BELLINGHAM, WA – With Haggen's recent acquisition of 146 Safeway and Albertsons stores, the Pacific Northwest retailer is expanding its footprint from 18 to 164 stores across Arizona, California, Nevada, Oregon and Washington. With the anticipated growth, we decided to take a deeper look at this soon-to-be West Coast player. Here are 5 things you should know about Haggen.
CEO
According to a press release, CEOs John Clougher and Bill Shaner will lead the company. Clougher, CEO, Pacific Northwest, will have the primary responsibility for the northern division of Washington and Oregon. Shaner, CEO, Pacific Southwest, will have the primary responsibility for the southern division of California, Nevada and Arizona. After the close of the transition in early 2015, the two CEOs plan to convert all 146 Safeway and Albertsons stores to the Haggen banner in phases during the first half of 2015.
Fresh Produce
Haggen has developed a large network of farmers across the Northwest to supply its stores with fresh seasonal produce offerings. According to the company’s website, Haggen works hard to source produce from hyper-local farmers when possible. On the news of the acquisition, John Caple, Chairman of the Haggen Board of Directors and partner at Comvest Partners, reiterated this commitment saying, “We will continue our focus on sourcing and investing locally even with this exciting expansion.”
Suppliers
As we previously reported, Unified Grocers has entered into an agreement with Haggen to become the retailer’s primary and preferred supplier for all of the new California, Nevada and Arizona locations. Unified, along with Supervalu, will also act as a key supplier in the new Oregon and Washington store locations as well.
Origin
According to the Orange County Register, Ben Haggen (rhymes with Reagan), Dorothy Haggen and Dorothy’s brother Doug Clark founded the store in 1933 during the Great Depression with just $1,100 (approximately $19,500 today) in Bellingham, Washington. The company is now Washington’s sixth largest company. Ben and Dorothy’s sons, Don and Rick, have served as co-Chairmen of the Board and maintain minority stakes in the company.
Ups and Downs
Seattle Business reported that Haggen was hit hard during the economic downturn, with revenue sliding to $740 million in 2009 from $844 million in 2008. In 2011, Haggen family members gave majority ownership to private investment firm Comvest Partners. Between 2011 and 2014, the company closed nearly a dozen stores. Then, Haggen announced that it would be acquiring the 146 new stores this month.
Stay tuned to AndNowUKnow as we continue to track the trajectory of this retailer.
