Haggens closing Los Osos store

August 14, 2015

Haggen 2Haggens, a Washington-based chain of grocery stores, announced Friday plans to close 27 stores – including the Haggens located in Los Osos. The stores are slated to close in 60 days.

Earlier this year, Haggen bought 146 Albertsons, Vons, Pavilions and Safeway stores. As part of its business strategy, Haggens may sell or close additional stores in the future, according to the press release.

Through the acquisition, Haggen expanded from 18 stores with 16 pharmacies and 2,000 employees in the Pacific Northwest to 164 stores and 106 pharmacies employing more than 10,000 people in Washington, Oregon, California, Nevada and Arizona.

“Haggen’s goal going forward is to ensure a stable, healthy company that will benefit our customers, associates, vendors, creditors, stakeholders as well as the communities we serve,” said Haggen CEO Pacific Southwest, Bill Shaner. “By making the tough choice to close and sell some stores, we will be able to invest in stores that have the potential to thrive under the Haggen banner.”

The company has not yet determined how many jobs will be affected as a result of the closures and sales.

Last month, Haggens laid off dozens of Central Coast workers while other employees were moved from full-time to part-time hours.

Shaner blames competition from other grocery retailers for Haggen’s failures to retain customers.

“As we introduce Haggen throughout Southern California, Arizona and Nevada, our challenge is to establish and grow the brand in new markets, while transitioning former Albertsons/Vons customers,” Shaner said. “The competitive activity launched in response to our entry into the marketplace – while expected – has been unprecedented.”

However, some former customers said they changed grocery stores after Haggen increased pricing significantly. The customer base has fallen by almost 50 percent in some stores, one clerk said.


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SamLouis

I truly hope that Haggen closes at Marsh/Johnson. How wonderful it would be to have a Vallarta Supermarket or even a Foods-4-Less in that location!


obispan

I’d f’g love a Vallarta, or a Fart and Smile Extra (a post-Scolari’s rumor). Owners would probably do best with a dollar store, a couple of s**t-shops, and some more nail salons.


SamLouis

You’re sadly right about “…a dollar store, a couple of s**t-shops, and some more nail salons…” I’m amazed the neighboring Rite Aide store hasn’t been chopped up into a Rite Aid, a $.99 store and a Subway shop.


A Vallarta Supermarket would completely transform SLO’s grocery scene, particularly with regard to meats.


r0y

Haggen is closing 16 stores in California, 5 in Oregon, and 1 in Washington…


Scarlet

Hey slolusion: look up census data and you will find that Atascadero has a higher per capita income than SLO. Research free school lunch recipients while you’re at it. Moron.


slolusion

My mistake. I seem to have confused Atascadero with a declining, run down, homeless hangout.


Thanks for setting me straight. Atascadero was looking for a slogan. Perhaps “Atascadero. We are richer than SLO:”


And you’re right about moron; I truly am for moving here.


mbbizpro

Of course it has higher per capita income than SLO. College Students??????


slolusion

41% may be apparently the right number…


http://www.unitedwaysca.org/images/StrugglingToGetBy/Struggling_to_Get_By.pdf


Now what is to be done? For SLO you must build, build and build. I get why you folks think that is the wrong answer, but the forces upon you are global and if you fail when the higher education bubble pops(and it will pop eventually), you can hang up SLO. The only reason you even have a shot is because of your location. A lot of small towns in the country won’t even get the chance.


MajorityFan

What were they thinking? Los Osos? Wrong market for an upscale store. Unless they cash alimony checks and sell alcohol to underage minors, then they would thrive!


indigo1955

Whole Foods is expensive and that place is teeming with people from the minute they open until when the close x7. But then, Whole Foods is knowledgeable…they can explain exactly how the chicken you are buying was fed (non-GMO’s), where it lived, crap, they can almost tell you where the chicken was born on GPS. The quality just rocks. Haggen is expensive but the employees know very little about food (its origins or processing)–with the exception of a few produce people. That’s because Haggen seems greedy. Blow into town, fire the disabled employees–then start shutting down stores and start blaming. It says” “Shaner blames (that is a company CEO; Bill Shaner) competition from other grocery retailers for Haggen’s failures to retain customers”. That’s always a good strategy when you have failed to complete a quality marketing analysis and estimate the competition’s impact on your net bottom line Bill: finger-pointing.


slolusion

The WF in SLO is small. And it’s only been a whole foods for a little while. It may make it and it may not. Many of you don’t have the money to travel, but if you did, you’d see whole foods are usually busy and the one is SLO is not exceptional in the least.


obispan

WTF is OK for a few bulk items like beans and some meats. Otherwise, WTF? And it’s OK to cheat rich people buying food. Got to give them that. If it were F4L people would be pissed.


slolusion

Most People aren’t shopping at Whole Foods on price. True story: I once had a Californian ask me “you mean Texas has whole foods!?”


You all are shopping on price because your state has destroyed your purchasing power and your economic viability.


micsca

They went from 18 stores to 164 stores with this deal? Increasing their stores by 9-fold? Who lent them the money? They are privately held, and main ownership is a private equity firm. I have to believe they did their homework on this sale, but it was a risky play to do this deal.


Remember, this deal was a result of a forced sale by the Federal Trade Commission. Thank them this for this fiasco.(Just like they screwed us twice with forced sales of French hospital.)


Haggen also is being sued by Albertson for $40 million dollars over an inventory dispute. Who knows who is right.


BeenThereDoneThat

Yes the FTC forced sale on Albertson’s but they CAN’T force Haggens to buy. They did that on their own.


Pelican1

Sadly Mr. Shaner, the only real asset you ever had were those who you let go first. You are shameful.


slolusion

Told ya..


But honestly, who cares. The people here have no money nor prospects for money. Better they leave now and focus elsewhere people are doing something.


Pelican1

“Haggen’s goal going forward is to ensure a stable, healthy company that will benefit our customers, associates, vendors, creditors, stakeholders as well as the communities we serve,” said Haggen CEO Pacific Southwest, Bill Shaner

And what about all the employees with developmental disabilities that you fired first? How did they benefit? Believe me, all your vendors, stakeholders, creditors and so called stakeholders will soon become losers…like you. Good riddance.


mbbizpro

A pretty sad position to take. If they continue to close stores there will be added people unemployed. And you are right, it will effect their vendors, stakeholders and creditors as well. Foolish to hope for someone’s failure.