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Home My WebLink About20162401.tiffAugust 5, 2016 Petitioner: VITAMIN COTTAGE 12612 W ALAMEDA PKWY LAKEWOOD, CO 80228-2824 CLERK TO THE BOARD PHONE (970) 400-4226 FAX (970) 336-7233 WEBSITE: www.co.weld.co.us 1150 O STREET P.O. BOX 758 GREELEY CO 80632 Agent (if applicable): ASSESSMENT TECHNOLOGIES LTD 40 NE LOOP 410 STE 607 SAN ANTONIO, TX 78216-5883 RE: THE BOARD OF EQUALIZATION 2016, WELD COUNTY, COLORADO NOTICE OF DECISION Docket #: 2016-2401 Appeal #: 2008211237 Hearing Date: 8/4/2016 10:00 AM Dear Petitioner: On the day indicated above, the Board of County Commissioners of Weld County Colorado convened and acting as the Board of Equalization, pursuant to C.R.S. Section 39-8-101 et seq., considered petition for appeal of the Weld County Assessor's valuation of your property described above, for the year 2016. The Assessment and valuation is set as follows: Actual Value as Actual Value as Account # Decision Determined by Assessor Set by Board P0906186 Deny - Administrative Deny $188,640 $188,640 A denial of a petition, in whole or in part, by the Board of Equalization must be appealed within thirty (30) days of the date the denial is mailed to you. You must select only one of the following three (3) options for appeal: 1. Appeal to Board of Assessment Appeals: You have the right to appeal the County Board of Equalization's decision to the Colorado Board of Assessment Appeals. A hearing before that Board will be the last time you may present testimony or exhibits or other evidence, or call witnesses in support of your valuation. If the decision of the Board of Assessment Appeals is further appealed to the Court of Appeals pursuant to C.R.S. Section 39-8-108(2), only the record of proceedings from your hearing before the Board of Assessment Appeals and your legal brief are filed with the appellate court. All appeals to the Board of Assessment Appeals filed after August 10, 2016, MUST comply with the following provisions of C.R.S. Section 39-8-107(5): (5)(a)(I) On and after August 10, 2011, in addition to any other requirements under law, any petitioner appealing either a valuation of rent -producing commercial real property to the board of assessment appeals pursuant to section 39-8-108(1) or a denial of an abatement of taxes pursuant to section 39-10-114 shall provide to the county board of equalization or to the board of county commissioners of the county in the 0040/ case of an abatement, and not to the board of assessment appeals, the following information, if applicable: (A) Actual annual rental income for two full years including the base year for the relevant property tax year; (B) Tenant reimbursements for two full years including the base year for the relevant property tax year; (C) Itemized expenses for two full years including the base year for the relevant property tax year; and (D) Rent roll data, including the name of any tenants, the address, unit, or suite number of the subject property, lease start and end dates, option terms, base rent, square footage leased, and vacant space for two full years including the base year for the relevant property tax year. (II) The petitioner shall provide the information required by subparagraph (I) of this paragraph (a) within ninety days after the appeal has been filed with the board of assessment appeals. (b)(I) The assessor, the county board of equalization, or the board of county commissioners of the county, as applicable, shall, upon request made by the petitioner, provide to a petitioner who has filed an appeal with the board of assessment appeals not more than ninety days after receipt of the petitioner's request, the following information: (A) All of the underlying data used by the county in calculating the value of the subject property that is being appealed, including the capitalization rate for such property; and (B) The names of any commercially available and copyrighted publications used in calculating the value of the subject property. (II) The party providing the information to the petitioner pursuant to subparagraph (I) of this paragraph (b) shall redact all confidential information contained therein. (c) If a petitioner fails to provide the information required by subparagraph (I) of paragraph (a) of this subsection (5) by the deadline specified in subparagraph (II) of said paragraph (a), the county may move the board of assessment appeals to compel disclosure and to issue appropriate sanctions for noncompliance with such order. The motion may be made directly by the county attorney and shall be accompanied by a certification that the county assessor or the county board of equalization has in good faith conferred or attempted to confer with such petitioner in an effort to obtain the information without action by the board of assessment appeals. If an order compelling disclosure is issued under this paragraph (c) and the petitioner fails to comply with such order, the board of assessment appeals may make such orders in regard to the noncompliance as are just and reasonable under the circumstances, including an order dismissing the action or the entry of a judgment by default against the petitioner. Interest due the taxpayer shall cease to accrue as of the date the order compelling disclosure is issued, and the accrual of interest shall resume as of the date the contested information has been provided by the taxpayer. Appeals to the Board of Assessment Appeals must be made on forms furnished by that Board, and must be mailed or delivered within thirty (30) days of the date the denial by the Board of Equalization is mailed to you. The address and telephone number of the Board of Assessment Appeals are: Board of Assessment Appeals 1313 Sherman Street, Room 315 Denver, Colorado 80203 Telephone Number: 303-864-7710 Email: baa@state.co.us Fees for Appeal to the Board of Assessment Appeals: A taxpayer representing himself is not charged for the first two (2) appeals to the Board of Assessment Appeals. A taxpayer represented by an attorney or agent must pay a fee of $101.25 per appeal. OR 2. Appeal to District Court: You have the right to appeal the decision of the Board of Equalization to the District Court of the /county wherein your property is located: in this case that is Weld County District Court. A hearing before The District Court will be the last time you may present testimony or exhibits or other evidence, or call witnesses in support of your valuation. If the decision of the District Court is further appealed to the Court of Appeals pursuant to C.R.S. Section 39-8-108(1), the rules of Colorado appellate review and C.R.S. Section 24-4-106(9), govern the process. OR 3. Binding Arbitration: You have the right to submit your case to binding arbitration. If you choose this option, the arbitrator's decision is final and you have no further right to appeal your current valuation. C.R.S. Section 39-8-108.5 governs this process. The arbitration process involves the following: a. Select an Arbitrator: You must notify the Board of Equalization that you will pursue arbitration. You and the Board of Equalization will select an arbitrator from the official list of qualified people. If you cannot agree on an arbitrator, the District Court of the county in which the property is located (i.e., Weld) will select the arbitrator. b. Arbitration Hearing Procedure: Arbitration hearings are held within sixty (60) days from the date the arbitrator is selected, and are set by the arbitrator. Both you and the Board of Equalization are entitled to participate in the hearing. The hearing is informal. The arbitrator has the authority to issue subpoenas for witnesses, books, records documents and other evidence pertaining to the value of the property. The arbitrator also has the authority to administer oaths, and determine all questions of law and fact presented to him. The arbitration hearing may be confidential and closed to the public if you and the Board of Equalization agree. The arbitrator's decision must be delivered personally or by registered mail within ten (10) days of the arbitration hearing. c. Fees and Expenses: The arbitrator's fees and expenses are agreed upon by you and the Board of Equalization. In the case of residential real property, the fess may not exceed $150.00 per case. For cases other than residential real property, the arbitrator's total fees and expenses are agreed to by you and Board of Equalization, but are paid by the parties as ordered by the