DJL Research In The News

David J. Livingston is a panelist for the Retail Wire Brain Trust and his comments are published frequently.

He is an authority on the supermarket industry who is often quoted in the business press.

News articles for July–September 2004

Shopping for answers: Safeway Inc. added Dominick's to its basket of supermarkets six years ago, and the giant retailer has suffered from indigestion ever since
Chicago Tribune Online Edition, September 21, 2004

However, some analysts insist that it is only a question of when, not whether, Safeway will jettison the chain.

"They can continue to plug along losing money, but eventually it will all catch up," said David Livingston, a principal with DJL Research in Pewaukee, Wis. "Safeway has failed miserably."

Livingston said that Safeway likely will lose $1 billion on the purchase once it decides to sell. He said Roundy's Inc., a Milwaukee-based grocer now run by a former head of Dominick's before it was sold, would be the one chain most interested in the acquisition.

Cash system an answer to health insurance costs
Opinion: Guest Comment—The Business Journal, Milwaukee, September 10, 2004

Earlier this summer, my COBRA health insurance expired from my former employer. Now I have to get my own insurance. My wife and I have pre-existing health issues that make us uninsurable. We looked into getting insurance from the Wisconsin Health Insurance Risk Sharing Plan (HIRSP). The HIRSP premiums are about $682 per month; however, we will each now have a $2,500 deductible. . . .

We should put more control in the hands of the consumers to drive down prices. Also, we need to reward people who go to high-deductible health insurance and start weaning people off of the low deductible policies.

Citizens need to wise up and learn to be better consumers.

Dominick's gets new boss
Chicago Tribune Online Edition, September 17, 2004

After less than a year in office, the president of Dominick's Finer Foods has resigned and will be replaced by an experienced executive from the company's corporate parent, Safeway.

R. Randall Onstead Jr. was stepping down to "assume a more active role in administering the family's portfolio of investments," according to a Safeway statement. . . .

But some industry observers say Onstead may have had other reasons for leaving."For someone of his quality and intelligence, it's probably tough for him to take orders," said David Livingston, president of the grocery consulting firm DJL Research. He said he thinks Onstead wanted more autonomy from Safeway in running Dominick's.

Dominick's has lost business to the Jewel supermarket chain, Livingston said, in part because Dominick's dropped local brands in favor of Safeway house brands.

Roundy's plans central kitchen in Kenosha
JSOnline, Milwaukee, August 18, 2004

Milwaukee-based Roundy's Inc. plans to build a central commissary, with about 100 employees, to provide food and beverage items for the company's supermarkets, including the Pick 'n Save chain. . . .

Pewaukee supermarket consultant David Livingston said the move makes sense.

"This will certainly improve Roundy's branding in the area and enhance the value of the company," Livingston said.

Supervalu closing saddens neighbors: Market competition, lease cited as key to end of grocery store
Post-Crescent, Appleton, Wisconsin, August 10, 2004

When Nemecek’s Supervalu Foods closes at the end of September, it will leave a void in a neighborhood that enjoyed its amenities and convenience.

It also will underscore the competitive nature of the Fox Cities grocery store market. . . .

“You’ve got Copps, Pick ’n Save, Woodman’s and Wal-Mart in the market,” said grocery store analyst David J. Livingston, Pewaukee. “That’s a pretty good batch of competitors to go up against. It puts a lot of pressure on smaller neighborhood stores, like Piggly Wiggly and Sentry.”

Serving urban appetites: Pick 'n Save seeking a niche with hip downtown shoppers
JSOnline, Milwaukee, August. 4, 2004

Metro Market will serve a densely populated area that is more educated and affluent than the city as a whole. The store is just six blocks from the headquarters of Roundy's, which also operates Copps Food Centers throughout central and northern Wisconsin and Rainbow Foods in Minneapolis-St. Paul.

"This is a great place to test new products, and experiment with new ideas and technology," said David Livingston, a supermarket consultant based in Pewaukee.

Grand opening set for rebuilt 'Pig'
Lake Country Reporter, Village of Hartland, Wisconsin, July 26, 2004

About the only fixtures remaining from the old Piggly Wiggly on Cottonwood Avenue are the owners, Pat and Bob Fox.

The Fox Brothers will celebrate on Wednesday the grand opening and completion of the estimated million-dollar reconstruction of the store. . . .

Grocery industry consultant David Livingston of Pewaukee has said the brothers "may be the best operators" among Piggly Wiggly franchises in Wisconsin.

"They seem to be a bit more in tune with their market than lot of other independent operators," Livingston said

Costco warehouse store reported in works for Grafton
JSONline, Milwaukee, July 23, 2004

Costco's entry into the Milwaukee area will provide a new competitor for local supermarkets, said David Livingston, a supermarket consultant based in Pewaukee.

"This is definitely a bigger threat to supermarkets than Sam's Club," Livingston said.

Sam's Club—including stores in Franklin, Milwaukee, West Allis and Waukesha—has average weekly sales of $9.44 for each square foot of store space, compared with $16.21 for Costco, Livingston said.

Along with higher sales, Costco caters more to individual consumers than Sam's Club, which draw a larger share of its sales from small business owners, Livingston said. Costco also tends to have a more upscale selection of products, including food and beverage items, he said.

Slimmer Wal-Marts offer room to expand: Smaller Supercenter to open in New Richmond
JSOnline, Milwaukee, July 17, 2004

Wal-Mart's willingness to open a Supercenter that's a fraction of the typical 155,000- to 210,000-square-foot store indicates that more Supercenters are planned for Wisconsin, said David Livingston, a Pewaukee-based supermarket industry consultant.

"You can put these in a lot more places," Livingston said of the smaller stores.

Roundy's to buy seven Waukesha County stores: Firm to keep all markets open, retain employees
JSOnline, Milwaukee, July 12, 2004

The seven stores all boast high sales volume, except for the two supermarkets in Oconomowoc, said David Livingston, a former Roundy's real estate employee who's now a Pewaukee-based supermarket consultant.

"I think this is a real good fit for them," Livingston said.

Space project: Bursting at seams in Whitefish Bay, Sendik's opens more stores to give itself room to grow
JSOnline, Milwaukee, July 4, 2004

"You can always expect to get the best from them," said David Livingston, a Pewaukee-based supermarket consultant.

At Sendik's, Livingston said, a store employee can offer good advice about what type of wine to buy for a certain meal. At most supermarkets, that inquiry would receive a blank stare, he said.

Kmart to sell up to 54 stores to Sears
The Daily Oakland Press, Pontiac, Michigan, July 1, 2004

"Kmart's continuing operations certainly aren't going to make any significant money," said David Livingston, founder of DJL Research, a market research firm in Pewaukee, Wis. "Most likely, they probably won't be in the retail business for the next couple of years. This is probably the exit strategy they have planned.

“Most analysts will evaluate the competition using either a microscope or telescope. I use a proctoscope.”

— David J. Livingston