Chattanooga

[nwgeorgia]

Even though I'm just south of the border from Chattanooga, I'm still inside the MSA...

For years a local grocery chain called Red Food led the CHA market. In time, the stores were bought out by Bi-Lo which in turn sold its stores to a holding company.

Even though loyalty and goodwill toward the chain has faded, the long-time strength of the stores prevented "better" grocers from entering the market. Consequently, as Hunstville and Nashville enjoy Publix, Chattanooga lags in any real choice: It's Food Lion, Bi-Lo or Wal-Mart since Winn-Dixie is leaving.

It seems like a small concern, but the market is ripe for a shake-up.

Do you think this is an accurate appraisal of the situation?

[sleepy]

Even though I'm just south of the border from Chattanooga, I'm still inside the MSA...

For years a local grocery chain called Red Food led the CHA market. In time, the stores were bought out by Bi-Lo which in turn sold its stores to a holding company.

Even though loyalty and goodwill toward the chain has faded, the long-time strength of the stores prevented "better" grocers from entering the market. Consequently, as Hunstville and Nashville enjoy Publix, Chattanooga lags in any real choice: It's Food Lion, Bi-Lo or Wal-Mart since Winn-Dixie is leaving.

It seems like a small concern, but the market is ripe for a shake-up.

Do you think this is an accurate appraisal of the situation?

<{POST_SNAPBACK}>

Sounds like it to me.

That's an awfully small number of grocers to have in an area Chattanooga's size. Don't they at least have Krogers?

[it's just dave]

That does seem like a short list. At one point, Nashville had few players, but as the city has grown, we've seen Kroger updating and adding stores, Harris-Teeter has a growing presence, Publix is all over now, Wild Oats is considering expanding in Green Hills at the same time the large Whole Foods is building. Fresh Market is in Brentwood and considering a new location. Even H.G. Hill (whoever owns it now) is adding an urban grocery inside the Viridian Tower downtown. Then there's the IGA and these pretty nice new Walmart Neighborhood Markets which are popping up in many neighborhoods. I think Chattanooga will get their due. It just takes time.

[nwgeorgia]

Kroger pulled out 20 years ago. For specialty-upscale items we do have a Fresh Market. Otherwise, that's it.

The presence of Wal-Mart as a grocery retailer probably helps keep new players from coming in. Still, a lot of folks just don't want to put up with the hassle of going to W Mart.

[it's just dave]

I'm not talking about a typical Walmart, nwg. The Neighborhood Markets are free-standing grocery stores with drive up pharmacies, fresh produce, excellent fixtures and appearance. They're typically under 50,000 sq ft and built in areas far and away from the large suburban Walmarts. It's like having the benefits of the pricing without the hassles of a big box Walmart. The one opening in East Nashville in August or September replaced a long-decayed trailer park an an ugly old used car lot. Another one opens a few miles further out in Madison at the same time. An old firestation built in the 20s (I think) was allowed to remain. Kroger probably doesn't appreciate the competition, but I plan to shop there. Besides, it's the first nice new major grocery construction in the area in years. Even though Kroger is doing a massive renovation on the neighborhood store where I live, this new one will get my attention unless Kroger's management begins to instruct its employees that customers deserve a bit better service than what's currently offered. Neighborhood-wise, I'm not alone is this assessment.

The Neighborhood Markets are very nice stores. Here's a link with an interior picture and description.

http://www.answers.com/topic/wal-mart-neighborhood-market

These would be a good fit in urban Chattanooga where land is tight and the need is great.

[GSP Tiger]

Chattanooga's supermarket situation is very interesting.

With Winn Dixie (including Winn Dixie Marketplace) leaving the Chattanooga area, Bi-Lo appears to be the front runner. The only stores already in the bidding process to be sold are at St. Elmo Central (Chattanooga), North Hixson Marketplace (Hixson) and Greenwood Marketplace (Harrison).

I would not be surprised to see Publix enter the Chattanooga market anytime soon. They already have a presence in Nashville, and their Tennesee stores are included in their Atlanta division.

Wal-Mart remains on straying away from its Neighborbood Markets stores. The only thing you will see them build in mostly every market is Wal-Mart Supercenter stores. That is not a very good sign.

[jmanhsv]

Since Huntsville is the same size as Chattanooga, and you did mention us, I'd thought I would give my opinion.

Yes, we have Publix and Kroger. We had Publix before anyone else outside Atlanta and Florida. But besides Wal-Mart (dont get me started), thats it. In the past 6 months, we have lost Food World, Bruno's and now Winn Dixie. I feel that we are underserved here as well. There are three other chains that are minor players in our market- SuperTarget, Piggly Wiggly , and the new Dollar General Markets, but they only have two or three stores in the metro, unlike the "Big 3", which all of them have 7 or 8 stores. BI-LO looks like it wants to enter the market, because they are buying some of the Winn-Dixie stores. However, we do not have the supermarket selection that Nashville does. No "organic" supermarkets. No Albertson's, Food Lion, Harris Teeter or whatever else they have there.

I think Chattanooga's situation will change soon. Publix will come soon, it is inevitable. If you dont already have Target, then expect a SuperTarget sometime. I don't think Kroger is expanding right now, too much competition with Wal-Mart. Publix and SuperTarget are nice stores. They are both clean and well-stocked, and Target does not have the warehouse look that the Wal Mart supercenters do.

[flith]

Kroger pulled out 20 years ago. For specialty-upscale items we do have a Fresh Market. Otherwise, that's it.

The presence of Wal-Mart as a grocery retailer probably helps keep new players from coming in. Still, a lot of folks just don't want to put up with the hassle of going to W Mart.

