dave's Supermarkets with Giant Eagle pharmacies.

Tops, based in Williamsville, N.Y., announced on July 6 that it would be seeking buyers for all its Ohio stores by the end of the year, in order to concentrate on markets in Western New York and Pennsylvania.

Today, spokesman Denny Hopkins said announcements regarding the remaining 28 stores will be made as agreements are finalized.

The asset purchase agreement with Giant Eagle involves 18 stores, including 13 in Cuyahoga County, and 1,800 full- and part-time employees. The purchase includes the store locations and assets, excluding merchandise. Giant Eagle has also agreed to honor existing labor contracts with unions, Hopkins said.

In a news release, Tops said:
Tops and Giant Eagle have been working together with the leadership of the Local 880 United Food and Commercial Workers (UFCW) union and Local 19 of the Bakers, Confectioners, Tobacconists, and Grain Millers (BCTGM) union to preserve as many of the full and part time jobs in the region as possible.
By Janet H. Cho, jcho@plaind.com

Tops stores sold to Giant Eagle

Giant Eagle said that the stores would sell out existing inventory and close by early December, to be eventually reopened. The pharmacies at these stores would remain open, and prescription records will transfer from Tops to Giant Eagle.

Re-opening mid-December:
14100 Detroit, Lakewood (replaces existing Giant Eagle)

Re-opening January 2007:
24601 Chagrin, Beachwood
10950 Lorain, Cleveland
3628 Mayfield, Cleveland Heights
230 Howe, Cuyahoga Falls
821 Cleveland, Elyria
3750 Market, Fairlawn
21593 Lorain, Fairview Park
6259 Mayfield, Mayfield Heights
870 N. Court, Medina
80 Whittlesey, Norwalk

Re-opening late summer 2007 (and replacing existing Giant Eagles):
22777 Rockside, Bedford (independently owned)
7819 Day, Parma
1825 Snow, Parma

Re-opening as Dave's Supermarkets:
16820 Harvard, Cleveland
11501 Buckeye, Cleveland
22501 Shore Center, Euclid
4948 Turney, Garfield Heights

Boo...I was hoping it would re-open as a Dave's. I think I am Giant Eagled (and Tops) out. I wonder if this is why Channel 19 was there tonight with a camera crew? I saw them in the lot setting up so I ran in and back out in case it was to turn into some expose on something stupid because, let's face it, out of 10 local news stories for television, 9.5 are stupid and exploitative. Run!

Have the Trader Joe's rumors finally be squashed? Aldis? Dave's somewhere else in the 'wood?

Beware of Giant Eagle!!

Their prices are higher than Tops and substantially higher than Dave's. Dave's is a union store so their lower prices cannot be attributed to lower paid non union labor. Dave's prices are lower because they do not have the heavy debt load from store purchases. At least until now.

I have a fealing I might be doing more shopping at Marc's.

I am torn on this. Part of me is thrilled that I will once again be able to buy meat at the grocery store, when Tops switched over to that stuff I stopped buying it. I was also thinking that perhaps they would renovate the store, but it sounds like once again Lakewood is getting the shaft. The other stores that Giant Eagle are keeping open will be renovated but ours will only be closed for a few weeks. I am worried about no competition, especially here in Lakewood. I agree with Bill, Giant Eagles prices are higher on many items. I also heard on the news this morning that changes will be coming to the fuel perks program, what a surprise with their big competition gone why bother. Lastly I am concerned about the employees. I hate to see people lose their jobs especially people I've "known" for years. I have gotten to know many of the long time employees at Tops and I feel for them. I also worry about the people with disabilities that work at the store, I hope that Giant Eagle will work with them and allow them to keep their jobs. I am going to keep my fingers crossed on this one and hope this ends up being a good thing for Lakewood, although I am not yet convinced.

Danielle

May I suggest Rego's which is owned by a Lakewoodite.

It strikes me that the location might be perfect for a new/used bookstore, magazine shop, and coffee place with meeting rooms for rent for people that work out of their homes.


Jim

The Bunts GE presents some interesting options for redevelopment, but I think you can pretty much guarentee that since the site is controlled by GE, they will make sure that there nothing put there will compete with their "new" location across the street. My concern, however, runs a bit deeper. There has been a good deal of talk that once the W117 GE comes online, that Bunts would close. Does this recent development change that scenario? When you look at the acquisitions, it seems more likely that they are geared more towards keeping out another competitior than expanding their present base. I mean, why would you maintain the Tops as a GE at w.110 & Lorain once the new store opens at W117? Ditto for the Tops in Fairview when there is a GE 2 blocks North? The same probably holds true for the Bunts Rd. Tops. Give W 117 a couple years to get going, and then close Bunts, and develop the site?

Jeff

..

so if I understand this right, Tops in Lakewood is turning into Giant Eagle, while the Giant Eagle across the street will close, rather than have two Giant Eagles on top of each other.

Maybe the closed Giant Eagle will be turned into a home business incubator full of website designers, ebay sellers, transcriptionists, etc., if it is not turned into a relocated Marc's.

Doug

PS And add a Starbucks too for all the Starbucks lovers on here

Will we lose some locations - sure - but not all.

Agreed. I only hope that when they choose to close one or more locations, they don't take a look at the Bunts location, and figure that since its clientele can either go to W117 or River and decide to shutter it...

