Grocery Stores Diversify in 2016

In the world of milk and eggs, 2015 was a strange year for grocery stores in San Diego.

After a year of grocery stores opening and then folding, 2016 will see a diversity of markets locally.

Haggen, a Washington state chain, opened 19 stores in San Diego in 2015, but high prices and poor selection forced the company to close its doors and file for bankruptcy.

SDSU professor Miro Copic says that Haggen teaches us that money alone cannot win over shoppers.

“Horrible execution on every level,” he explained of Haggen’s expansion last year.

Some of Haggen's former stores will become Asian and Hispanic markets. Gelson's and Bristol Farms will offer high end choices, but the majority are turning into Smart and Final Extra stores where low prices and bulk sizes shake up the grocery landscape.

“You have a whole slew of new players in the marketplace. You have an expansion of the ethnic concepts,” Copic told NBC 7.

Winco and Aldi are also coming to San Diego and their low prices may push Ralphs and Vons to lower their prices to stay competitive.

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