QUOTE AND NEWS
DailyFinance  Jan 16  Comment 
IRVINE, CA --(Marketwired - January 16, 2014) - True Drinks, Inc. (OTCQB: TRUU), a healthy beverage provider with major entertainment and media company licensing agreements for use of their characters on its proprietary, patented bottles, today...
DailyFinance  Jan 8  Comment 
Juan E. Monteverde, a partner at Faruqi & Faruqi, LLP, a leading national securities firm headquartered in New York City, is investigating the Board of Directors of Arden Group, Inc. (“Arden Group” or the...
DailyFinance  Jan 3  Comment 
Rigrodsky & Long, P.A.: Do you own shares of Arden Group, Inc. (NASDAQ GM: ARDNA)?Did you purchase any of your shares prior to December 20, 2013?Do you think the proposed buyout price is too low?Do you want to discuss your rights?Rigrodsky ...
DailyFinance  Jan 2  Comment 
Rigrodsky & Long, P.A.: Do you own shares of Arden Group, Inc. (NASDAQ GM: ARDNA)?Did you purchase any of your shares prior to December 20, 2013?Do you think the proposed buyout price is too low?Do you want to discuss your rights?Rigrodsky ...
DailyFinance  Dec 31  Comment 
Former United States Securities and Exchange Commission attorney Willie Briscoe and the securities litigation firm of Powers Taylor LLP are investigating potential claims against the Board of Directors of Arden Group Inc....
DailyFinance  Dec 31  Comment 
The Law Offices of Vincent Wong are investigating potential claims against the Board of Directors of Arden Group Inc. (NasdaqGM: ARDNA) (“Arden Group”) state law in connection with the sale of the Company to TPG Capital. ...
DailyFinance  Dec 26  Comment 
Juan E. Monteverde, a partner at Faruqi & Faruqi, LLP, a leading national securities firm headquartered in New York City, is investigating the Board of Directors of Arden Group, Inc. (“Arden Group” or the...
DailyFinance  Dec 24  Comment 
Rigrodsky & Long, P.A.: Do you own shares of Arden Group, Inc. (NASDAQ GM: ARDNA)?Did you purchase any of your shares prior to December 24, 2013?Do you think the proposed buyout price is too low?Do you want to discuss your rights?Rigrodsky ...
DailyFinance  Dec 24  Comment 
Levi & Korsinsky is investigating the Board of Directors of Arden Group, Inc. (“Arden Group” or “the Company”) (NasdaqGM:ARDNA) for possible breaches of fiduciary duty and other violations of state law in connection...
DailyFinance  Dec 21  Comment 
Arden Group, Inc. (Nasdaq:ARDNA) (“Arden Group” or the “Company”), parent of Gelson’s Markets, an operator of 17 distinctive, full service specialty grocery stores in Southern California, announced today that it has...




 

Arden Group (NASDAQ: ARDNA) operates a chain of supermarkets in Southern California through its subsidiary Gelson's Markets. Arden managed 18 stores as of January 2, 2010.

Arden Group, Inc. (Company or Arden), is a holding company which conducts operations through its wholly-owned subsidiary, Arden-Mayfair, Inc. (Arden-Mayfair) and Arden-Mayfair's wholly-owned subsidiary, Gelson's Markets (Gelson's) which operates supermarkets in Southern California.

Market Operations

As of January 1, 2011, Gelson's operated eighteen full-service supermarkets in Southern California, which carry both perishable and dry grocery products. Gelson's offers a broad selection of local and national brands as well as a limited number of private label items. Gelson's targets the consumer who values superior customer service, merchandise, presentation and selection. Gelson's also operates a distribution center in the City of Commerce, California.

Company Overview

The company's founder, Bernard Briskin, is 87 years old and still behind the company's major decisions. He has significantly reduced his ownership from 70% to 60% over the past few years through stocks divestment.

Business Financials

In 2009, ARDNA earned a total of $431 million in total revenues. This was a decline from its 2008 total revenues of $479 million. Unsurprisingly, this had an adverse effect on ARDNA's net income situation. Between 2008 and 2009, ARDNA's net income declined from $25 million in 2008 to a net income of $22 million in 2009.

Business Segments

Supermarket Outlets

Arden Group operates 18 grocery stores under the name Gelson's Market. All stores are located in high income areas in Greater Los Angeles.[1] Additionally, all stores offer a branded Gelson's Market credit card to qualified customers.

Distribution

Arden Group leases a central warehouse and small truck fleet to supply its stores. Nearly half of all supermarket products are distributed through these warehouse leased by ARDNA; the rest are distributed directly by the producer. With a small number of stores in close geographical proximity to each other, Arden Group is able to minimize distribution costs and finds it just as cost efficient to pay some producers to deliver inventory directly to stores rather than to distribute the inventory itself.

Real Estate

Arden Group operates a wholly-owned subsidiary called Mayfair Realty. Mayfair Realty owns two Gelson's Market properties and a shopping center in which a Gelson's Market is located. The remaining properties are leased from third parties for an average period of 20 years.

Key Trends, Risks, and Forces

Arden Group Grows Revenue Solely Through Raising Prices, A Strategy That May Be Unsustainable in the Future

Arden Group's revenue growth was a result of higher product prices. However, this was partially offset by a reduced customer count. As food prices continue to rise - up an annualized rate of 6.1% since 2008 - the company may not be able to continue to raise prices without losing customers and shrinking revenue.[2] Although the wealthiest of Arden Group's customers may still buy at Gelson's Market, middle income customers may leave to lower priced alternatives such as Kroger Company's Ralph's or Safeway's Vons.

Competition

With its focus on high end products, Arden Group's primary competition is other premium grocers.

  • Whole Foods Market (WFMI), with 26 stores in Southern California, is Arden Group's largest competition in terms of product selection and location.[3]
  • Safeway (SWY), operating under the banner Vons in Southern California, competes with Arden Group to a lesser degree. Although it is one of the large Southern California grocers with 325 stores, Vons does not have as large a selection of premium products as Arden Group and targets a lower income customer.[4]
  • Kroger Company (KR), operating under the banner Ralph's in Southern California, competes with Arden Group to a lesser degree. Although it is one of the large California grocers, with 386 stores throughout the state, Ralph's does not have as large a selection of premium products as Arden Group and targets a lower income customer.[5]

References

  1. ARDNA 2007 10-K, Item 1, Page 1
  2. [1] Consumer Price Index Summary
  3. Whole Foods Online
  4. Vons.com
  5. Grocery Store Banners By State
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