arbitrator. If you have questions concerning the above information, please call me at (970) 400-4226. Very truly yours, Esther E. Gesick, Clerk to the Board Weld County Board of County Commissioners and Board of Equalization Cc: Christopher Woodruff, Weld County Assessor Esther Gesick Subject: FW: CBOE APPEAL FOR VITAMIN COTTAGE From: Vicki Hanks [mailto:vhanks@atechltd.com] Sent: Tuesday, July 26, 2016 2:39 PM To: Tyson Green <tgreen@co.weld.co.us>; ATech Agent for Natural Grocers <agent-ng@atechltd.com> Subject: RE: CBOE APPEAL FOR VITAMIN COTTAGE Assessment Technologies requests an Administrative Denial on the following account: P0906186 Thank you. Vicki B. Hanks ASSESSMENT Vicki B. Hanks Work: 210.270.1451 1 Main: 210.222.1221 I vhanks(a atechltd.com Assessment Technologies, Ltd. 140 NE Loop 410, Ste. 6071 San Antonio, TX 782161 www.atechltd.com From: Tyson Green [mailto:tgreen@co.weld.co.us] Sent: Tuesday, July 26, 2016 2:15 PM To: ATech Agent for Natural Grocers <agent-ng@atechltd.com> Subject: CBOE APPEAL FOR VITAMIN COTTAGE Mr. Hausman, This email is in regards to the appeal that you filed for Vitamin Cottage in Weld County Colorado, account #P0906186. There will be a hearing scheduled with the County Board of Equalization the first week of August. I am writing to find out if your company will be attending this hearing. If you are not planning on attending then would you like to request an administrative denial. This moves your appeal forward to the state level. Please let me know either way. Thank you, Tyson Green Weld County Assessor's Office t ,244 10-.2140( A5- oogii- NOTICE OF DETERMINATION Christopher M. Woodruff Weld County Assessor 1400 N 17th Ave Greeley, CO 80631 ACCOUNT NO. TAX YEAR TAX AREA Date of Notice: 07/10/2016 Telephone: (970) 353-3845 Fax: (970) 304-6433 Office Hours: 8:00AM - 5:00PM LEGAL DESCRIPTION/ PHYSICAL LOCATION P0906186 2016 0600 PROPERTY OWNER VITAMIN COTTAGE 12612 W ALAMEDA PKWY LAKEWOOD. CO 80228-2824 PROPERTY CLASSIFICATION GR ELSIR LOT C ELK LAKES SHOPPING CENTER PUD 1ST REPLAT 2819 35 AV GREELEY CO VITAMIN COTTAGE RECEIVFD JUL 2520 WELD COU TY COMMISSION RS ASSESSOR'S VALUATION ACTUAL VALUE PRIOR TO REVIEW ACTUAL VALUE AFTER REVIEW PERSONAL PROPERTY 188,640 TOTAL $188,640 188,640 $188,640 The Assessor has carefully studied all available information, giving particular attention to the specifics included on your protest. The Assessor's determination of value after review is based on the following: PP01 - Your personal property has been valued in accordance with Colorado law. Other personal property, similar in nature, has been consistently valued using the same statutory methods. If you disagree with the Assessor's decision, you have the right to appeal to the County Board of Equalization for further consideration, § 39-8-106(1)(a), C.R.S. The deadline for filing personal property appeals is July 20. The Assessor establishes property values. The local taxing authorities (county, school district, city, fire protection, and other special districts) set mill levies. The mill levy requested by each taxing authority is based on a projected budget and the property tax revenue required to adequately fund the services it provides to its taxpayers. The local taxing authorities hold budget hearings in the fall. If you are concerned about mill levies, we recommend that you attend these budget hearings. Please refer to last year's tax bill or ask your Assessor for a listing of the local taxing authorities. Please refer to the reverse side of this notice for additional information, Agent (If Applicable). -.effitnDt 9 (46 Lid 2016-2401 15-DPT-AR ARL VOL 2 1-84 Rev 01-16 CTCG) Weld County �MF2R 9414 7266 9904 2048 7014 41 sr- roI P•tc,. County Board of Equalization Hearings will be held from August tat through August 5th at 1150 O Street. To appeal the Assessor's decision, complete the Petition to the County Board of Equalization shown below, and mail, We online, or deliver a copy of both sides of this form to: Weld County Board of Equalization 1150 U Street, P.O. Box 758 Greeley, CO 80631 Telephone: (970) 356-4000 ext, 4225 rtline http://www.co.weld.caus/apps/cboe/ To preserve your appeal rights, your Petition to the County Board of Equalization must be postmarked or delivered on or before July 20 for personal property — after such date, your right to appeal is lost. You may be required to prove that you filed a timely appeal; therefore, we recommend that all correspondence be mailed with proof of mailing. You will be notified of the date and time scheduled for your hearing. The County Board of Equalization Must mail a written decision to you within five business days following the date of the decisi ort The County Board of Equalization must conclude hearings and render decisions by August 5, § 39-8-iO7(2), C.R.S. If you do not receive a decision from the County Board of Equalization and you wish to continue your appeal: you must file an appeal with the Board of Assessment Appeals by September 10, § 39...2-i 25(1)(e), CR8. if you are dissatisfied with the County Board of Equalization's decision and you wish to continue your appeal, you must appeal within 30 days of the date of the County Boards written decision to ONE of the following: Board of Assessment Appeals 1313 Sherman Street, Room 315 Denver, 00 80203 (30 7) 866-5880 wwavw.dola.colorado.govlbaa Binding Arbitration For a list of arbitrators, contact the County Commissioners at the address listed for the County Board of Equalization. if the date for filing any report schedule, claim, tax return; statement, remittance, or other document falls upon a Saturday, Sunday, or log& holiday, it shall be deemed to have been timely filed if filed on the next business day, § 39-1-420(3), C.RS. District Court Contact the District Court in the County where the property 4s located. See your local telephone book for the address and telephone number. PETITION TO COUNTY BOARD OF EQUALIZATION What is your estimate of the property's value as of June 30„ 2014? (Your opinion of value in terms of a specific ditgilar amount is required for real property pursuant to $ 39-8-1060 C.R.S.) $ 0I What is the basis for your estimate of value or your reason for requesting a review? (Please attach additional sheets as necessary and any su000rtina documentation i e corrtmr hik aleµ, rent roll, original installed cost, appraisal, etc.) Property not assessed at fair market values including adjustments for obsolescence. ATTESTATION I, the undersigned owner or agent' of the property identified above, affirm that the statements contained herein and on :any attachments hereto are true and complete. 210.22:1.12-1-1 7 NIA, Signatu Telephone Number Date C%stn n5 cdeth. lid - ens Assessment Technologies Ltd By: James F. Hausman 210.222.1221 Agent_ng@' atechltd.com nttuur7 ;etret UT autnonzation signed toy property owner. 1a-DPT-AF( ML V0L 2 1-84 Ri v 01..36 NATIJRAI, GROG&RS NiteruJ Setri June 9, 2016 Weld County Assessor's Office 1400 N. 17th Ave. Greeley, CO 60631 (970) 353-3645 RE: Appointment of Agent Vitamin Cottage To Whom It May Concern: This will advise you that Vitamin Cottage (owner of record), holding property under the stated d/b/a, authorizes Assessment Technologies, Ltd., to act as its agent for the 2016 Tax Year and to act on the owner's behalf for the following schedule(s) located within Weld County, Colorado: Address 2619 35 Ave Account # (Parcel #} d/b/a Owner Name P0906166 Natural Grocers U036 This agent is authorized to file applications (or exemptions or special assessments, to investigate appraisals and assessments, to review and receive copies of any prior year tax returns, to appeal property values and taxes, to appear before administrative boards or agencies on behalf of the owner, to have access to all records which would be available to the owner and to appeal decisions of the Board of Equalization to Superior Court. The agent is authorized to delegate its authority to other agents in its sole discretion. The rights, powers, and authorities granted herein shall commence upon the execution of this letter and terminate upon the completion of all issues for the year referenced above unless revoked earlier in writing. Assessment Notices and other Correspondence should be mailed to: Assessment Technologies, Ltd. 40 NE Loop 410, Suite 607 San Antonio, Texas 78216 (210) 222-1221 Email: agent -n It@ atechi/cl,com Vitamin Cottage Natural Food Markets, Inc. dba, Natural Grocers by Vitamin Cottage Home Office V 12612 West Alameda Parkway • Lakewood, CO 90228 •303.966.460) • Fax 303.986.1691 O www,naturaigrocers.com 1ram PAC' 5 . NATURAL GROCERS Haim s SCE Assessment Bills should be mailed to Owner. ,Let Kemper Isel4r, Co -President Vitamin Cottage (owner of recor Holding property under the stated d/b/a Col / AIR Date IN WITNESS WHEREOF: The undersigned has hereunto set his hand affixed his seal on this 2.9 day of ta u -, e 2016. Signed, sealed, and delivered, In the presence of: `Lirnikad Notary Public LORRAINE M MARTINEZ STATE NOTARY OOLORADO. NOTARY SO 0 20004045480 MY C0MM I$$rOrt EXPIRES NOVEMBER 00.2010 '►cm r (.24b Notary Expiration Date Vitamin Cottage Natural Food Markets, Inc. dba, Natural Grocers by Vitamin Cottage Home Office • 12612 West Alameda Parkway • Lakewood, Co 80228 . 