Jan 23 2006
An so Albertson’s is about to be no more, so we may conclude.
Albertsons has been sold (pending some final but expected approvals) to a group of business interests, and the second-largest grocery store chain in the country, one of the largest enterprises ever created in Idaho (and one of that state’s bragging points), likely will be no more, and most of its currently large Boise presence, and the associated business activities, likely will move elsewhere.
Is that too firm a conclusion? Possibly; there’s nothing in the massive buyout that explicitly keeps the Albertsons stores and operations from going on and doing business exactly as they have been doing. But if that’s all that lies ahead, why go through the whole business of a sellout and buyout? Something different is in the wings.
There’s no positive conclusion what that will be. But some careful thinking was underway in downtown Boise on Monday, and underlying it is the point that Albertsons is going not to a single operator, but to a consortium with different interests. Some are in retail. But others are in real estate, and still others have other interests.
Credible current speculation runs along these lines:
Supervalu, which apparently gets the Idaho and Northwest Albertsons stores among many other properties, would replace Albertsons as the second-largest grocery company nationally. But there are quirks: Will all those stores retain the Albertson’s name? (Don’t count on it.) How does that part of the deal mesh with the part relating to Cerebrus investments, which seems to be approached more from a real estate and property management perspective?
As for Boise headquarters, the immediate word was: no change. But then, that was the word out of Albertsons leadership three weeks ago. Current expectations: Most corporate and administrative offices will be stripped out of Boise, though probably one or two divisions will be left in place. (That appears to be a standard procedure with some of the purchasing companies.) Not everything will be moved out. Most of it will be.
The grocery world, and Boise’s business world, has been upended.Share on Facebook