Chattanooga

[Rural King]

Good news for the Chattanooga market. How is the competition in Chattanooga currently? Will Publix fill any gaps in the current grocery market?

[flith]

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?

No announcement on Enterprise South yet. TDOT just finised widening I-75 to Enterprise South, the next phase of widening will go approx 1 mile north of exit 11. The widening was planned in the 90's because of all the new housing going in out there.

[HABANERO7]

The Chattanooga Market currently has Wal-Mart, Bi-Lo, and Food-Lion as the major players. Other smaller players include Aldi, and Save-a-lot. Local owned include the Pruett Food Town locations and the organic grocery stores market is served by Greenlife and the Fresh Market.

Just for note, Foodmax (later Albertsons) and Winn-Dixie have both come and gone in the past few years without making much of a dent in the market.

[HABANERO7]

Bi-Lo had some interesting timing today with a news article in the Times Free Press just two days after a news release mentioned Publix moving into the Market.

The Times Free Press reported that Bi-Lo is planning to sink $37 million dollars into the regional market in the next 18 months to upgrade small stores and to build some new stores. The newest additions to the market will be 2 Bi-Lo Super centers measuring 63,000 sq ft in size. One in Hixson and one in Ooltewah.

Another interesting note about Kroger's possible idea of coming into the market area. Cleveland just up the road is home to a 1.5 million sq ft Kroger distribution center.

There are 2 Kroger

[HABANERO7]

Publix received final approval and should start soon on their first location in the Chattanooga area on Hixson Pike in Hixson.

[Hankster]

Publix received final approval and should start soon on their first location in the Chattanooga area on Hixson Pike in Hixson.

[ATLBrain]

At this time, they plan the store in Hixson and in an old Winn Dixie in East Brainerd.

[Hankster]

At this time, they plan the store in Hixson and in an old Winn Dixie in East Brainerd.

[nwgeorgia]

Look for another Chattanooga Publix announcement soon. I know where it's going...just not when...

[ATLBrain]

You mean where they (2) will go, right? There's the one in Hixson and the one in E. Brainerd.

[nwgeorgia]

You mean where they (2) will go, right? There's the one in Hixson and the one in E. Brainerd.

[nwgeorgia]

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?

[ATLBrain]

Oh, so you mean a possible third location. I had not heard anything, but I haven't talked with my buddy in several weeks. He is based here in ATL. I'll have to dig around on that one. I'll see him next week and maybe he'll confide the new Ooltewah location with me. Of course, like the first two locations, I wouldn't be able to tell either, but that's interesting to know.

He's the one who told me about the old W-D location in Collegedale and how much they were asking. Plus, Publix had already made a bid on all the W-D locations in the Chattanooga area and lost out on it. So I'll be sure to ask him.

[DaltonGA]

Lack of competition in the Chattanooga area is a legacy of Red Food holding a 60% share of the market here for many years prior to the Ahold(BiLo) buyout. While BiLo has its present marketshare in the 35-40%, only Wal-Mart has approached the chains share. Winn-Dixie made two attempts at the market-the first from the early 60's to 1975 and returned in 1995 only to leave with the chains bankruptcy in 2005. Bruno's has made three attempts in Chattanooga. It's first, as Bruno's in the early 70's, lasted until the mid-70s, was Bruno's first store outside of Alabama. The second entry was as Consumer Warehouse Foods in the late 70's which closed in the early-80's. The third attempt was as FoodMax around 1990 which was sold to Albertson's in 1999. Albertson's only lasted about two years before closing. Kroger had a long run in the market, from the 1940's until 1989. The number of stores waxed and waned over the years, but was 7 when they pulled out. Local chain have risen and fallen-Home Strores, M&J, and Goodlett's are long gone. Pruett's has two stores left-Cherokee Blvd and Signal Mountain, down from over 10. Atlanta-based Colonial pulled out in the 1960's. A&P closed its last three stores in 1972. Food Lion arrived in 1988, and while the Soddy-Daisy and LaFayette, GA stores have since closed, still operates at a dozen locations in the region.

Ingle's has surrounded Chattanoog/Hamilton County, being as close as Ringgold and Trenton in Georgia and Jasper in Tennessee. The Dayton Ingle's closed a few years back due to competition from Wal-Mart and BiLo.

Dalton has held on the chains the longest of the area cities, Kroger has a long history here, currently operating 2 stores. Winn-Dixie lasted from its arrival in the early 60's until the 2005 bankruptcy. BiLo is present due to Red Food. Colonial, as Big Star, closed in the early 80's. Big Apple, another now gone Atlanta chain, closed in the early 80's as well. Food Lion is more recent to Dalton opening one store in 1999 and the other in 2000. Wal-Mart has been a supercenter operator here for over a decade.

