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Higher Prices, Mediocre Selection, Bad Marketing... Yeah, That's A Plan
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Like a slow-motion train wreck you could see coming several miles away, Haggen, the tiny Washington state grocery chain that bought a lot of stores all over the West from Safeway-Albertsons and choked on the acquisition, has filed for Chapter 11 bankruptcy only a few months into operating the new stores. I don't think I've seen too many acquisitions go this poorly this fast. The sins were many: They paid too much. They didn't renovate the stores. They decided to charge ridiculous prices for everything. They pissed off the unions from day one. They didn't buy television ads or many radio ads, either. They didn't offer anything we don't get better from Ralphs, Vons, Stater Bros., Trader Joe's, Bristol Farms, Gelson's, Whole Foods, Sprouts... oh, did I mention that this is one of the most competitive supermarket regions in the nation? You want a textbook example of how not to grow your business, these guys are it. I'm not sure Chapter 11 will save them, either. (Los Angeles Times)
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