303.986.4600 • Fax 303.986.1891 • www.naluralgrocers.com sWalmart to close 269 stores including all 'Express' sites Page 1 of 2 SINIII SUPERMARKET NEWS Walmart to close 269 stores including all 'Express' sites Jon Springer Fri, 2016-01-15 09:24 print j close Wal-Mart Stores on Friday said it would close 269 stores —154 of them in the U.S. including all of its 102 Walmart Express small -format stores. The decision to close the stores follows a review of the retailer's portfolio initiated in October to ensure its stores were aligned with its strategy, Walmart said. In total, the impacted stores represent less than 1% of Walmart's 11,600 stores worldwide. The closures are expected to impact 16,000 employees, including 10,000 in the U.S. "Actively managing our portfolio of assets is essential to maintaining a healthy business," Doug McMillon, president and CEO of Walmart, said in a statement. "Closing stores is never an easy decision, but it is necessary to keep the company strong and positioned for the future. It's important to remember that we'll open well more than 300 stores around the world next year. So we are committed to growing, but we are being disciplined about it." its previously reported in S'N,. Walmart a year ago dialed back plans to expand through the Express format, which was launched in a test phase in 2011, folding the 12,000- to 16,000-square-foot stores into its food -and -drug Neighborhood Market division. The company at one time envisioned the concept to potentially number in the thousands and serve as a defense against fast-growing small discounters like Dollar General. Express stores were largely concentrated in the Carolinas and in Texas. Walmart said it would instead focus on strengthening Supercenters, optimizing Neighborhood Markets, growing its e -commerce business and expanding pickup services. The U.S. closures also include 23 Neighborhood Markets, 12 Supercenters, seven stores in Puerto Rico, six discount centers, and four Sam's Clubs. Walmart said it would publish a list of the intended store closures shortly. More than 95% of the closing stores in the U.S. are within 10 miles on average of another Walmart, "and the hope is that these associates will be placed in nearby locations," Walmart said. "Where that isn't possible, the company will provide 6o days of pay and, if eligible, severance, as well as resume and interview skills training. Whether with Walmart or elsewhere, the company's objective is to help all associates find their next job opportunity." CONNECT WITH SN ON TWITTER Follow (cSN News for updates throughout the day. Domestically, Walmart intends to open 50 to 6o Supercenters and 85 to 95 Neighborhood Markets in fiscal 2017, which begins Feb. 1. In the same period, Sam's Club plans to open between seven and to new locations. Internationally, Walmart intends to open between 200 and 240 stores during the coining year. The closures announced Friday also include 115 stores outside the U.S. — 60 money -losing sites in Brazil and 55 in other Latin American markets. Walmart estimated the closures would result in a financial hit of 20 cents to 22 cents per share, with most of it to be recognized in its current fourth quarter. Approximately 75% of the impact relates to U.S. closings and the remaining portion involves Walmart International, with a large majority of that relating to closures in Brazil. Walmart will report its fiscal 2016 fourth-quarter and full -year results on Feb. 18. Suggested Categories More from Supermarket News 111c!' (11G "Wain -tart to close 269 stores including all 'Express' sites Page 2 of 2 Latest News 4 fp 75 Retailers & Wholesalers • Top 50 Small Clr��i» f inde1penclen • 'Fop 2S Global Rel<<<lci • Disruptors 2015 • SN Photo Galleries • Executive Changes • SN Social • Viewpoints • IdeaaX.elaange SN 4I II II IIIIa 'POI Sign up for the daily newsletter Click her Source U.RL: Ihttp://superma rketnews.com/retail-financial/walmart-close-26Q-stores-incIuding-all-express-sites ID 111 CinA1L Disruptors 2015: Brian Cornell, Target Corp. Page 1 of 2 SPA SUPERMARKET NEWS Disruptors 2015: Brian Cornell, Target Corp. Elliot Zwiebach Tue, 2015-12-01 16:38 print I close The new approach Target Corp. is taking to its food assortment has the lepotential to make the discounter a mare effective player in groceries, according to industry observers. The approach involves offering a broader selection of clean -label natural and organic items, led by Target's Simply Balanced private label line -- part of an effort to make Target's food assortment more relevant and to make the store a food destination. The Minneapolis -based company is also seeking to address its fresh assortment by potentially forming partnerships with wholesalers around the country to create a fresh supply chain, company officials indicated, and it is selling its in- store pharmacy business to CVS so it can sharpen its focus on "reinventing food," while benefiting from increased traffic and sales, and an improved health and wellness profile, Brian Cornell, Target chairman and CEO, noted. Cornell is a former CPO and Safeway executive who joined Target in mid -2014. Discussing plans for the food category at an investors conference in March, Cornell said, "'We believe food represents a significant opportunity for us, [and] what we'll be doing is transitioning from grocery, which is transactional, to food, which is more personal and inspirational. Disruptors 2015: INFLUENCING STORE FORMATS AND COMPETITION Jodie i.)auhei t. nierchandising head, Aliolcl Fresh Formats Jason Hart, CEO, Aldi U.S. Amin Maredia, CEO. Sprouts Farmers Market Gil Phipps, VP of corporate brands Kruger Co. Brendan Proctor, CEO, i.i(11 1. IS Disruptors 2o15: The master list "[Consumers want Target] to deliver a specialized assortment that is more natural, organic and gluten -free, with more localization and personalization, and with cleaner, simpler labels, all merchandised in a more inspirational way — to celebrate the joy of food." Food accounts for approximately 25% of Target's total sales, or nearly $2O billion. 1 11 C /0) 11L Disruptors 2015: Brian Cornell, Target Corp. Page 2 of 2 The company said it hopes its revised food assortment will encourage each shopper to make one more visit to a store every three months, which would translate to $2.5 billion a year in additional sales. But it may take longer than originally anticipated to get the section it wants. Target said in March it expected to roll out most of the changes in its food presentation by next year but subsequently pushed that deadline to 2O17 to give it time to test concepts. "We want to get it right," a company spokesman told the Minneapolis Star Tribune in October. "It's less about how fast we go and more about making sure we implement the right kind of changes." For Scott Mushkin, an analyst with Wolfe Research, New York, getting it right may be key to the company's long-term success. "Maximizing Target's potential goes directly down the food aisle," he said in a written report. "Increased credibility in grocery should drive an increase in frequency of visits, higher sales per square foot and up -sell opportunities in other core categories." According to Neil Stern, senior partner at McMillanDoolittle, Chicago, "Cornell helped Safeway differentiate itself by creating 0 Organics and Eating Right and really driving the private label business there, and that's what he needs to do at Target," Mushkin said he believes Cornell is "the perfect guy" to oversee changes in Target's food sections. "His original career was on the CPG side of the business, and his work at Safeway showed he has an avid interest in retail, as he demonstrated again with merchandising changes when