City Bound: Mat-Su Chains Make Inroads in Anchorage and Fairbanks
Photo Credit: Alaska Business
Strategic growth has been part of the tale of Three Bears Alaska since the supermarket chain started in 1980 as a grocery store in Tok. Through the years, locations opened from the Kenai Peninsula to Healy and throughout the company’s home turf in the Matanuska-Susitna Borough. It even expanded into Dutch Harbor and opened a convenience store in Ketchikan.
Smaller communities were well served, but the company tended to avoid major population centers: a Chugiak outlet was the furthest foray into the Anchorage market, and the Gold Hill convenience store in Ester was the closest to Fairbanks.
That tendency is changing. Boldly planting its corporate flag in Fairbanks proper while confronting a competitor in Eagle River, Three Bears is making a grab for urban shoppers. What’s more, an upstart Mat-Su food service retailer is echoing that strategic pivot in its own way.
Choice and Convenience
Just this week, Three Bears opened two convenience stores in Fairbanks: one at 1321 Wembly Avenue and a second at 1688 Airport Way, both formerly Sourdough Fuel locations.
In Eagle River, a vacant Spenard Builders Supply store is now a suburban Three Bears gas station, although that description somewhat undersells the variety and quantity of merchandise available. Since it opened in December, the Three Bears location has mounted a direct challenge to the Fred Meyer supermarket a stone’s throw away, across Northgate Drive.
“The decision to set up near Fred Meyer is strategic, aiming to offer local residents a choice and the convenience of proximity, enhancing their shopping options within their own community,” says Kristofer Carlson, marketing manager for Three Bears Alaska.
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September 2024
Going up against a larger competitor can offer a business an opportunity to shine. Carlson says positioning near Fred Meyer does not fundamentally change Three Bears’ business model, but it does influence some aspects of operations.
“We continually adapt our product offerings based on community needs and preferences, striving to complement existing options available locally. This means we might emphasize certain unique products, like premium top-shelf liquors and a walk-in wine cooler, that differentiate us from Fred Meyer,” he explains.
The venture into Eagle River puts Three Bears a few miles closer to the nearest Costco Wholesale locations in the Anchorage Bowl. This is significant because Three Bears is known for reselling Costco items without the requirement to pay for a membership. This, too, provides an opportunity, Carlson says.
“While we recognize that some of our customers might shop at both locations, at Three Bears, we focus on providing value through a no-membership-required model, exceptional customer service, and unique product offerings not typically found at Costco. This approach helps us maintain a competitive edge by emphasizing convenience and uniqueness in our inventory,” he says.
Photo Credit: Three Bears Alaska
Expansion has been fueled by a partnership with Seattle-based private equity firm Westward Partners. While that financial arrangement helped provide liquidity to shareholders, Three Bears Alaska remains majority owned by Alaskans. With the company founder’s son Dave Weisz as president and CEO, Three Bears outgrew its Meadow Lakes headquarters and added a dedicated headquarters building near Pittman Road.
The company website lists thirteen stores in Alaska (plus one in Butte, Montana) and eleven gas stations (not counting the new Fairbanks locations). Further expansion into Anchorage is not currently planned, but Carlson says Three Bears will continue to expand elsewhere in Alaska. The North Pole location is slated to open late this year, and the company is working to finish a 20,000-square-foot convenience store in Delta Junction around the same time.
“I think the growth is exciting,” Carlson notes.
Sweetening the Big City
Three Bears has operated a gas station convenience store in downtown Houston for years, across the Parks Highway from the city’s hometown retailer, Millers Market. A giant ice cream cone outside the store served as a waypoint for highway travelers. It also spun off three Little Millers drive-through coffee and ice cream shops.
Longtime owners Debbie and Gary Miller sold the business last year, splitting it into two parts. The Houston Millers Market is owned by Jacob and Tessa Irish, and Alex and Shelby Betsill took over the three Wasilla-area drive-throughs.
The Betsills are adding a fourth. The newest opens this week in Anchorage at Benson and Arctic Boulevards, just a hop and a skip away from McDonald’s and Carl’s Jr., which also sell ice cream and coffee. To compete with national chains, Alex Betsill says his family hopes to build community through the retail venture.
“The heart of our family is to make a community impact, so when people come here, whatever kind of day they’re having, they leave a little bit better than when they pulled up,” he says. “We want to add value to the community.”
In addition to a drive-up kiosk, the Benson site features a separate outbuilding for cold storage. Ice cream flavors on the menu include blueberry, blackberry, and butterscotch, with the option for “flavor bursts” of add-ins like cotton candy. Smoothies, shakes, and sundaes are on the menu as well as espresso, tea, energy drinks and foods such as pretzels, hot dogs, and sandwiches.
The Little Millers motto is “Life is sweet,” and it’s about to be a little sweeter in Midtown.
