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Vons hops into giant supermarket market with Simi Valley sprawler.


Vons Companies Inc. opened a giant-sized supermarket last week that offers everything from party planning to dry cleaning dry cleaning, process of cleaning fabrics without water. Special solvents and soaps are used so as not to harm fabrics and dyes that will not withstand the effects of ordinary soap and water. Dry cleaning began in France about the middle of the 19th cent.  services.

Vons is following behind the cart of Salt Lake City-based Smith's Food & Drug Centers, which first introduced the large, multi-faceted supermarket concept to Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region,  in 1990. Dublin, Calif.-based Lucky Stores Lucky Stores is an American grocery chain founded in Alameda County, California in 1935. Lucky is currently operated by Supervalu in Southern California and Nevada and by Save Mart in Northern California.  Inc., meanwhile, plans to open its own such superstore in early 1994, said Lucky spokeswoman Judy Decker.

The new Vons Super Combination Store, located in Simi Valley Simi Valley (sē`mē, sĭm`ē), city (1990 pop. 100,217), Ventura co., SW Calif. in an oil, fruit, and farm region; laid out 1887, inc. 1969. , is a mammoth 80,000 square feet. In contrast, Vons' already existing supermarkets average 50,000 square feet.

Aside from the merchandise offered at conventional supermarkets, this store sports a Bank of America
See also:  and


Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world.
 outlet, pharmacy, photo department, party center and United Parcel Service United Parcel Service, Inc. (NYSE: UPS), commonly referred to as UPS, is the world's largest package delivery company, delivering more than 15 million packages[1] a day to 6.1 million customers in over 200 countries and territories around the world.  shipping department. Those who shop when they're hungry can choose from a Panda Express Panda Express is a fast casual restaurant chain serving Americanized Chinese cuisine. It operates mainly inside the United States of America, in shopping malls, supermarkets, airports, train stations, strip plazas, theme parks, and college campuses. , Baja Grill and Classico Pizza shop, all inside the store.

In contrast to a conventional grocery store, where customers walk in and are immediately confronted with a produce or other food section, customers at the Super Combination store are greeted with the floral department, pharmacy and food court.

"You don't get to the grocery store section until you've experienced everything else," said Douglas Christopher, a securities analyst with Crowell Weedon & Co., a Los Angeles-based brokerage firm.

This new store will probably have to bring in revenue of between $500,000 and $1 million per week to succeed, he added. It carries 85,000 different items, while other Vons stores sell between 20,000 and 45,000, Christopher added.

The store will probably thrive because it not only carries most of what a customer would need, but also offers these items at Vons' traditionally low prices, he said.

Oversized o·ver·size  
n.
1. A size that is larger than usual.

2. An oversize article or object.

adj. o·ver·size also o·ver·sized
Larger in size than usual or necessary.
 stores fare well only in certain neighborhoods, so Vons is picking sites for future Super Combination stores carefully, said Vons spokeswoman Julie Reynolds. Construction is under way in Inglewood for a second such store, which is slated to open in early 1994.

Competitors say Vons' new supermarkets don't pose a threat to them. "The few stores Vons or anyone would open wouldn't be competition," because there won't be too many of them, said Bob Bolinder, executive vice president at Smith's.

"We look at Vons opening up as verification of the validity of our type of store," he said. Smith's stores are each about 75,000 square feet.

Smith's has opened 18 super supermarkets in Southern California since 1990, and Bolinder said those stores' sales have been in existence more than a year are up "nicely."

The chain plans to open 10 to 12 more such stores this year, he said.

"The real proof of the pudding proof of the pudding
n. Informal
The ultimate evidence attesting the true nature of something: The proof of the pudding is in the election results, not the polling.
" that Smith's concept is working is that Vons is building a store just like Smith's, Bolinder said.

In fact, just a year and a half ago, Vons officials said they weren't interested in building oversized grocery stores, Christopher said.

"They (Vons) borrowed a lot of very good ideas from Smith's," said Edward Comeau, senior vice president with Shearson Lehman Bros BROS Brothers
BROS Benefits and Retirement Operations Section (King County, Washington)
BROS Barnes and Richmond Operatic Society (London, UK) 
., a New York-based brokerage firm.

Reynolds at Vons, however, said Vons was not copying Smith's and cited distinct differences between Vons' Super Combination Store and the Smith's Food & Drug Centers.

The Vons store has a Baja Grill, which is an authentic Mexican restaurant, a "party center" where customers can get party planning services, a center where customers can mail UPS packages, a stationery store, and a Rubbermaid store, none of which is in Smith's stores, Reynolds said.

Lucky's, meanwhile, plans to open a 100,000-square-foot super grocery store in early 1994, Decker said. Construction has not yet begun.

Lucky's is also looking at sites for super stores in Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. , Chula Vista and inner-city Los Angeles, but it has no firm commitments, Decker said.

The large Lucky supermarkets will combine the services of its Sav-On Drugs subsidiary and Lucky supermarkets, she said.
COPYRIGHT 1993 CBJ, L.P.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:Vons Companies Inc.; Simi Valley, California
Author:Glover, Kara
Publication:Los Angeles Business Journal
Date:Mar 8, 1993
Words:641
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