Jeff

One piece that hasn't made the news (that I have seen or heard) is that all current Tops employees lose their jobs and have to reapply for the new store name. They were also told that people from other Giant Eagle's will get first dibs. And they are also told they can't apply at any other Giant Eagle, Tops, or Daves until the switch happens...in November...just before the holiday. A lovely parting gift from the good people at Giant Eagle. Why oh why do so many companies decided to whack staff around the holidays? Or do we only hear about it at these times?

A Sparkle Mart or IGA might fit nicely. Avon Lake was cool until the Sparkle's there closed.

A Marc's with a Starbuck's Nook could be a triple threat. Nearly every retailer in Columbus has a StarBuck's Nook. Maybe this will help Northern ohio compete with the Columbus Juggernaut.

Tearing the old Giant Eagle down could open up a nice spot for Lifestyle Center Condominiums.

Unfortunately, I think Giant Eagle will proceed this way:

1) Giant Eagle converts current Topps to a Giant Eagle. They bought the land as well as the store, so even if market forces down the road (W. 117th store) lead them to close the Lakewood site, they still own a nice piece of property. Grocers make minimal margin (1-2%) and real estate management (buying/selling land) is a big piece of any profits they make.

Because they will let market forces play out, we will see only cosmetic changes to the the Topps store near term. You know, close Friday, re-open Monday. Not much beyond a sign change and a price increase or two. This was telegraphed by their decision to convert the store faster and earlier than other conversion timelines.

Sadly, most grocers today are not necessarily interested or profitable in stores of the current Topps square footage. Their focus and investment is in the big box format (aka W. 117th). Most look at the smaller formats as profit centers and operate them that way. This approach will probably be excerbated by the captured audience they have in Lakewood.

2) Giant Eagle will look to convert the existing Giant Eagle site (south side of Detroit) to a Get-Go gas station. Get-Go is a big part of their grocery and fuel value proposition. Again, a profit center that drives brand loyalty (buy x amount of groceries, earn fuel perks/discounts).

I could be all wrong here. Have been often before. But, my grocery background tells me this is the direction they will take. FWIW.

I have never heard of one company acquiring another without the employees having to reapply for their jobs, even if it is only a formality and even if 99% of the employees stay in the same positions. How does Giant Eagle know that Tops is not currently employing drug kingpins and mass murderers? I'm not saying Tops is doing that, but you don't know until you check. *If* Giant Eagle is pushing employees around by limiting the amount of job changing during a transitional period, maybe the union will do their job and speak up or those employees can start their own grocery store.

For Phil or others concerned about job losses, cleveland.com today states that Giant Eagle actually plans to hire a lot of employees in the bakery division (apparently Tops outsourced a lot) as well as the meat department (Tops used prepackaged like Walmart). Of course, this may mean less work for the people who work at the prepackaged meat plant or those who do the bakery outsourcing. Since those people are behind the scenes, no one cares about them...kind of like when one of my former employers ceased operations...we didn't get a special mass from the Cardinal, a visit from Dennis Kucinich, or a postcard from Mike Dewine. No visits from Kenny Krumpton or Stacie Shafer, either.

I do not feel sorry for Tops--a couple years ago they were involved in voluminous accounting shenanigans. I still shop there, but there has been a noticeable decline (not just with the meat) over the last year or two at the Lakewood store. The writing was on the wall, and I'm not referring to graffiti on lightspeed boxes.

It is puzzling to hear anyone (Bill) making blanket statements like Giant Eagle prices are high and Tops are low. Does your wife do all the grocery shopping or do you just eat fast food (or maybe bar food, since this is Lakewood)? If you can provide evidence from receipts or ad circulars, maybe you could please upload them and educate the rest of us. I remember the former President Bush being mesmerized by a checkout scanner one time lol. Personally, Marc's would be my favorite, except Lakewood's Marcs is way too small. I don't care what language people are speaking, but after awhile it gets annoying when everyone keeps bumping into you and you have to wait too long in the checkout. I realize this may help Marcs keep their costs low, but they have larger stores in other areas.

Another thing: I hope the yuppie grocery stores stay out. They belong west of the river.

fe fi fo fum

Doug

Disclaimer: I am not related to any employees or suppliers of any grocers.

I agree. Whenever I go to Marc's, I go to the one in Westlake.

I just hope Giant Eagle doesn't do what some companies do ... close their location, but not sell the building, so they can prevent any sort of competing business from opening up in their former location. I've seen it happen before, and you get an empty storefront that is detrimental to the community, but the company could care less.

Hopefully they'll sell the old building and land, and it will be redeveloped into something that benefits Lakewood.

And sure, I'd like a Trader Joe's (yuppie some people may consider it, but their prices are absurdly low), though that ain't gonna happen.

I am amused though when people are like, "we want Trader Joe's, but we don't want Aldi's" since apparently Aldi's is a sign of economic distress, as though they only locate in lower-class areas (which doesn't quite explain the Rocky River or Westlake Aldi's) ... mostly it's amusing because Aldi's and Trader Joe's are owned by the same company.

And though we have little say in what might actually go there in the old Giant Eagle location, can we wish for something?

My own wish would be for a Borders or Barnes and Noble bookstore!