Bellingham-based grocery chain Haggen has converted two Safeways and one Albertsons, three Tucson stores in total, to the Haggen brand. They are:

• Former Safeway at 10380 E. Broadway Blvd, Tucson;
• Former Albertsons at 1350 N. Silverbell Road, Tucson; and
• Former Safeway at 8740 E. Broadway Blvd, Tucson

According to public record, Hagen has also purchased the former Safeway store at 8740 East Broadway Blvd, for $3.9 million ($74 PSF) for the 52,566-square-foot anchor building, constructed in 1982.

As was reported December 22, 2014, in The Real Estate Daily News when AB Acquisition LLC (Albertsons) and Safeway Inc. (NYSE: SWY) first announced a merger subject to approval by the Federal Trade Commission (FTC), to sell 168 stores across eight states to four buyers.

Haggen purchased the majority of these stores, a total of 146 stores across Arizona, California, Nevada, Oregon and Washington. The store conversion started in February in Oregon and has proceeded rapidly to convert all 146 stores, 83 stores in California, 20 Oregon stores, 33 in Nevada and 10 Arizona stores were converted throughout March, April and May.

“This momentous acquisition is a once-in-a-lifetime opportunity to rapidly expand the Haggen brand across the West Coast,” said John Caple, chairman of the Haggen board of directors and partner at Comvest Partners, a private investment firm that owns the majority share of Haggen. With the deal closed, Haggen has focused on seamlessly converting these 146 stores to the Haggen brand with each conversion taking but a couple of days to complete.

The company said in a written statement that during the transformation, each store’s employees were invited to become Haggen employees. Union leaders also reported that Haggen has assumed Albertsons’ labor contract and that workers will keep their pay, benefits, pension and seniority.

Haggen expanded from owning 18 stores with 16 pharmacies to now 164 stores with 106 pharmacies; from 2,000 employees to more than 10,000 employees; and from a Pacific Northwest regional company with locations in Oregon and Washington to a major regional grocery chain now with locations in Washington, Oregon, California, Nevada and Arizona.

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[mepr-show rules=”58038″]Sale price was $3,865,093 closed 5/29/2015 in an all cash deal.[/mepr-show]

BOISE, ID and PLEASANTON, CA – AB Acquisition LLC (Albertsons) and Safeway Inc. (NYSE: SWY) jointly announced Friday that they have entered into agreements, subject to approval by the Federal Trade Commission (FTC), to sell 168 stores across eight states to four buyers:

• >> Associated Food Stores (AFS) will purchase eight stores in Montana and Wyoming;
• >> Associated Wholesale Grocers (AWG)/Minyards will purchase 12 stores in Texas;
• >> SUPERVALU will purchase two stores in Washington; and
• >> Haggen will purchase 146 stores across Arizona, California, Nevada, Oregon and Washington.

Divestiture of these stores is being undertaken in order to secure FTC clearance of the companies’ proposed merger, which was announced in March with the Albertsons Safeway merger and is expected to close in January 2015. The purchase agreements with the four buyers are all subject to approval by the FTC.

Arizona stores on the divestiture list include:

• >> Albertsons 174 East Sheldon Prescott AZ 86301
• >> Albertsons 1980 Mcculloch Blvd Lake Havasu City AZ 86403
• >> Albertsons 7450 E Highway 69 Prescott Valley AZ 86314
• >> Albertsons 1350 N Silverbell Road Tucson AZ 85745
• >> Albertsons 34442 N Scottsdale Road Scottsdale AZ 85262
• >> Albertsons 11475 E Via Linda Scottsdale AZ 85259
• >> Albertsons 1416 E Route 66 Flagstaff AZ 86001
• >> Safeway 8740 East Broadway Tucson AZ 85710
• >> Safeway 10380 East Broadway Boulevard Tucson AZ 85748
• >> Safeway 3655 W. Anthem Way Anthem AZ 85086

Under the terms of the purchase agreements, the buyers will acquire the stores, equipment and inventory, and they intend to hire most, if not all, of the store employees upon the closing of the purchase of the stores.. For a complete list of stores to be divested, Albertsons Store List and Safeway Store List.

“We’re pleased to have found strong buyers for these stores and to have completed this important step toward combining Albertsons and Safeway,” said Safeway President and Chief Executive Officer Robert Edwards, who will serve as the combined company’s President and CEO. “We look forward now to the transaction’s close, so we can begin working together to enhance the loyalty of grocery shoppers by delivering high quality products, great service and lower prices to become the favorite local supermarket in every neighborhood we serve.”

