It's no secret that there are some regional supermarket chains facing tough times as they go up against bigger competitors.
Marsh Supermarkets, according to a recent Indianapolis Business Journal report, had been for sale but is not currently because its owner, Sun Capital Partners, was not able to get the price it wanted. The chain, which in the past had often been mentioned among the innovators in the grocery business along side the likes of H.E.B., Publix and Wegmans, has fallen on tough times in recent years going up against Meijer, Kroger, Target and Wal-Mart in Indiana.
Another chain, Schnuck Markets, finds itself in the odd position of having to deny rumors that it is closing up shop in one of its market areas because of a recent store closing in the Memphis, Tennessee market.
At the time, Scott Schnuck, chairman and CEO of the chain, said in a press release, "We are now facing increasing pressure from five competitors within a two-mile radius, including two supercenters. In our experience, grocery options in Cordova have well exceeded demand."
Since that announcement, speculation has been that Schnucks couldn't cut it in Memphis.
"There is absolutely no truth to any claim that we're leaving Memphis," Lori Willis, director of communications for Schnuck Markets, told The Commercial Appeal. "The Cordova closing was an isolated case and there are no plans to close or sell any of our other properties. We have not talked to any other companies."
According to The Commercial Appeal report, Publix was named as a possible suitor for Schnuck stores in Memphis. A spokesperson for Publix, Brenda Reid, told the paper, "We have no confirmed expansion projects to announce for Memphis or the surrounding area. Our Tennessee presence is primarily in Nashville and Chattanooga."
Discussion Questions: How do you perceive the current state of regional supermarket chains in the U.S.? Is Schnuck Markets better or worse positioned than most to succeed?