Charlotte Supermarkets

[tozmervo]

kudos to HT, they're paying for some curb improvements at Q2P2 that should make it a better intersection for pedestrians. down with wide turning radii! http://www.charlotteobserver.com/2012/08/09/3444234/upgrade-planned-for-myers-park.html#storylink=omni_popular

[ah59396]

^ so needed. I've almost been clipped walking/running through there on 2 non-consecutive occasions.

[tozmervo]

anyone know anything about the "Noda Produce Marketplace"?

[Third Strike]

US Foods is heading to the old Walmart on Eastway. Good to know that this location won't be empty for too long.

http://obswhatsinstore.blogspot.com/2012/08/us-foods-headed-to-old-wal-mart-site.html

[kermit]

While I am pleased that the walmart space will no longer be vacant it seems like an odd choice for a distribution warehouse. While the old anchor tenant space is being filled, it will not generate anywhere near enough consumer traffic to help the remainder of the shops in the complex stay solvent. I fear this represents the end of retail in the neighborhood.

[rugger62]

kudos to HT, they're paying for some curb improvements at Q2P2 that should make it a better intersection for pedestrians. down with wide turning radii! http://www.charlotte...nk=omni_popular

Turning lane from Providence to Providence getting extended!!!! Hopefully it will make the commute up Providence much less bottlenecked.

[Sabaidee]

Turning lane from Providence to Providence getting extended!!!! Hopefully it will make the commute up Providence much less bottlenecked.

That sounds so weird, turning onto Providence from Providence, that's Charlotte for you.

[Third Strike]

Just as a reminder, Whole Foods is grand opening on August 29th. If you want, they are currently holding tours prior to their grand opening on the 26th and 27th. There's a $5 donation fee for attending.

[Prodev]

I don't spend much time in the South Park area, but has anyone noticed how Whole Foods seems to be doing so far? I'm hoping they quickly outperform expectations. They recently announced they'd like to triple their number of stores, including adding smaller stores to underserved areas (ala their new downtown Detroit location). In their quarterly call, they also announced their new stores, a few of which were ground floor space within a mixed-use apartment building. I'd love to see them come back to the center city area since they were originally supposed to be a part of Grubb's Elizabeth Ave redevelopment.

[Neo]

I don't spend much time in the South Park area, but has anyone noticed how Whole Foods seems to be doing so far? I'm hoping they quickly outperform expectations. They recently announced they'd like to triple their number of stores, including adding smaller stores to underserved areas (ala their new downtown Detroit location). In their quarterly call, they also announced their new stores, a few of which were ground floor space within a mixed-use apartment building. I'd love to see them come back to the center city area since they were originally supposed to be a part of Grubb's Elizabeth Ave redevelopment.

We've been twice so far and it has been bustling each time. The first visit was their first Friday which was super packed.

it really was hard to move around and look. We returned this past Friday and things were a little calmer but still very busy.

I figure after 2-3 months we'll see the normal levels that can be expected. I expect that it will do very well and hopefully well enough for a prompt second location in Charlotte (Huntersville or University?).

[Niner National]

I think we'll definitely see locations in the Lake Norman area. Whether that be Mooresville, Cornelius, or Huntersville, I don't know. Maybe all three someday.

Ballantyne and Providence/Rea Rd areas are probably on the Whole Foods radar.

I'd love to see one go in near or in Uptown so I don't have to drive over to SP.

Whole Foods said last month that they want to double the amount of stores they have in the U.S. Many major markets already have good saturation, so I imagine much of the growth will come in new markets like Charlotte.

[HopHead]

Whole Foods in uptown would be awesome.. Though, we all probably know (as mentioned) that Ballantyne and/or Huntersville/Cornelius are further up the chain.

[kermit]

Publix is now advertising in the Observer....

[kermit]

Teeter is opening a new format store (called 201 Central) in Huntersville and Wesley Chapel. Sounds like the stores will have an emphasis on wine, beer (including local keg beer) and 'other specialty products'

http://www.bizjournals.com/charlotte/blog/morning-edition/2012/09/harris-teeter-introduces-201central.html?ana=e_clt_rdup&s=newsletter&ed=2012-09-17

[southslider]

^Any of these new format stores happen to be extra, former Lowe's stores that HT acquired? And "201 Central" would be a shout-out to HT's original location on Central, which in their system is called "Store #201" (not #1 for some reason).

[kermit]

^ yes, both of the new stores were Lowes acquistions. The Observer actually has a better article on this:

http://www.charlotteobserver.com/2012/09/17/3535498/201central-harris-teeter-launch.html

[Third Strike]

Publix is entering the Charlotte market. They plan to have a store at Providence Road West and Johnston Road, in Ballantyne.

http://www.wbtv.com/...e-in-ballantyne

[Niner National]

Yawn.

I've been in a couple Publix's in Florida before and I found them kind of dump to be honest. Maybe it was just the few stores I was in, but they reminded me of a Food Lion.