he was in charge of Sam's Clubs. "The Target brand is incredibly strong, and I can't think of a better person to oversee an improvement in the food offering than Brian." CONNECT WITH SN ON TWITTER Follow (c SN News for updates throughout the day. Bill Bishop, chief architect for Brick Meets Click, Chicago, offered a similar assessment. "He's one of those rare retailers who knows how to run stores and understands the power of marketing to drive retail performance. Signs of that were evident when he was in charge of sales and marketing at Safeway," he wrote in a column for S.N. Emphasizing natural and health -focused foods aligns with the interests of Millennials, Bishop noted, "[which] makes marketing sense and allows Target to operate more effectively and generate better performance." Suggested Categories More from Supermarket News • Latest News • Top 75 Retailers & Wholesalers • Top 51) Small chains & Independents • ;I'oi) 25 Global Retailers • Power so • SN Photo Galleries • Exert live Changes • SN Social • Viewpoints • IdeaXchange Sign up for the daily newsletter Source URI,: http://supertnar.l etnews.coniiretail-financial/disruptors-2oi5-bria n-eorttell-tar ;et -c orp t/15OO16 -Single -Tenant Grocery Still Requires Due Diligence - Daily News Article - GlobeSt.com Page 1 of 1 I lobe St ■com" *al Estate Is our domain " .s1 tit 1,4 GET THE NEWS YOUR WAY! 4 News Alerts delivered straight to your inbox! lit6151E1t TODAY You are here: Home > Daily News > Single -Tenant Grocery Still Requires Due Diligence Last Updated: December 2, 2015 02:14pm ET EXCLUSIVE Single -Tenant Grocery Still Requires Due Diligence By Kelsi Margie Borland I Los Angeles NEW event in SoCal! Meet the people leading the sector at RealShare Industrial West. The Westin Long Beach, January 19-20. Room block available Plus: book now for RealShare LOS ANGELES on March 24 and network with 1,000 professionals. C nris Sands The tju77 word for big box clients is grocery stores Dan Hoogesteger Certain subsectors of net lease have become obsolete ano people nave turned more to the daily needs LOS ANGELES —Daily needs -type tenants —namely grocery stores —have become a safety net for single - tenant triple -net investors, but Chris Sands and Dan Hoogesteger of Sands Investment Group say that doing due diligence and checking the back debt is still vital. This is true for national credit tenants as well as local operators. Although grocery is strong, it doesn't eliminate the risks of a single -tenant property. "One of the things that people need to look at for grocery stores specifically is the back debt," Hoogesteger, a principal at Sands Investment Group, tells GlobeSt.com. "When you are looking at a fast food restaurant or a smaller building, it is much easier to replace a new tenant. When you start talking about single -tenant buildings that are 70,000 -plus -square -feet, there are not a lot of operators or users that can back fill that space if for some reason you lost a tenant. Furthermore, if you lost a tenant, you have to wonder if another tenant would have the same challenges. There is a level of due diligence, which is why, based on the price point, you are dealing with a smaller pool of buyers and a more sophisticated pool of buyers." For this reason, more institutional type tenants tend to gravitate toward single -tenant grocery investments. "Not every buyer that is a mom-and-pop buyer off the street has the sophistication level to do that type of due diligence and to understand or feel comfortable with it, or the funds to put into one asset" adds Hoogesteger. The duo recently closed on two single -tenant grocery transactions totaling four stores and nearly $50 million. In all of those sales, they made sure to complete all the due diligence on the tenants' history. The good news, though, is that grocery stores generally report sales, making it easy to review the strength of the tenant and its longevity in a location. "One of the things that is attractive from an investor standpoint in terms of mitigating risk is that these grocery stores typically report sales, so you have the ability to monitor sales," Sands, the founder of Sands Investment Group, tells GlobeSt.com_ "That is another variable in the investment that the buyer can use as a metric to determine the probability of the tenant staying. That is another reason why the grocery store concept has been really desirable, whether it is private or institutional." This has helped to fuel the high demand for grocery tenants, because they can be a more stable option. "The buzzword for big box clients is grocery stores," says Sands. "There are clients that have built their whole business plan around this concept." Hoogesteger adds that demand for this product has been growing for the last few years. "There has been a consistent demand, and I think that you can say over the last few years that the demand has been increasing," he says. "Certain subsectors of net lease have become obsolete and people have turned more to the daily needs." Registration now open! Meet the people leading the sector at RealShare Net Lease. The Convene, Midtown East, in New York, April 12-13. Room block available. About Our Columnist Kelsi Maree Borland is a freelance writer and editor living In Los Angeles. Her work has appeared In publications such as Travel + Leisure, Angeleno and Riviera Orange County. Bio II Email About ALM I Customer Support Copyright © 2016 ALM Media Properties, LLC. All rights reserved. 111 Snf11 A Safeway anticipates more small -format stores Page 1 of 1 d SN SUPERMARKET MEWS Safeway anticipates more small -format stores Thu, 2015-12-31 14:28 print I close. Safeway is continuing to open small -format stores, including a former Fresh & Easy Neighborhood Market in San Jose, Calif., it has acquired. The company said it will begin remodeling the 23,20o -square -foot vacant location inthe spring, with a grand opening slated for next summer. A spokeswoman told SN Safeway is continuing to invest in new -store development "in areas we see an opportunity — anywhere from 20,000 square feet to 75,000 square feet." Related Silk' t (IN says skimming. involved 'isolate(' incidents' C&S to close 2 Salc'wav warehouses. The San Jose store will be a traditional full -service Safeway, she noted, including full -service deli and floral departments, fresh -cut fruit, thousands of local fresh and packaged goods and a wide range of organic produce. Safeway is a division of Boise, Idaho -based Albertsons. The San Jose location is one of four new stores Safeway said it will open in Northern California in 2016. The other three will be in Pacifica, Walnut Creek and Oakland. Suggested Categories More from Supermarket News • Latest News • To 7s Retailers & Wholesalers • Top so Small Chains & independents • Top 25 Global Retailers • Power so • SN Photo Galleries • Executive Changes • SN Social • Viewpoints • IdeaXchange Sign up for the daily newsletter Source URL: lit( l; /supermarketnewts.com/small-format-supermarket/safcwav-anticspates-rriore--smali- forumt-st_t)rc's 111 511(116 /')t11 K 'Judge approves sale of 47 Haggen stores; 33 to Albertsons Page 1 of 2 SN SUPERMARKET MEWS Judge approves sale of 47 Haggen stores; 33 to Albertsons Jon Springer Wed, 2015-11-25 11:33 print I close A federal bankruptcy court on Tuesday approved the sale of 33 Haggen stores to Albertsons LLC, returning the units to the entity that sold them just under a year ago, The court on Tuesday also approved the sale of four Haggen locations to Sprouts Farmers Market; four stores to Smart & Final; three stores to Tawa Inc.; and single stores to Yoke's Market, Stater Bros. and Good Food Holdings. The approved sales followed an auction earlier this month that netted 55 proposed sales that would raise more than $47 million. Related itaw.ten puts 'core' stores on auction block Albertsons bids for 36 stores as l laggen auctions kick oft The stores were offered by Haggen Inc., which acquired the units less than a year ago when they spun off as part of mandated divestitures in the All)( h so n -Sa le wa v merger. A spokeswoman for the FTC told the Wall Street Journal that the agency did not object to selling the stores back to .Albertsons in cases where there wasn't a competing bidder. Haggen operated the stores under its banner until filing for bankruptcy in September. The court approved separate purchase agreements for the following stores: BUYER, STATE, STORE, METRO AREA • Albertson's LLC, AZ, Lake Havasu — McCulloch