Retail Openings and Closures

NEW -> Contingent Buyer Assistance Program
A number of people I know living in OH moved in when there was no grocery store in that space. They were used to driving down Culver to Albertsons and Sprouts/Ralphs off Jamboree. Despite the convenience, the new Pavilions marks a bit of an adjustment to their routine. I think the new residents at The Groves + The Reserve will adopt Pavilions as their go-to market.

Second, I imagine that corporate would've accounted for the fact that the population is growing and that this store may be a loss leader until the new community is built out.
 
HMart said:
qwerty said:
The Dunkin' Donuts at tustin ranch and Valencia opened on 9/1/17.
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Nice to see amenities finally coming within walking distance of CV. With the planned retail, Stater Bros, and Hoag clinic, lots of assets. My wife hates being near the flight path of John Wayne, but maybe if this plaza is really nice I can convince her.

Bullsback said:
They also made a mistake, imo, pricing themselves too high relative to market and there is a lot of competition in the area. 
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Is it a sign that these owners of $1m+ houses are house-poor? Pavilions isn't even as pricey as Whole Foods / Bristol Farms / Gelsons, IIRC. If you can't put an upper-high end grocery in OH, where can you put it?
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Pavillions shouldn't be more pricey or materially more pricey than Albertson's or Ralphs, who is their direct competition.  Whole Foods is a different scale of price (as is Bristol Farms).  Pavillions has nice things, but there isn't anything significantly different from Pavillions and the Albertson's and Ralphs which are near by (all three have butchers and represent the more "upscale" versions of their specific grocer chains). 
 
Interesting case study...
-could be the owners are frugal (99 ranch/Zion shoppers)
-and/or live in another country (empty house)
-and/or occupied by their kids which may be frugal
-Or so high end that they don't do grocery shopping
-Or so lazy they order food/grocery online and have food delivered to them
-Too health conscious, only buy Henry's or Sprouts
-Or Costco only type shoppers
 
The local rich didn't get that way by indulging on $2.99 avocados as they whilst away the day dallying at the cheese mongers table.

Same issue with my local RSM area Pavillions. Over employed and over priced for the area. Yes, it's next to Coto, and if you're lucky you might catch a RHOC squeezing the $17 package of Charmin, but there really isn't a great reason to pay Pavillions prices.

Good spot for a Staters (reasonable prices) Spouts (Whole Foods "lite" with plenty of healthy stuff) or 99 Ranch (community supported) but not so much for a Gelsons etc.

My .02c
 
Bullsback said:
I am going to flat out say that the store mgr is full of nonsense.  I presume there was a lot of negotiating between Irvine Co and Pavillions and possibly some discounts (or discounts to other rents out there).  The reality is Irvine Company wants a grocer at the center and whatever the relationship was likely a longer term lease, so the ability for Vons to quickly shutter the store seems slim-to-none.  Longer term, maybe its possible, but OH will continue to build out. 

I'm guessing that mgr was making a more broad based statement on their own thoughts (seeing slow store and figuring it would close again) vs. having any direct knowledge on what Pavillion's greater plans are.  I will say, I have noticed a lot more "reduced" price items due to expiration dates, which I think goes back to, store is 6 weeks old and you need to build everything back up. They also made a mistake, imo, pricing themselves too high relative to market and there is a lot of competition in the area. 
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The lease is a sunk cost. They can exit and likely negotiate a buyout with TIC (if it's not in the lease already). At my company we break leases all the time.  With that said, I would agree with you that both TIC and Albertsons got into this lease with their eyes wide open. TIC needs Albertons more than than the other way around. So I would think Albertsons got a sweet deal on all the terms of the lease. But who the hell knows. TIC can be pretty cut throat.
 
I Can BBQ finally opened!!!

Actually since August 1, how I missed it is beyond me.

Yelp reviews are mixed and $24.99 is higher than what they had initially advertised, but I have to try it.

Actually went to Korea House last week and their $17.99 AYCE dinner was a good value.
 
irvinehomeowner said:
I Can BBQ finally opened!!!

Actually since August 1, how I missed it is beyond me.

Yelp reviews are mixed and $24.99 is higher than what they had initially advertised, but I have to try it.

Actually went to Korea House last week and their $17.99 AYCE dinner was a good value.
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But how are the lines?
 
AW said:
-could be the owners are frugal (99 ranch/Zion shoppers)
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Are those "frugal" stores?  I rarely step in one, but all the times I have they seem more expensive for the items I am familiar with.
 
spootieho said:
AW said:
-could be the owners are frugal (99 ranch/Zion shoppers)
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Are those "frugal" stores?  I rarely step in one, but all the times I have they seem more expensive for the items I am familiar with.
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I guess depends on what you buy.  Cereal and other packaged food is expensive. But I've seen on average, fruits, veggies, meat, seafood when on sale is much cheaper.

Zion had a green onion sale 10 bunches for 10 cents, never seen that ever on other retailers.
99 ranch had live crab for $4/lb when on sale which is cheaper and fresher than let's say Albertsons
Oxtail is usually cheaper at both compared to Ralph's, but not always true when Ralph's runs a sale
Same thing with fruits, etc
 
Paris said:
ATTENTION OH residents!
Please try to shop at Pavilions in OH plaza. Apparently they are not doing well on sales and if this continues they will close down again soon. This info coming directly from their manager  :(
If this happens we will again be left with no grocery store close by. Please give them some business and I'm sure their sales will grow as more residents move into the neighborhoods.
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Even their ad is more expensive than the Albertsons (same company) right down the road. Front page today's ad which clearly is in response to amazon...... lowering prices on the thing you buy most........... Bananas 59 cents per pound at Albertsons and 69 cents at Pavilions.