I'm more interested in seeing more Whole Foods and Fresh Market's open in the area.

[nonillogical]

Yawn.

I've been in a couple Publix's in Florida before and I found them kind of dump to be honest. Maybe it was just the few stores I was in, but they reminded me of a Food Lion.

I'm more interested in seeing more Whole Foods and Fresh Market's open in the area.

The ones you were in were likely older stores and more the exception than the rule. When I lived in Savannah Publix was most definitely the "nice" general supermarket in the area and was on par with our average to above-average Harris Teeters. I think that competition in this middle area is a long time coming around here. I grew up in the Raleigh area where there are a ton of different grocers and even the Food Lions are nice.

[kermit]

Charlotte will also be home to the Publix "division office." I don't know how significant this might be, they have five of them now.

http://www.bizjournals.com/charlotte/news/2012/09/19/publix-super-markets-to-enter.html?ana=e_du_pub&s=article_du&ed=2012-09-19

[mad_park]

Hopefully this will spur HT to upgrade/expand more of their 'in town' stores.

[ah59396]

The way people have been talking about Publix, you'd think they are giving out free food or something. I'm happy to see more work coming into Charlotte, but beyond that it's just another grocery store. You read some of the posts on the Observer and people are acting like HT is a s***hole and Publix the second coming of the Acropolis.

[nonillogical]

You read some of the posts on the Observer and people are acting like HT is a s***hole and Publix the second coming of the Acropolis.

I'm not surprised that Observer commenters found something in the story to be negative about even if they had to make it up, but really the two are very, VERY similar stores. As reasonably nice as Publix is on the inside, the vast majority of them have terribly bland and bargain-looking exterior designs. I'm hoping they try out some new designs in this market.

[HopHead]

I'm glad that Publix is entering the market if it means competition for Harris Teeter. It's a good thing. Hopefully it means the HT improves in some areas they are weak in. As far as the commentators on the Observer, yea, we all know they can't be positive about many things. A number of the people started their comments with "When I lived in such and such city..." so you know they are happy about having something they are familiar with. Something that I get annoyed with. Perhaps maybe if we add some Legal Seafood and Don Shula's Steakhouse restaurants all these people might actually be satisfied. Because you know, it's something they are familiar with coming from the northeast and Florida. God forbid if they actually like something that's from the Carolinas. Which is why Publix put their first Charlotte store in Ballantyne (aka the Florida-Buffalo plantation). (end of rant)

[kermit]

The way people have been talking about Publix, you'd think they are giving out free food or something.

Based on the last time these two chains overlapped (Atlanta in the mid 1990s) the free food prediction is not far from the truth.

HT arrived in Atlanta about two years before Publix (around 1993 if memory serves). At the time Kroger was the dominant Atlanta chain and was judged to be a weak competitor. HT moved into the affeluent portions of intown and the N Atlanta sububrs. Ironically HT showed a preference for smaller intown stripmall sites which were innovative (two stories before two stories was cool) and densly populated but which typically had limited parking. Atlantans (being Atlantans) were ticked off about the difficult parking and the Brookhaven and Morningside stores in particular. Despite the parking issues it appeared that Atlantan's generally liked the HT format (high price points and all) -- although some of this was a response to the general crappiness of Kroger and the absence of other options (such as the wholefoods equivalent stores which are so prevalent today).

When Publix moved into the Atlanta market around 1995 they took an 'outside-in' strategy building rapidly in the outer ring burbs and creating a critical mass which allowed for mass advertising throughout the metro (something HT never achieved). Once they were well established in the burbs they began to move intown and the Northern burbs where they competed directly w HT. Since Publix is 1) very well financed and 2) still a privately held corporation; it was able to cut prices (often well below cost) to capture market share. It took less than two years for HT to retreat from the Georgia market, and Publix prices quickly ratcheted back up to normal levels.

I have no doubts that HT will be a more aggressive competitor on their hometurf -- they can't retreat from Charlotte. However, based on the Atlanta model,it is clear this is going to be a messy and unpleasant experience for the smaller chain (HT). Publix has a great deal riding on its North Carolina bet, it is really the only growing market it is able to expand into. For distribution reasons they must have a stong foothold in Charlotte before they can move into the Triangle and Triad markets. If Publix get's shut out of NC due to HT's saturation then the growth propects of Publix become quite dim (the only other markets they can expand into are KY, AR, MS and LA, none of which offer much upside from an ROI perspective)

On the bright side, consumers will certainly benefit from the battle. We should see lower prices quickly and better (and more urban) stores eventually. Over the longer term I fear this battle will create an even larger oversupply of vacant grocery anchored strip mall space in the burbs given the Publix tendency to build new rather than occupy existing space.

EDIT: This is just speculation from an interested observer. I currently have no professional conections to either firm. Having shopped at both chains I prefer HT but I do view Publix as close competitor.

Edited September 21, 2012 by kermit