<{POST_SNAPBACK}>

I could never figure out why other grocery stores couldn't make it in Chattanooga. The following have all been in Chattanooga and pulled out or gone out of business: Kroger, FoodMax, Albertson's, and now Windixie for the 2nd time. Of course there is the local chain Pruett's that is for the most part gone now. I think they have 2 locations Signal Mtn, and GreenLife in N. Chattanooga.

[Mith242]

My metro isn't as large as Chattanooga's but we have the same problem. In some ways it's even worse because my metro is Wal-mart's backyard and no one wants to come here. You basically have Wal-mart or Harp's, a local chain. There are a just a few IGA's but they have already filed backruptcy once and are still having problems and there's talk of Harp's taking them over. Leaving basically only two players in the grocery 'market' here in northwest Arkansas.

[sean]

Does Chattanooga have a Whole Foods or a Fresh Market, or an upscale grocer similar to these two?

[it's just dave]

I don't think so, but it seems Chatt would be a perfect fit. Nashville's got a Fresh Market and Whole Foods will be anchoring a new development in Green Hills (ironically only a stone's throw from the Wild Oats). Chattanooga's personality just seems right for these kinds of stores. Time will tell, but people down there should start writing letters.

[flith]

I don't think so, but it seems Chatt would be a perfect fit. Nashville's got a Fresh Market and Whole Foods will be anchoring a new development in Green Hills (ironically only a stone's throw from the Wild Oats). Chattanooga's personality just seems right for these kinds of stores. Time will tell, but people down there should start writing letters.

<{POST_SNAPBACK}>

We have a Fresh Market in the Hamilton Place Mall area, and GreenLife in North Chattanooga is similar. GreenLife is mostley organic and speciality items, it is run by a local Grocer Pruetts.

[Brian]

I believe Kroger is still looking to re-enter the Chattanooga market... I suppose Publix is doing the same thing...

[Brian]

There are at least two Kroger stores in Dalton, Ga., that is considered in the Chattanooga area...

[ATLBrain]

I know that Publix made a bid on many Winn Dixie properties including most of them in Chattanooga, but the bid wasn't high enough for WD.

Kroger pulled out in the early nineties. They were mismanaged and really nasty according to my colleagues in our Chattanooga office. Overall, I think Kroger has gone downhill in that period here in Atlanta too.

[Lexy]

Publix locates where there is money. It is a more upscale grocer, so that is where they go. The Regional Office for Nashville is in Atlanta. Trucks on their way to Nashville pass through Chattanooga. It would only make sense to put a cluster of stores there. In the future that may happen, but right now they are trying to gain market share in the Nashville MSA. There are even talks about a Distribution Center in the Nashville area too! Chattanooga should just wait and see what Publix does. Let it finish with Nashville and then see what happens. Wal Mart doesn't phase Publix when they look at building stores. Wally World couln't hold publixs' jock strap when it comes to supermarket marketing/merchandising and public/customer satisfaction.

[Rural King]

If they put a distribution center in Nashville does that mean places like...umm I don't know....Memphis (obviously ), Jackson, Paducah (KY), etc could get one? How large does a city or town usually have to be to get one?

[ATLBrain]

The grocery industry is all about critical mass for distribution.

With Publix's clear intent to buy the old WD properties in SE Tenn and North Georgia, it's a matter of time before they move into East Tennessee. Right now though, I know Publix is really busy building their presence in Nashville. They want to have 20 stores by 2008 there.

My buddy with Stormont is spending a lot of time up in Nashville. When things settle down up there, I'd expect Publix to get busy filling in the areas between Atlanta and Nashville.

[memphian]

I would go as far to say that Memphis is an under-served market as well. We have your two staples, Kroger and Walmart and then Scnucks, which is based in St. Louis. After that we're pretty much starving for a better experience and more competition to drive down prices. Sure, Piggly Wiggly was founded here but I think there may only be like 2-3 stores tops, nothing that will really make a dent in things. It seems very odd to me that we have so few grocery stores.

[Hankster]

A very recent new entry in Chattanooga in the Grocery business is Aldi. They opened their first store in the area a few weeks ago.

[ATLBrain]

Wow, I shopped at Aldi all the time in Berlin!

[flith]

I believe Kroger is still looking to re-enter the Chattanooga market... I suppose Publix is doing the same thing...

Publix is entering the Chattanooga market just announced today. They are building two units one in Hixson and the other at an undisclosed location. The Hixson unit will be at the intersection of Hixson Pike and Cassandra Smith Rd and have 54340sq feet and 250 employees. The article says that there will probably be more than 2 built in the long run.

[HABANERO7]

Is the other locaton going to be in Collegedale at the old Winn Dixie or did Bi-Lo move into that unit?

[flith]

Publix is entering the Chattanooga market just announced today. They are building two units one in Hixson and the other at an undisclosed location. The Hixson unit will be at the intersection of Hixson Pike and Cassandra Smith Rd and have 54340sq feet and 250 employees. The article says that there will probably be more than 2 built in the long run.

I just read the Times Free Press article, it had more information than the Chattanoogan.com. The second location will be at the closed WinnDixie next to Hurricane Creek on E. Brainerd Rd. The E. Brainered location will open first in the summer of 2007, followed by the Hixson location in the fall of 2008. The Times Free Press states that it will bring 150 jobs instead of the 250 in the Chattanoogan.com.

[ATLBrain]

I heard about this a couple of weeks ago from my friend who builds-out stores for Publix. The company is trying to get a store in East Brainerd, but there aren't too many good locations. There is the old W-D store, but the owners want a gold mine for the lease.

I think the old W-D store in Collegedale is still vacant. According to my friend, they would like to get that location too, but they'll probably build over near the new WalMart. Apparently, there are over 4,000 new homes going in around the Exit 11 area. I find this amazing, since no announcement has been made for Enterprise South yet, right?