Pacific Northwest grocery chain Haggen will expand from 18 stores with 16 pharmacies to 164 stores with 106 pharmacies; from 2,000 employees to more than 10,000 employees; and from a Pacific Northwest company with locations in Oregon and Washington to a major regional grocery chain with locations in Washington, Oregon, California, Nevada and Arizona.

Founded in 1933, Haggen, Inc. is one of the Pacific Northwest’s leading grocery chains. The Bellingham, Washington-based company operates stores in Washington and Oregon under the Haggen Northwest Fresh banner. It is the state’s sixth-largest private company with the majority of shares owned by Comvest Partners. Haggen is dedicated to providing its guests with the best of the Northwest. For more than 80 years, it has supported regional farms, ranches, fisheries and other businesses, creating a lasting and sustainable local food economy. Haggen is also deeply rooted in the communities it serves, providing support to local events and partnerships

The company will be led by CEOs John Clougher and Bill Shaner. Clougher, CEO, Pacific Northwest, will have primary responsibility for the northern division of Washington and Oregon. Shaner, CEO, Pacific Southwest, will have primary responsibility for the southern division of California, Nevada and Arizona. The two will work together to steward the company’s commitment to its employees, customers, business partners and stakeholders.

After the close of the transaction in early 2015, Haggen will convert all of the acquired Albertsons and Safeway stores to the Haggen banner in phases during the first half of 2015. All Albertson’s LLC and Safeway store employees will have the opportunity to become employees of Haggen as their individual stores are transitioned to the Haggen banner. Haggen plans to retain the current store management teams.  To learn more visit haggen.com.

The ICSC Retail Report says retailers are set to open about 40,000 U.S. stores between November 2014 and November 2015, a 1.2% increase in store opening plans compared with year-end 2013, according to an RBC Capital Markets database of 2,000 chains. The retailers reported plans to open 77,547 stores between November 2014 and November 2016 over the next two years, an increase of 0.7 percent relative to the projections at year-end 2013, the firm reports.

Men’s apparel is likely to see the greatest jump in openings over the next 24 months, with 373 new stores in the pipeline, representing an increase of 3%, according to RBC. Men’s Wearhouse announced plans to open the first flagship store of its upscale Joseph Abboud brand this spring, on New York City’s Madison Avenue.

Food is a fast-growing category too. In-N-Out Burger is rolling out in Texas, while California-based Pieology is aiming for at least 20 new sites across the country, and Utah-based Kneaders Bakery & Cafe is expanding into Colorado and Texas. Starbucks is serving up two new concepts this coming year, an “express” shop that concentrates on mobile orders and a digital-pay platform, and a 15,000-square-foot Starbucks Reserve Roastery and Tasting Room format that will roll out in Seattle this month. The company will add about 1,600 units in total worldwide in 2015, about 50 more than in 2014.

Supermarkets are growing as well. Whole Foods is expanding aggressively, including a Canadian push. The chain has plans to open 40 stores in 2015 and about as many again the following year. That represents square-footage growth about 10% square footage growth over its existing 15-million-square-feet, said Co-CEO Walter Robb. German-owned Aldi’s acquisition of Bottom Dollar Food this year was part of a strategy to add 650 U.S. stores by 2018. In Houston alone, HEB and Kroger are flexing their muscles with plans for 15 to 20 combined new stores over the next 18 months. And Publix, Safeway and Save-A-Lot are planning for about 30 each, while Grocery Outlet, Harris Teeter and Walmart Neighborhood Market are each bringing out roughly 20 in 2015.

For the fiscal year ending Jan. 31, 2016, Walmart expects to roll out between 26 million and 30-million-square-feet of net retail space worldwide, down from 32 million to 34 million square feet in 2014, owing to a moderation in large-format store growth and accelerated e-commerce investments, the company says.

International tenants continue to seek U.S. space, meanwhile, because they perceive that this country is healthier than most. “A lot of U.S. companies are beating earnings, and the metrics of unemployment and housing are improved, which is attracting new brands,” said Michael Hirschfeld, a senior vice president and head of the luxury practice group at JLL. In fact, European luxury retailers “are now more aggressive in the U.S. than anywhere in the world,” he added. Joe & the Juice, a Denmark-based coffee, juice and sandwich seller; Japan-based Yo! Sushi; and U.K.-based Hamleys toys are among the retailers from overseas.

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