Blvd, Lake Havasu • Albertson's LLC, AZ, Tucson — East Broadway Blvd, Tucson • Albertson's LLC, AZ, Tucson — N. Silverbell Road, Tucson • Smart & Final Stores LLC , CA, Laguna Niguel — Crown Valley Pkw, Laguna Niguel • Tustin Safe LLC, CA, Tustin — i7th St, Tustin • Albertson's LLC, CA, Tujunga — Foothill Blvd, Tujunga • Smart & Final LLC, CA, Diamond Bar — S. Diamond Bar Blvd, Diamond Bar • Albertson's LLC, CA, Saugus — Bouquet Canyon Rd, Saugus • Smart & Final LLC, CA, Burbank — W. Verdugo Ave, Burbank • Sprouts Farmers Market, CA, Los Angeles — Venice Blvd, Los Angeles • Regency Centers L.P., CA, Woodland Hills — Mulholland Dr, Woodland Hills • Albertson's LLC, CA, Bakersfield — Panama Lane, Bakersfield • Albertson's LLC, CA, Bakersfield -- E. Stockdale Hwy Bakersfield • Albertson's LLC, CA, Rancho Cucamonga — Foothill Blvd, Rancho Cucamonga • Donahue Schriber Realty Grp, CA, Camarillo — Las Posas, Camarillo • Sprouts Farmers Market, CA, Simi Valley — Cochran, Simi Valley Judge approves sale of 47 Haggen stores; 33 to AIbertsons Page 2 of 2 • Stater Bros. Markets, CA, Simi Valley — E. Los Angeles Ave, Simi. Valley • Albertson's LLC, CA, Lompoc -- N. `H' St, Lompoc • Albertson's LLC, CA, Goleta — S. Turnpike Rd, Goleta • Sprouts Farmers Market, CA, Goleta — N. Fairview Ave, Goleta • Tawa, Inc., CA, Chula Vista — Telegraph Canyon Rd, Chula Vista • Smart & Final Stores LW, CA, San Diego — University Ave, San Diego • Albertson's LLC, CA, El Cajon— Broadway St, El Cajon • Albertson's LLC, CA, La Mesa — Lake Murray Blvd, La Mesa • Albertson's LLC, CA, Rancho Bernardo - Rancho Bernardo Rd, Rancho Bernardo • Albertson's LLC, CA, San Diego — Highland Village Pl, San Diego • Tawa, Inc., CA, San Diego — Balboa Ave, San Diego • Good Food Holdings, CA, San Diego — W. Washington St, San Diego • Albertson's LLC, NV, Henderson — Bicentennial Pkwy, Henderson • Albertson's LLC, NV, Henderson — College Dr, Henderson • Albertson's LLC, NV, Henderson — N. Boulder Hwy, Henderson • Sprouts Farmer's Market, NV, Las Vegas — W. Lake Mead Blvd, Las Vegas • Tawa, Inc., OR, Beaverton — S.W. Hall, Beaverton • Albertson's LLC, OR, Baker City - Campbell St, Baker City • Albertson's LLC, OR, Springfield - Main St, Springfield • Albertson's LLC, OR, Ashland - Siskiyou Blvd, Ashland • Albertson's LLC, WA, Burien - First Ave. S, Burien • Albertson's LLC, WA, Renton SE Petrovitsky Rd, Renton • Albertson's LLC, WA, Everett - Evergreen Wy, Everett • Albertson's LLC, WA, Renton - NE 4th Ave., Renton • Albertson's LLC, WA, Shoreline - Aurora Ave. N, Shoreline • Albertson's LLC, WA, Port Orchard - Bethel Rd. S.E., Port Orchard • Yoke's Foods, Inc., WA, Liberty Lake - N. Liberty Lake Rd, Liberty Lake • Albertson's LLC, WA, Spanaway/Tacoma - Pacific Ave. 5, Spanaway/Tacoma • Albertson's LLC, WA, Gig Harbor - Point Fosdick Dr. NW, Gig Harbor • Albertson's LLC, WA, Puyallup - Canyon Rd. East, Puyallup • Albertson's LLC, WA, Milton - Milton Way, Milton Suggested Categories More from Supermarket News • Latest News • Top_75 Retailers & Wholesalers • Top so Sunill chains & Independents • Top. 25 Global Retailers • Power o • SN Photo Galleries • Ex ec u t i ve Changes • SN Social • Viewpoints • ideaXchange SIMI I,.,.•'%% 911.! Sign up for the daily newsletter Source URL: I'rltp://sitpetimicl:cnt 5rtis.c•onhisatewa -all ert: ono-merger/jucage-<<t}p:•oves-sale- 4 7 -halt gcn-stores-m- albertsons 1t1Chill K How Much is a Facelift Worth? - Capital Management - Retail Leader Page 1 of 4 Subscribe to our weekly Executive Perspectives °Newsletter Customer Experience Starts with E -commerce., BUT THAT IS JUST THE BEGINNING Home Ili • i • a I r:. oi."l.:'.:rtJ Re:hi' Leader REGISTER NOW' SUBSCRIBE I ABOUT US I ADVERTISE I SITE MAP Retail Leader Profiles I Special Reports Government I Trends I International Dusiness I Tech & Logistics I Human Capital I Consumer Insights I Research t IIt104V II°`I( rr •i f Is A F•\r \\Intel it? A challenging economy has more retailers focusing on store remodels, but do they pay off? By Ed Avis own i ej Recommend 2 .'i The struggling economy might be slowing some retailers' plans for geographic expansion, but it hasn't quashed their efforts to keep up with the Joneses. If anything, store remodels are more popular than ever as retailers strive to get the most bang for their capital improvement buck and outshine competitors. Renovations come in all shapes and sizes, which is causing some retailers to re-evaluate how extensive their remodeling plans should be. At Publix Supermarkets, which renovated 124 stores last year and expects to redo at least as many this year some relatively minor changes have received the most shopper attention, says Maria Brous, director of media and community relations for Publix. which is based in Lakeland, Ha. 'It's the little improvements that sometimes customers notice the most, Brous says. ''For example; they appreciate the LED lighting in coolers that turns on only when customers enter the aisle. That's a sustainable [element], and customers are starting to pick up on those things. With margins under pressure, many retailers are opting to renovate existing locations to rekindle interest without the full cost of new construction And they all want to know, how can we maximize return? "A remodel usually brings in a 5 percent to 10 percent increase in sales, says David J. Livingston, a supermarket consultant and principal of DJL Consultants in Waukesha, Wis. "But I've seen stores remodel and get no increase in sales. Then perhaps the issue wasn't with the facility. but raft per with tlw' operalions or the concept, So remodels don't always work. Before retailers dive into a remodel, consider the following questions: Why remodel? Which r lcn nl�: ell 1 i 'ip rlcl ;1v' liki= ly In rlay off ,twi 'iIiinit nl:finl is; mon't likr'ly 1••• in nth a r� firru ir. , I IC:lrJfIi? \1\41::i;no flit-'tc;:: inioli(:iiir111:; (:l rr-1not it•liIiJ% Stores remodel for countless reasons. but most boil down to competition. When a competitor has a fresher concept, introduces an expanded deli or enters a market for the first time, existing stores often decide a renovation is a competitive necessity. If the existing store is aging, the retailer's desire to renovate in the face of new competition is even stronger Ninety-nine times out of 100 the impetus to remodel is going to be competition, says Andrew Swedenborg, executive vice president for business development at King Retail Solutions. a consultancy in Eugene, Ore. that guided Robert Fresh Markets on its rebranding and remodeling. 'A good remodel is great marketing for a store in and of itself It causes excitement in a community- gets a grocery store noticed and elevates the store above its local competition Retail Leader Videos Retatlets Can't Wtrtl on Price roi ever• is Per soiariltzattort the Answer? WAt -1.Cn1.c1EMANl) Featured W gpap f c.14.non ;usan ,Context I In Print I Industry News '1 ,1 P lAr a •RSR Maintain the Cold Chain: Six Supply Chain Best Practices for Temperature Sensitive Freight Best Practices in Virtual Research rye ut GROWING JUST RIGHT Bristol Farms thrives it i a crowded Southern California specialty market through judicious choices -from new products to store locations, 6/10/7016 Page 2 of 4 :How Much is a Facelift Worth? - Capital Management - Retail Leader in the eyes of the customers. While competitive pressure often drives a renovation, a corporate directive also can spur it We'green Co.'s Duane Reader. a New York -based pharmacy chain that also sells groceries, is remodeling alt of its 254 stores as part of the company's rebranding effort. "We are repositioning our entire brand identity in a comprehensive manner across the board. says Scott McCulloch senior director of merchandising. ' I he entire chain has taken cn a new identity and every store will be remodeled by early 2014 Remodeling a location usually costs less than building one from the ground up, yet in some circumstances a new store might be the better long-term investment, experts say. 