Fallout of Scott’s buyout worries shoppers

Nancy Lee shops at Scott’s and, specifically, not Kroger.

“I shop at Scott’s because they always have what I need,” Lee said as she loaded groceries into her car at the North Clinton Street store. She avoids the Kroger on East State Boulevard just a mile south. “I don’t like their service.”

Later this year, Scott’s will become part of the Kroger Co. chain, the nation’s largest grocer. Kroger officials say they have no plans to close any Scott’s stores, but the stores will begin seeing Kroger-brand products. Scott’s has a local flavor dating to 1954 when the first store opened, but has been corporate-owned since 1991, when it became a part of Supervalu Inc., the nation’s third-largest grocer.

But grocery shoppers are loyal to brands, location, service, layout, prices and – in Scott’s case – that hometown history. Lee thinks that could be lost in a Kroger buyout of Scott’s, which is expected to be finalized later this year.

“Eventually, they are going to treat this store the way they do the Kroger,” she said.

Norman Myers of Fort Wayne stops by Scott’s occasionally, but tends to shop at Kroger because it’s closer to his home. Even as a Kroger supporter, he is skeptical about the buyout.

“That concerns me because Fort Wayne is losing competition,” Myers said. “I think it is a good move on Kroger’s part because they have eliminated their major competition.”

That’s not the case, said John Elliot, public affairs manager for Kroger’s central market area, which is based in Indianapolis. Competition is fierce in Fort Wayne with Wal-Mart, Meijer, The Fresh Market, ALDI and other assorted options. Kroger and Scott’s joining forces will benefit shoppers, he said.

“By drawing the best practices and strengths of both companies we feel we will be in a better position to compete,” Elliott said. “We are drawing from some exceptional talent from Scott’s. They have 53 years of experience in this market.”

Scott’s and Kroger advertise heavily in local media. He said company officials have yet to determine an advertising or marketing strategy going forward.

Jan Reidy of Fort Wayne shops at Scott’s about twice each week because she said the prices and service are excellent. She is not concerned about any drop-off in service but thinks Kroger has higher prices.

“It will be interesting to see what happens,” she said.

Regina Towles said she could just as easily go to Kroger, but chooses Scott’s, mainly for the prices and the “10 for $10” specials the store offers on various merchandise. She also is apprehensive about what effect the buyout will have on the local grocery market.

“That would leave me a cause for concern. When you don’t that competition edge out there, I worry about the prices,” Towles said. “You are going to go wherever the prices are right.”

source:www.fortwayne.com