Cleveland was long Red Food and local independents-Cooke's, Watson's and Calfee's. The transition from Red Food to BiLo and the arrival of Wal-Mart Supercenters coincides with the decline of the independents. Only Cooke's is a strong operation today.

Food Lion has been around about as long as it has in Chattanooga. Kroger has the Peyton distribution center here but no stores.

Publix finally arriving will bring a true alternative to BiLo and Wal-Mart to Chattanooga and Dalton and Cleveland locations will probably soon be added. Their entry makes a return for Kroger much less likely, but not entirely out of the question. Kroger has been aggressively responding to Publix in Atlanta and Nashville by remodeling and seeking out new sites around those cities before Publix. Also, Kroger has been cutting prices to be more competitive with Wal-Mart and to undercut Publix.

Publix offers good sale prices and quality perishibles, but most prices are higher than what shoppers at BiLo, Wal-Mart, or Food Lion are accustomed to. Customer service is the best of any chain in the southeast if not the country and it is largely the reason Publix customers are willing to pay a slightly higher price. However, Publix targets the middle and upper income demographic and is very selective about store location. Much of Southeast Tennessee and Northwest Georgia is "too blue-collar" for their tastes.

[Hankster]

Great post, DaltonGA! Thanks for all the info. There was a lot there I didn't know. I think it is an important development that Publix is coming into the market. I consider it an alternative to Bilo. Still, I think the real alternative that has recently come to the Chattanooga markey is Aldi. Aldi is offering a less expensive alternative to any grocery store chain in the area and is considerably less expensive than Walmart. Aldi does not offer near any many brands as the others but it sure is great when you discover you've spent roughly half as much.......YES, half as much. After shopping there, I wonder why on earth I'd shop anywhere else.

[nwgeorgia]

Lack of competition in the Chattanooga area is a legacy of Red Food holding a 60% share of the market here for many years prior to the Ahold(BiLo) buyout. While BiLo has its present marketshare in the 35-40%, only Wal-Mart has approached the chains share. Winn-Dixie made two attempts at the market-the first from the early 60's to 1975 and returned in 1995 only to leave with the chains bankruptcy in 2005. Bruno's has made three attempts in Chattanooga. It's first, as Bruno's in the early 70's, lasted until the mid-70s, was Bruno's first store outside of Alabama. The second entry was as Consumer Warehouse Foods in the late 70's which closed in the early-80's. The third attempt was as FoodMax around 1990 which was sold to Albertson's in 1999. Albertson's only lasted about two years before closing. Kroger had a long run in the market, from the 1940's until 1989. The number of stores waxed and waned over the years, but was 7 when they pulled out. Local chain have risen and fallen-Home Strores, M&J, and Goodlett's are long gone. Pruett's has two stores left-Cherokee Blvd and Signal Mountain, down from over 10. Atlanta-based Colonial pulled out in the 1960's. A&P closed its last three stores in 1972. Food Lion arrived in 1988, and while the Soddy-Daisy and LaFayette, GA stores have since closed, still operates at a dozen locations in the region.

Ingle's has surrounded Chattanoog/Hamilton County, being as close as Ringgold and Trenton in Georgia and Jasper in Tennessee. The Dayton Ingle's closed a few years back due to competition from Wal-Mart and BiLo.

Dalton has held on the chains the longest of the area cities, Kroger has a long history here, currently operating 2 stores. Winn-Dixie lasted from its arrival in the early 60's until the 2005 bankruptcy. BiLo is present due to Red Food. Colonial, as Big Star, closed in the early 80's. Big Apple, another now gone Atlanta chain, closed in the early 80's as well. Food Lion is more recent to Dalton opening one store in 1999 and the other in 2000. Wal-Mart has been a supercenter operator here for over a decade.

Cleveland was long Red Food and local independents-Cooke's, Watson's and Calfee's. The transition from Red Food to BiLo and the arrival of Wal-Mart Supercenters coincides with the decline of the independents. Only Cooke's is a strong operation today.

Food Lion has been around about as long as it has in Chattanooga. Kroger has the Peyton distribution center here but no stores.

Publix finally arriving will bring a true alternative to BiLo and Wal-Mart to Chattanooga and Dalton and Cleveland locations will probably soon be added. Their entry makes a return for Kroger much less likely, but not entirely out of the question. Kroger has been aggressively responding to Publix in Atlanta and Nashville by remodeling and seeking out new sites around those cities before Publix. Also, Kroger has been cutting prices to be more competitive with Wal-Mart and to undercut Publix.

Publix offers good sale prices and quality perishibles, but most prices are higher than what shoppers at BiLo, Wal-Mart, or Food Lion are accustomed to. Customer service is the best of any chain in the southeast if not the country and it is largely the reason Publix customers are willing to pay a slightly higher price. However, Publix targets the middle and upper income demographic and is very selective about store location. Much of Southeast Tennessee and Northwest Georgia is "too blue-collar" for their tastes.