'If a store is doing excessive sales per square foot, and they're getting a bottleneck at the front end. they may need to move to a larger location or expand, Livingston says. On average, grocery retailers generate $10 in weekly sales per square foot of space, Livingston says. If a store is generating $5 to $6 per square foot per week. the retailer needs to renovate or close the location, If the store is generating $20 per square foot per week, the retailer should consider expanding or building a larger store, he says. Competition wasn't the main factor spurring Marc Robert to renovate Robert Fresh Markets in New Orleans in 2005: Hurricane Katrina forced his hand by destroying all five of his locations, The gut renovations have generated positive returns for stores in neighborhoods that have recovered from the storm, Robert says. The last three projects Robert Fresh Markets launched —two renovations and one new store —cost $6 million each. Robert says he is comfortable with the return on investments for all three, though he declines to be specific. How is ROI Measured? When weighing a renovation, determine how the return on investment will be measured. Accurate measurements allow the store to focus subsequent remodels on those areas that pay off the most. A typical ROI calculation is a ratio of increased sales to the amount of investment. For example_ if a renovation cost $1 million, and the store earned $200.000 more in the year following the renovation, the ROI is 20 percent. That's a highly simplistic view of ROI, however, and ignores the impact on sales of variables other than the renovation, such as competition, weather and population patterns. A more accurate measurement compares a remodeled store's performance to that of similar "control' stores that were not remodeled, says Anthony Bruce, chief executive officer at Applied Predictive Technologies (APT), a Washington D.C.-based firm that helps businesses measure the impact of capital investments, such as store remodels, with software called Test & Learn. `Consider a remodel program where the retailer repaints some stores, expands some stores and adds new checkout lanes to others, Bruce says. "Test & Learn can distill the winning combination of remodel elements and recommend actions for every other store in the chain. Not every grocery retailer uses such a sophisticated system, of course, but more are considering the impact of not renovating when making their decisions. "We often advise clients to consider what they stand to lose if they don't remodel rather than [focus] on a specific desired ROI, Swedenborg says. Which Elements Pay Off? Researching customer needs in advance of a remodel can pay off. "We did a lot of research, Robert says. "We conducted focus groups to learn what was important to our customers. For example, the company's research suggested customers like to socialize in stores. 'There's a Mayberry aspect of the community. People want to meet their friends and chat at the store," r\srs ,1 .. � ,"1 • s r Jr i ,lri il1:11 iy 111 , I: s1:' .: i(. ., •.• I. i sit-dovui :r, ;$ till I:i;•1.1r.:ir, lc; €:nt pupal c Sri f;)Mr r.. r;lr,o r;,rlrir ^l sr i!:lii, 1:i i'w: l wet rind t;llir r value-addeu items ms pr epar ud by ,r 1 -Stole cl leis ellur U ie r esearcl i indicated many customers have young families and want more convenient prepared foods. Many stores have boosted profits by adding prepared food departments. The deli area can be a draw for customers if it is stocked well with lunch trays. breakfast items and other to -go items, says Dan Phillips, a project manager for Phillips Enterprises Inc. a retail renovation consultancy in Bellevue, Wash. What Renovations Don't Pay Off? Retail Leader Pr, [. p VI : 0P4 RECOSIEli NOVJla IN OMNICHANNEL, KEEP CUS'T'OMER FOREMOST 'V\TALMAR'I' OFFERS MONTH OF FREE SHIPPING KROGER SUES VISA OVER CARD SIGNATURES INSTACART NOW IN MARIN COUNTY, CALIF. JE-CIGARETTE ADVOCATES SUE FDA WHOLE FOODS TO PARTNER WITH NIELSEN BREXIT TO SLAM BRITISH FOOD INDUSTRY ONLINE ORGANIC GROCER RAISES $111 MILLION W1NCO BUILDS WAREHOUSE NEAR DALLAS KROGER TO BUILD CHEF SCHOOL NEAR HQ L r it 16. !1i rc to learn about the Stagnito+Edgell difference. Phillips advises against adding store features that inefficiently tie up staff. 'For example. one large store in our area installed a roasted nut service pod in the middle of the store. Now that 6/10/7.016 -How Much is a Facelift Worth? - Capital Management - Retail Leader pod needs to be manned continuously. Even if it's slow, that person can't leave to stock shelves or something. The floral department might make the store smell good, but it often doesn't generate much cash relative to the space it occupies. 'It's never a moneymaker Phillips says Renovations will not fix underlying problems Livingston advises. For example. a chain invested in new decor and other cosmetic improvements. but it didn't change its prices or improve low employee morale. "There's a saying, 'You can't put lipstick on a pig. Well remodel dollars are wasted if you don't take care of the underlying problems, Livingston says. I low Long Does it Last? Competitors can determine a renovation's lifespan. In areas with little competition. a renovation will remain fresh for much longer than in areas where competitors are frequently updating their looks. Metropolitan Market in downtown Seattle tends to remodel every three years, Phillips says_ 'Stores out from the city will do a minor remodel every five years and a full remodel every 10 years, he says. The quality of the renovation helps determine its lifespan, too- "A good design can last 10 years or more; a trendy design will last 10 minutes, Swedenborg quips. "On average, though. a store's design remains fresh for about five to seven years following a remodel Tax Implications Retailers considering renovations should pay close attention to new Internal Revenue Service (IRS) regulations affecting the way renovation costs are treated, says Rob Levin, managing director in the Corporate Strategic Federal Tax Services Group of Grant Thornton LLP in Atlanta. "The new rules help taxpayers determine if their renovation costs should be deducted as an expense or capitali7ed," Levin says "The old regulations were ambiguous, and the taxpayer could make a subjective judgment about that." The new regulations stipulate that taxpayers consider their property in parts rather than as a whole. For example, under the old regulations, if a grocery store replaced one of three HVAC systems, it could probably deduct that expense in a single year with the understanding that the new HVAC did not materially affect the life of the building as a whole. Under the new regulations, the retailer would have to capitalize the purchase instead because the new HVAC would materially affect the life of the HVAC system. If a renovation expense is deemed deductible, the retailer can take the full tax benefit of that work in the year it occurred. If it needs to be capitalized, the tax benefit will be spread out over the estimated life of the improvement Another change allows companies to immediately deduct the remaining unamortized value of a component being replaced. For example, if a retailer is replacing a roof and the existing roof is not fully amortized, the remaining amortization can be taken as soon as the new roof is installed. While the new tax regulations might change the return on investment in a given year it is just one of many factors retailers should weigh as they consider renovating. The bottom line for most retailers is this: If enough customers spend enough new money in the renovated store, the renovation will be deemed successful. Ed Avis is a freelance writer and editor in Chicago. He has written for Crain's Chicago Business, the Chicago Tribune, Specialty Coffee Retailer Tea Magazine, and many other consumer and trade publications Page 3 of 4 Stagnito Business Information + Edgell Communications 570 Lake Cook Rd. Ste. 310 Deerfield, III. 60015 Phone: 224-632-8200 Fax 224-632-8266 Help, Info & Contacts Publishing websites r1ppilrto I.,Ur1WUri1(?r t;(,n(Is Ie(;nnul(,c1i nvornO11Cc' Sfnr1' Nows I I_hr(octrny of (:r,nveniunce SItn i I ic t"our rout I gasp]]Hlity 1 ecluioloyv J13(k.elirri4 ;uuit)luouk I'r()t1res;sivu Grur( i Retail Leader Online sitC Mal) I loins bout/K c and;1 Us /\(Ivor list) olncs & f ii;-ilysrs I' t!1ai' .oado; Mathes tas Special kepoi 1ii, Arellives cnni' n14 Fresh & Easy sets auction for warehouse equipment Page 1 of 1 S11%11 SUPERMARKET NEWS Fresh & Easy sets auction for warehouse equipment rue, 2015-12-01 12:03 print I close Fresh & Easy said Monday it plans to hold an auction Saturday to sell the rolling stock of its refrigerated food distribution facility in Riverside, Calif. The equipment includes 307 new and used refrigerated trailers, more than 40 forklifts and more than 200 electric pallet jacks, as well as machinery, batteries and other items, according to the company. Related Fresh & [atsk� tiles for Chapter 11 ]'refill & Easy names restructuring executive The items will be available for viewing on Friday, with the auction scheduled the following day beginning at 10 a.m. Interested parties can call (818) 508-7034 or go to ‘v►v .I,ikli uul.eom for additional information. The auction was ordered by the U.S. Bankruptcy Court as part of Fresh & Easy's Oct. 3o Chapter 11 filing. Fresh & Easy operates 97 stores in Southern California, Arizona and Las Vegas. It was acquired by Yucaipa Cos., Los Angeles, in 2013 from United Kingdom -based Tesco, which built the Riverside warehouse. Suggested Categories More from Supermarket News CONNECT WITH SN ON TWITTER Follow (coN News for updates throughout the day. • latest News • 'Fop 7:s Retailers & Wholesalers • Top so Small Chains & Independents • Top 2s Global Hi t i+ rs • Power so • SN Photo Galleries • Exc'cu tive changes • SN Social • View taoints • L(.icaXehangc. SN 1n11..11111 list Sign up for the daily newsletter Glick Source L: llttp://srlpermal'lct'tiltA1's..1't)Illf ret:lil-Ilnattf'islljiresll-trast-tit'ts-altietioo-w4l1'E:`hf use-eC,1111p111ent fit 1/15/7.016 '2016 Top 75: Consolidation transforms food retailing Page 1 of 4 SN SUPERMARKET NEWS 2016 Top 75: Consolidation transforms food retailing Elliot Zwiebach Mon, 2016-01-04 06:00 This year's list reflects M&A impact as alternate formats make strong showing print I close While supermarkets continue to consolidate, sales of food and consumables at alternate formats continue to take a bigger slice of the competitive pie, according to SNis annual list of the Top l} 75 retailers and wholesalers in North America. Four of the top 10 companies are not traditional supermarket operators — two are discounters Walmart and Target and two are drugstores, whose sales of food and household items surpass the volumes of dozens of conventional operators. 2016 Drugstores and dollar stores are "stealth competitors" that have been taking volume from supermarkets for years, Neil Stern, senior partner at McMillanDoolittle, Chicago, said, "and while it's a big amount when you look at it in total, most supermarkets see it on an individual -store basis and have been slow to react. But that's going to have to change. "Those formats are taking business based on convenience, and or a,. supermarkets are going to have to find ways to offer goods rutot` ._ d more conveniently — possibly by doing what they do in the RETAILERS & WHOLESALERS U.K., where they set aside areas of 1,000 square feet or so at the front of the stores and sell milk and eggs and other basics." 2O16 Top 75: Clickable List The Top 7S list, from Wahnart to Northgate Gonzalez Market Also, see slidesltows and more information on the Top 75 landing page According to Chuck Cerankosky, an analyst with Northcoast Research, Cleveland, sales at alternative formats are likely to continue to grow, even as the economy improves. "While operators like Kroger and Costco are seeing people trading up, it's not unusual to think those retailers and others might lose a handful of items to an alternate format. Even with the economy improving, not every purchase will be bundled together with a trip to the supermarket." CVS Health, Woonsocket, R.I., landed at No. 5 on the list, with estimated consumable sales of more than $44 billion at approximately 7,911 drugstores, while Walgreen Co., Deerfield, Ill., was No. to, with 8,173 stores accounting for estimates exceeding $28 billion in consumables. With Walgreens in the process of acquiring Camp Hill, Pa. -based RiteAid Cori ►,, it could push that figure close to $36.5 billion. Dollar stores also continue to be effective competitors, with I)(Alai. General, Goodlettsville, Tenn., at No. 19 (compared with No. 17 last year) with $15 billion in consumable sales, and Dollar Tree, Chesapeake, Va., at just under $11 billion (moving up to No. 24 from No. 36 last year following its acquisition of Family Dollar). Online operations 1/15/2016 •2016 Top 75: Consolidation transforms food retailing Page 2 of 4 Online competition from Amazon.com, Seattle, is also on the rise, with sales of consumables moving the company up to No. 53 on this year's list from No. 62 a year ago. Stern said he believes Amazon will remain "a behemoth" that supermarkets will have to continue to deal with. "Because Amazon is so well capitalized, it can continue to spend and grow while losing money," he noted. Though supermarkets will continue to expand their online businesses, that growth is likely to parallel Amazon's growth rather than replace it, Stern said. "It's unlikely anyone will be able to slow down Amazon, other than possibly Amazon itself," he noted. According to Cerankosky, what conventional retailers need to do "is get people into their stores for food and let them buy other stuff online. Even as retailers become increasingly involved in the digital universe to deliver food as part of an oinnichannel approach, there's nothing like buying fresh food at the store. That's the epitome of quality food retailing." Supriya Chaudhury, CMG for Clavis Insight, Boston — which helps businesses understand online opportunities — said Amazon is likely to continue to gain additional customers by driving innovations in delivery systems. "Supermarkets have not yet developed as many innovations to capture consumers' interest in convenience, and Amazon will probably hold the lead it has for some time," she said. "Walmart is making a huge investment in building an online operation with enough categories to have an impact and capture consumers who are active with Amazon, but most pure supermarket operators are less developed in the space," Chaudhury noted. "Instacart certainly helps bridge the gap on delivery logistics, but there is still a lot the large supermarkets need to do to get to the level of some of the other players." Jim Hertel, senior partner at Willard Bishop, Chicago, said he believes brick -and -mortar retailers have an advantage over Amazon for at least three to five years "because of two huge advantages: They are closer to customers — with a supermarket within two -and -a -half miles of 8O% of the population — and they have built long-term relationships with consumers. "What Amazon is investing in is ways to get closer to customers, and if it can leverage that, then it will be an even bigger factor for supermarkets in five to 10 years. "The key area is fresh. Amazon can deliver packaged foods, but it hasn't solved the problem of delivering on its fresh promise, and that's the window supermarkets have to take advantage of." Andrew Wolf, managing director for BB&T Capital Markets, Boston, offered a similar opinion. "The world of grocery shopping is increasingly built around perishables, and that's not a category a business can make money on delivering to people's doors in the suburbs. A click -and -collect system works much better for perishables, and I don't think the threat of Amazon will grow — not in the perishables area — because there's no compelling business model to get fresh food to people and still make money." Consolidation matters Even as alternate formats chip away at supermarket volumes, the industry continues to change with ongoing consolidation. 1/15/2016 1016 Top 75: Consolidation transforms food retailing Page 3 of 4 While some things remain pretty much the same — with Wahiiart., Kroger Co. and co tco Wcontinuing to top the Top 75 list, as they have for over a decade — consolidation has removed four significant chains from the list, opening the way for four newcomers to join. Gone are Safeway, which was acquired by Albertsons early in 2015; Family Dollar, which was acquired by Dollar Tree at mid -year; A&P, which liquidated its assets late in the year; and Roundy's, which agreed to be acquired by Kroger Co. in a transaction scheduled to be completed early in 2016. 