Haggens just bought a bunch of Albertson's stores and now they are shutting a lot of the stores down. I have heard that they ran out of money, but I am not sure how accurate this is. Does anyone know the real scoop of what is going on?
In L.A., they bought Albertson stores that were in non-urban area but there were at least two problems. While they mostly replaced stores in non-urban (the 'hood) areas, they didn't look at competing stores like Trader Joe's and Whole Foods, which have wider selections. Haggen's prices were also higher than Kroger(Ralph's/Food for Less) stores.
I do not have a Hagen around me, but I do recall their prices being very expensive. So basically the company did not think things out very well before opening these stores?