No matter, the ethnic stores regularly have them for .25 per pound. I NEVER buy bananas for over 49 cents a pound.

Rice $2.99 for 5 pounds. Are you joking? That is a good price? Asians probably don't buy long grain anyway but if they do they know to never spend over $2 for a 5 pound bag and even that is "expensive".

I doubt Pavilions is going to close any time soon. Look how long they stayed open last time.
 
AW said:
spootieho said:
AW said:
-could be the owners are frugal (99 ranch/Zion shoppers)
Click to expand...
Are those "frugal" stores?  I rarely step in one, but all the times I have they seem more expensive for the items I am familiar with.
Click to expand...

I guess depends on what you buy.  Cereal and other packaged food is expensive. But I've seen on average, fruits, veggies, meat, seafood when on sale is much cheaper.

Zion had a green onion sale 10 bunches for 10 cents, never seen that ever on other retailers.
99 ranch had live crab for $4/lb when on sale which is cheaper and fresher than let's say Albertsons
Oxtail is usually cheaper at both compared to Ralph's, but not always true when Ralph's runs a sale
Same thing with fruits, etc
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I've got some Asian friends who live in OH and they go to Zion, 99 Ranch, HMart and even Ansar.

The fact that they go to Zion (Irvine/Yale) is ironic. It was the old Vons that closed down and reopened in OH as Pavilions. They never had anyone there (the cashiers were downright mean and unhelpful) and the store was small for a grocery store. There was no reason it shouldn't have lots of biz. They were there long before the Albies was added to Irvine/Culver and the only other grocer near was Ralphs on Culver/Walnut so there was plenty of shoppers to support that store.

Zion moved in and it's packed. The parking lot is crappy looking. There are flyers all over the sidewalk. The store is not that great looking inside and yet................... OH homeowners go there, so Pavilions being a nice looking store ain't cutting it for those shoppers, the ones who cook with fresh veggies and isn't that their target? Shoppers who cook?

It's not about having a nice looking store, it's about prices.
 
AW said:
Interesting case study...
-could be the owners are frugal (99 ranch/Zion shoppers)
-and/or live in another country (empty house)
-and/or occupied by their kids which may be frugal
-Or so high end that they don't do grocery shopping
-Or so lazy they order food/grocery online and have food delivered to them
-Too health conscious, only buy Henry's or Sprouts
-Or Costco only type shoppers
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I can speak for the people I know in the neighborhood
- usually busy professionals - eat out at restaurants or order in a lot
- Amazon pantry item orders for the house essentials that are not food
- health conscious so a lot of trader joes/ whole foods organic
- big on Costco for premium products (like the Costco Japanese Wagyu beef that costs $100/pound for regular home BBQ)

We're guilty of much of the same above and usually only make a "Pavilions run" for small quick items we forgot to get or just ran out of like milk. But to keep the grocery store "close by" for convenience I sure will be making more "Pavilions runs".
But I really don't know if the "higher" price point is the problem with the OH residents, I don't think they are really "coupon clipping" "lowest bargain hunting" type of people.
 
"Toys R Us could file for bankruptcy as soon as this week, sources say

Toys R Us could file for bankruptcy as soon as this week.

Toys R Us has been working with lawyers at Kirkland & Ellis to address its debt-load.

The potential bankruptcy comes ahead of the crucial holiday season, when the retailer does the majority of its sales."
https://www.cnbc.com/2017/09/18/toy...kruptcy-as-soon-as-this-week-sources-say.html
https://www.bloomberg.com/news/arti...id-to-plan-bankruptcy-filing-as-soon-as-today


We are going to use the gift card tonight.
 
Toys R Us, Target, and Borders should never have saved Amazon back in the early 2000s.  They should have let it crash and burn. 

Borders is no more - Amazon destroyed it
Toys R Us is struggling
Target is doing okay, but could be doing better. 

Back in 2000, Amazon made a deal with ToysRUs to only sell toys through ToysRUs.  ToysRUs helped save Amazon from near bankruptcy.  Once it started to recover, Amazon started breaking it's contractual obligations by selling toys outside of ToysRUs.  This led to a big lawsuit and a counter lawsuit.  TRU technically won the lawsuit, but Amazon really won as it wasn't punished and it benefited greatly from the ordeal.
http://www.businessinsider.com/toys-r-us-bankruptcy-is-a-warning-for-kohls-amazon-deal-2017-9

P.S. My post may seem hateful, but I am a loyal Amazon customer and am very amazon integrated. 
 
spootieho said:
P.S. My post may seem hateful, but I am a loyal Amazon customer and am very amazon integrated.
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Why would we care?  Amazon is just another retail store and honestly my purchases have dropped way off.  Their prices are no longer that competitive thanks to Prime memberships locking people in to purchasing from them.  Why pay $99 for the privilege of overpaying for merchandise?  No thanks.  I find much better deals on Ebay, Target, and Best Buy.
 
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