Smart & Final Expansion: New Stores & Growth Plans In Focus
Is Smart & Final truly poised for a significant resurgence, or is its growth story merely a fleeting trend? The retailer's commitment to expansion, coupled with its impressive same-store sales figures, suggests a compelling narrative of strategic adaptation and market penetration.
The trajectory of Smart & Final in the retail landscape continues to be a fascinating one. For the second quarter that concluded on June 14th, the company's performance has been notable, bolstering its pursuit of growth through its "extra!" format. This strategic focus is manifesting in a series of new store openings and conversions, signaling a proactive approach to capturing market share.
One of the upcoming Smart & Final Extra! locations is slated to open its doors at 2058 West Avenue J, with an anticipated launch date in October. Furthermore, the company is extending its footprint north of San Diego, with another new Smart & Final Extra! store. The Temecula, California location, situated at 32937 Temecula Parkway, is gearing up for a grand opening on April 24th. This expansion drive prominently features the "extra!" format, designed to cater to a wider range of consumer and business needs.
Adding to this momentum, Smart & Final is also making headway in San Jose, California. A new Smart & Final Extra! location is in development, aimed at serving both households and businesses within Santa Clara County. This reflects the company's intention to solidify its presence within key Californian markets, capitalizing on existing brand recognition and adapting to evolving consumer demands. The company's vision for growth is ambitious, aiming to inaugurate 20 new Smart & Final Extra! stores. In addition to new store openings, there are plans to transition nine existing stores into the "extra!" format, which also includes three store relocations and the opening of three cash & carry stores, incorporating one store relocation.
Smart & Final's strategies encompass a range of key areas, including pricing, private label offerings, expansion, distribution, and merchandising, which are all pivotal in its competitive approach. A new Smart & Final Extra! is nearing completion in Torrance, California, as of December 12, 2017, which marks another important development in their growing presence.
In 2018, the retailer aimed for a more measured growth trajectory, recognizing the potential for expansion within the industry. Smart & Final is a grocery warehouse chain that emphasizes speed and efficiency. Based near Los Angeles in Commerce, California, the company provides a diverse selection of high-quality products in various sizes, designed to save customers both time and money, with no membership fees. Its Smart & Final Extra! stores represent a larger format combining elements of traditional grocery stores with warehouse-style bulk purchasing.
In the northwest of Mexico, Chedraui operates 15 Smart & Final stores. Smart & Final's expansion strategy also included the acquisition of the Henry Lee Company in 1994. This move, which was serving Florida, Central, South American, and Caribbean markets, enabled the company to broaden its distribution network. The Henry Lee acquisition, a major foodservice distributor, facilitated the expansion of Smart & Final's cash and carry operations.
Smart & Final, having transitioned to private ownership in a $1.1 billion deal in June, operates 324 stores. This includes 255 Smart & Final Extra! and legacy Smart & Final locations, as well as 69 Smart Foodservice Warehouse Stores. Apollo Management, the private equity firm that acquired Smart & Final, is now considering the sale of the Smart Foodservice division.
Weekly ad scans and sales promotions are readily available, providing customers with various deals and discounts. Several sources, like the Northgate, Dollar General, CVS, Target, and Kroger weekly ad scans, are also accessible for consumers to discover great deals.
The Retail Archaeology YouTube channel provides a visual tour of a Smart & Final Extra! store. Moreover, online grocery shopping offers convenience, including fresh produce, pantry staples, and digital coupons. This aligns with modern consumer expectations, allowing customers to shop online for quality and variety, delivered directly to their doorsteps.
Smart & Finals journey began in 1953, in partnership with Haas, Baruch & Co. The introduction of Smart & Final Extra! in 2008 reflected the company's aim to adapt to changing consumer preferences. Chedraui USA, the fourth-largest grocery retailer in California and the parent company of El Super, Smart & Final, and Fiesta Mart stores, revealed plans for expansion and a significant logistics integration effort.
