Cub's new "flagship" store looks like another Cub
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Cub Foods' new Burnsville store. Photo: Nick Halter/Axios
Cub Foods is calling its new Burnsville store a "flagship," but the chain's newest supermarket reveals how little the brand has changed over the years.
Why it matters: Sales have been falling at Cub Foods in recent years and the chain has lost market share. Its parent company, UNFI, promised to "resuscitate" the brand two years ago, but major changes have not been visible.
Zoom in: On a self-guided tour of the Burnsville location — a rebuilt former store — the new Cub sparkled with polished concrete floors, tall ceilings and lots of natural light.
- But the product mix was still very much the Cub Foods that Twin Cities shoppers have grown to expect after decades visiting some of the company's 70+ metro stores.
Dig in: Cub Foods pointed to a new facade, more organic options and a take-and-bake frozen bread program as evidence of an "elevated shopping experience" at the new store.
- There's a self-serve hot deli bar with the normal Cub Foods staples — fried chicken, meatloaf and glazed carrots, as well as a few less typical items like pastas.
- Cub has relaunched its partnership with meat and cheese supplier Dietz & Watson and said the brand will expand to stores across the metro. It's not clear what this means for longtime vendor Kretschmar, as Cub did not answer an Axios question about the supplier.
- The store has only five checkout lanes, much fewer than in a typical large-format Cub. Meanwhile, there were 11 self-checkout stations.
What they're saying: Cub is a "middle of the road" grocer and most of those brands have been struggling for 25 years and losing market share to value retailers and specialty stores, said former Wedge Community Co-op CEO Josh Resnik.
- "It's hard to significantly change your brand and change the DNA of who you are," Resnik told Axios. "I think they're kind of struggling with that."
Yes, but: Resnik pointed to Kroger, another middle of the road brand, which has used data and analytics to compete with Walmart — the nation's top grocer — on value.
- Recent local media price comparisons at metro grocery stores have put Cub behind Aldi, Walmart and Target. Cub lowered some prices over the winter — Axios noticed reductions on milk, salads and packaged goods — but some of them have ticked back up.
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