4. - r In their place are four geographically diverse companies, who appear in the last four spots on this year's list: Ea rcwn Stores,, Boone, Iowa; inscrra Supermarkets, Mahway, N.J.; IAA%e's Market, Littlefield, Texas, and Northgatc Gonzalez arket, Anaheim Calif., with volumes ranging from $1 billion to $1.3 billion. While the Roundy's deal will simply cement Kroger's position as the leading conventional player on the list and the A&P volume was dispersed among many buyers, the Safeway merger moved Albertsons up the list to No. 4 from No. 9 a year ago, while the Family Dollar acquisition pushed Dollar Tree to No. 24 from No. 36. Finishing out the top 10, CVS and target were Nos. 5 and 6, with Canada -based I .oblaw Cos, No. 7; 1%11 d x Su ner Markeis, Lakeland, Ha., No. 8; C&S Wholesale Grocers, Keene, N.H., No. 9; and Walgreens, No. 10. Among changes on the horizon for next year's Top 75 list is the pending merger of the European -based parent companies of 1)cihaize America, Salisbury, N.C., and Alwld USA, Carlisle, Pa. — a combination with the potential to create a company whose volume will exceed $41 billion, which would be enough to surpass Publix on this year's list. Observers told SN overall industry consolidation is likely to be a constant factor going forward. "Some consolidation will be strategic, like the Delhaize-Ahold merger, which came about when those companies realized they needed to grow sales on the East Coast after the Kroger -Harris Teeter merger," Cerankosky said. "We're also likely to see more smaller, in -market consolidations that enable mid -level operators to gain scale. Companies like Kroger and Costco use scale to deliver value to customers, and more companies will realize that's something they can't do by remaining small." Stern said he expects a slowdown in larger deals — like Albertsons-Safeway and Ahold-Delhaize — "because those just don't happen that often. But we're likely to see more smaller deals of the Kroger-Roundy's size." Hertel said he anticipates more consolidation "because companies want to grow. But if their top lines aren't growing, many believe they can achieve more bottom -line growth by consolidating to achieve greater economies of scale," he explained. He also said he anticipates more deals involving midsized companies. "There is a drive for grocery chains to operate 2,000 stores and up, and it's easier to get there through acquisition than building new stores," he said. CONNECT WITH SN ON TWITTER Follow Aa SN News for updates throughout the day. Wolf said consolidation will be driven by the desire of retailers to offer value, which can encompass quality as well as pricing. "Value is what exacerbates the gap between good and bad operators," he explained. ADDENDUM: IGA accounts for worldwide sales of approximately $37 billion from 5,451 stores. Of the total, 1,121 stores in the U.S. account for $7.8 billion (21% of the total) and 4,330 stores in 32 other countries and territories, including Canada, account for $29.2 billion (79% of the total). 1/15/2016 2016 Top 75: Consolidation transforms food retailing Page 4 of 4 Suggested Categories More from Supermarket News • Latest NI \vs • Top 75 Refund's & Wholesalers • Top so Small Chains & Independents • Top 2s Global Retailers • I}isru )tut•s 201 • SN Photo Galleries • Executive Changes • SN Social • Viewpoints • IdcaXchange Sign up for the daily newsletter ""'pick hear Source LTRI1: htt :/ su es•nxarlcetne;vs.eoIu/retail-1'iir:lucial/2016-tn1-73-consolkl&ltion-lranstot'ilia-iopd-retailing ID 1/15/2016 •C&S acquiring produce distributor FreshKo Page 1 of 2 SN SUPERMARKET NEWS C&S acquiring produce distributor FreshKo Jon Springer Wed, 2015-12-16 14:29 print I close C&S Wholesale Grocers said Wednesday that it has acquired FreshK0 Produce Services, a Fresno, Calif. -based produce distributor. The addition of FreshKO and its 142 employees is directly aligned with C&S's commitment to expand its fresh and organic produce business and its continued emphasis on servicing independent retailers, Keene, N.H.-based C&S said. Terms of the deal were not disclosed. The acquisition comes amid increased interest in fresh and specialty distributors as a means of better servicing and merchandising stores. Earlier this week specialty distributor DPI was acquired by private equity firm Arbor Investments. Officials of United Natural Foods earlier this month said they were also looking at potential acquisitions of fresh and specialty distributors as it looks to improve offerings for its customers. Related ('&S to expand facilities in Pennsvlvania C&S, dinged by A&P collapse, in:mullet's i; vcill;s "FreshKO has built a highly successful service model that supports retailers in providing their customers with the best produce the region has to offer at competitive prices," Rick Cohen, chairman and CEO of C&S, said in a statement. "The FreshKO team's deep customer relationships and level of expertise in this market make this partnership ideal." Founded in 2002 by Randal Shepherd and Manny Robles, who have each spent more than 35 years in the produce industry, FreshKO provides high -quality produce and comprehensive customer support to approximately 650 customers throughout Central and Northern California. The business will continue to operate under the FreshKO brand as a wholly owned subsidiary of C&S. Suggested Categories More from Supermarket News CONNECT WITH SN ON TWITTER Follow c ESN News for updates throughout the day. • Hit's( Nrwc • "Cop 75 Retailers c4 Wholesalers • Top so Small Chains & Independents • Top 25 Global Retailers • Power so • SN Photo Galleries • 1;xecutl\ e Changes • SN Social • Viewpoints • IdeaXchange 1 /1 5/2016 ,C&S acquiring produce distributor FreshKo Page 2 of 2 Sign up for the daily newsletter Click Source URL: hltp://supermarketnews.comi •oduce iloralb+-��c�gItiPing- prodticue-distributor-freshko 1/15/2016 LO 0) T Otl r., co r-NC1 U; Ak+ G` 1: r. I• r c - aa I'• C . } • ;... • MO S ZZ c., DO .� tn. O 05 I l.i c-1 Ow 0 et III Lii2 it cic) r S S a I,- ci S to 0 r r -D rt- Ii rr RETURN RECEIPT REQUESTED • Imo • en tV w a MEM* Ca .. ' a- 01 krn �W tr--V C) ° U7 O 6 rt.-010 3 • in a� ; (4 - a0 July 26, 2016 Petitioner: VITAMIN COTTAGE 12612 W ALAMEDA PKWY LAKEWOOD, CO 80228-2824 CLERK TO THE BOARD PHONE (970) 400-4226 FAX (970) 336-7233 WEBSITE: www.co.weld.co.us 1150 O STREET P.O. BOX 758 GREELEY CO 80632 Agent (if applicable): ASSESSMENT TECHNOLOGIES LTD 40 NE LOOP 410 STE 607 SAN ANTONIO, TX 78216-5883 RE: THE BOARD OF EQUALIZATION 2016, WELD COUNTY, COLORADO NOTIFICATION OF HEARING SCHEDULED Docket #: 2016-2401, AS0094 Appeal #: 2008211237 Hearing Date: 8/4/2016 10:00 AM Account(s) Appealed: P0906186 Dear Petitioner(s): The Weld County Board of Equalization has set a date of AUGUST 4, 2016, at or about the hour of 10:00 AM, to hold a hearing on your valuation for assessment. This hearing will be held at the Weld County Administration Building, Assembly Room, 1150 O Street, Greeley, Colorado. You have a right to attend this hearing and present evidence in support of your petition. The Weld County Assessor or his designee will be present. The Board will make its decision on the basis of the record made at the aforementioned hearing, as well as your petition, so it would be in your interest to have a representative present. If you plan to be represented by an agent or an attorney at your hearing, prior to the hearing you shall provide, in writing to the Clerk to the Board's Office, an authorization for the agent or attorney to represent you. If you do not choose to attend this hearing, a decision will still be made by the Board by the close of business on August 5, 2016, and mailed to you within five (5) business days. Because of the volume of cases before the Board of Equalization, most cases shall be limited to 10 minutes. Also due to volume, cases cannot be rescheduled. It is imperative that you provide evidence to support your position. This may include evidence that similar homes in your area are valued less than yours or you are being assessed on improvements you do not have. Please note: The fact that your valuation has increased cannot be your sole basis of appeal. Without documented evidence as indicated above, the Board will have no choice but to deny your appeal. If you wish to obtain the data supporting the Assessor's valuation of your property, please submit a written request directly to the Assessor's Office by fax (970) 304-6433, or if you have questions, call (970) 353-3845. Upon receipt of your written request, the Assessor will notify you of the estimated cost of providing such information. Payment must be made prior to the Assessor providing such information, at which time the Assessor will make the data available within three (3) working days, subject to any confidentiality requirements. Please advise me if you decide not to keep your appointment as scheduled. If you need any additional information, please call me at your convenience. Very truly yours, BOARD OF EQUALIZATION ‘t:Z;(1Af Esther E. Gesick Clerk to the Board Weld County Board of County Commissioners cc: Christopher Woodruff, Assessor Hello