Gigante, Others See Strike-Linked Surge
By CHRIS CZIBORR
Orange County’s Hispanic markets are seeing a surge in business from the strikes besetting their big mainstream rivals.
Mexico’s Grupo Gigante SA de CV’s Anaheim store reportedly has seen a big uptick in sales during the strike.
Justo Frias, president of Gigante USA Inc.,the company’s Santa Ana-based U.S. arm,declined to comment because of the sensitivity of the situation. Gigante is unionized but isn’t subject to the strike.
Steven Soto, president of the Los Angeles-based Mexican American Grocers Association, said sales are up at Gigante and the other Hispanic markets, such as Anaheim-based Northgate Gonzalez Market and Fiesta Mexicana Market, also of Anaheim.
“Stores like Gigante are up as much as 40%,” Soto said. “All the markets are doing a tremendous business right now. A couple of them,I won’t tell you who they are,they hope this thing drags out for six months.”
The surge at Hispanic markets could temper this week after union officials said Friday workers plan to stop picketing Ralphs and step up pressure on Albertsons, Vons and Pavilions.
Even before the strikes, Gigante’s Anaheim store was pulling in an estimated $495,000 a week in sales, according to Soto.
Those prestrike weekly sales already were on par with a Ralphs or a Vons, Soto said.
Gigante is opening two newly built stores this week in South-Central Los Angeles. It also is opening a Chino store later this year.
Soto also said Commerce-based distributor United Western Grocers, which serves Gigante and others, hasn’t been able to keep products in the warehouse.
“All of this is because of the strikes,” Soto said. “A lot of people aren’t crossing picket lines. The stores are all hoping to keep some of this new business. One thing that we’ve told everyone is to make sure they run their businesses like they always do. We’ve told them to stay away from taking advantage of the situation by raising prices. They might get some permanent spinoff business because of the strikes.”
John Vallejo Jr., Anaheim store director for Fullerton-based La Rioja Ranch Market, said he has seen at a 10% uptick in sales at the company’s Fullerton store.
“Our Fullerton store is showing a bit of an uptick because there’s an Albertson’s directly to the right,” Vallejo said. “But at our Anaheim store there isn’t as much of an increase. There’s a Ralphs directly behind that store, but directly across the street from there is a Stater Bros. outlet.”
Colton-based Stater Bros. isn’t part of the strike and also is seeing a surge in business.
La Rioja also has stores in Santa Ana and Buena Park. Vallejo said there only was a modest uptick in sales at those outlets.
Officials at Buena Park-based Tawa Supermarket Inc., operator of the 99 Ranch Market chain catering to Asians, said they are seeing a 10% uptick in sales at three of 14 stores.
Duke Chang, Tawa’s chief operations officer, said that sales since the strikes began are up 10% at the company’s Van Nuys, Gardena and San Diego stores.
“Those stores have a larger customer base and a wider demographic than most of our other stores,” Chang said.
Two stores Tawa has in the Irvine area have seen sales rise 3% to 5%, he said.
The Mexican American Grocers Association’s Soto said that some market officials likely are downplaying the added businesses they are seeing because of the strikes.
“Sometimes they don’t want competitors to know how they’re doing,” Soto said.
