Bi-Lo’s Announced “Five Year Plan” Stolen Directly From Stalin

Bi-Lo-5-Year-plan

After restructuring brought on by bankruptcy, Bi-Lo’s Chief Financial Officer Brian Carney announced a “five year plan” to return to profitability. That plan involved remodeling existing stores, which he projected would cost $50,000,000 annually.

And this would, in some way, create profits.

Now I’m not the C.F.O. of a grocery chain but it seems to me that when you’re coming out of bankruptcy your business plan should not involve needing to spend $250,000,000 on construction projects that will only cosmetically change your failing business. This is good news for local contractors, but if I was working in a Bi-Lo I’d start getting my resume together.

You know who else had a “five year plan” for prosperity based around spending what little money they had on construction projects that may not be needed? The Soviet Union. Even communists admit these were unmitigated disasters.

Bi-Lo needs to adjust to market conditions to remain profitable. Higher costs for production, low crop yields and a declining purchasing power mean that consumers will be looking for places where value is added. People will not care if Bi-Lo is modernized, they will care if they can continue to live a upper middle class lifestyle on lower middle class budgets. They want their quality of life to remain relatively the same even as credit and wealth declines.

Rite Aid recognized this and is adding Save-A-Lot groceries stores in several locations. Aldi and Costco have long recognized this and offer deep discounts on quality foods and products. Bi-Lo can’t compete with these stores by remaining a higher priced store with a nicer interior. Instead, Bi-Lo should offer either better services or greater selection.

This kind of mismanagement is a crime in a state with unemployment this high. the $250,000,000 investment their planing will likely not be paid for in increased profits, but by lay-offs as people flock to the discount chains. Five year plans like this didn’t work in Russia, and they won’t work in South Carolina.

Comments

2 Responses to “Bi-Lo’s Announced “Five Year Plan” Stolen Directly From Stalin”

  1. tom on September 17th, 2010 12:47 am

    And it did’nt do Winn-Dixie any good either…

  2. Loup Garou on September 17th, 2010 10:52 am

    Thank God for Piggly Wiggly!

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