Smart & Final is positioned as a grocery warehouse store for household and business customers. It's expanding its presence in California and operating 254 stores under two brands: Smart & Final and Smart & Final Extra!, across California, Arizona, and Nevada. It also manages 16 additional stores in the northwest of Mexico through a joint venture. Smart & Final stores cater to both households and businesses.
Smart & Final is a price club format, differentiating itself from competitors like Costco by not requiring membership. It offers individual and bulk product options, making it suited for both small and large-scale purchases. These stores function as self-service warehouses specializing in the wholesale and semi-wholesale distribution of groceries and miscellaneous products without membership requirements, operating under the "Smart & Final" banner. They distribute products under the "Smart & Final" brand, owned by S&F US.
A diverse selection of items for business, home, and office is available without membership, with locations in Tijuana, Ensenada, Mexicali, Tecate, Rosarito, and San Luis RC. Chedraui acquired the Smart & Final price club on July 28, 2021. This acquisition resulted in a sales increase of 48.2% in the third quarter of 2021.
The store added more space to it making it a total of 20,803 sq. ft. Expansion plans also include registration to see the Smart & Final / Smart & Final Extra! expansion plans and site requirements. AI expansion cause analysis is available to register for free to see the AI analysis of Smart & Final / Smart & Final Extra! There are also four associated brokers with the business. It is possible to register and view which retailers represent Smart & Final.
Convenient and quick delivery services are available on their website. The company is also listed as Smart & Final Stores LLC in multiple documents. Five of the 32 stores will be repurposed as new locations for existing Smart & Final stores. The remaining 27 stores represent the expansion of the extra brand.
Smart & Final - Key Developments and Expansion Timeline
| Date | Event | Location/Impact |
|---|---|---|
| Ongoing | Focus on Growth and Expansion of the "Extra!" Format | Driven by impressive same-store sales. |
| Q2 (ended June 14) | Impressive Same Store Sales | Driving expansion plans. |
| October (Planned) | New Smart & Final Extra! Opening | 2058 West Avenue J |
| April 24 (Grand Opening) | New Smart & Final Extra! Opening | 32937 Temecula Parkway, Temecula, California |
| Ongoing | New Store Development | North of San Diego, California |
| Ongoing | New Store Development | San Jose, California (Santa Clara County) |
| 2018 (Target) | Targeted Modest Growth | Strategic approach to expansion. |
| December 12, 2017 | New Smart & Final Extra! Completion | Torrance, California |
| 1953 | Smart & Final Founded | Partnership with Haas, Baruch & Co. |
| 2008 | Introduction of Smart & Final Extra! | Response to evolving customer needs. |
| 1994 | Acquisition of Henry Lee Company | Expanded distribution network. |
| June | Going Private | $1.1 billion deal |
| July 28, 2021 | Chedraui Acquired Smart & Final | Sales growth. |
Smart & Final
| Aspect | Details | Significance |
|---|---|---|
| Business Model | Grocery warehouse store, catering to both households and businesses. Offers quality products in various sizes without membership fees. | Combines elements of traditional grocery stores with bulk-buying warehouse formats. |
| Store Formats | Smart & Final (legacy format) and Smart & Final Extra! (larger format). | "Extra!" format focuses on increased product offerings and caters to diverse customer needs. |
| Expansion Strategy | Focus on opening new Smart & Final Extra! stores, converting legacy stores to Extra! format, and opening Cash & Carry stores. | Aggressive growth strategy aimed at increasing market share and adapting to changing consumer demands. |
| Store Count | 324 Stores as of June 2024. | Provides customers with greater access to products, services, and promotions. |
| Key Markets | California, Arizona, Nevada, and 16 stores in the Northwest of Mexico. | Focus on states with large populations and opportunities for growth. |
| Acquisition of Henry Lee Company (1994) | Added to the store to make it a total of 20,803 sq. | Enhanced distribution capabilities. |
Smart & Final Website
