Good afternoon,
Food Lion is preparing for the next phase of the grocery wars.
Times have been good for supermarkets, despite higher costs related to Covid-19, but competition will stiffen over the long term.
The North Carolina chain, owned by Netherlands-based Ahold Delhaize, recently completed a $200 million-plus makeover of 112 stores in the mid-Atlantic and Southeast region.
It works out to about $2 million a store, depending on how you factor in Food Lion’s newest location off New London Road on Newark’s northern edge. Delaware has a total of 19 stores.
Food Lion carved out a solid niche in the Delaware market with smaller stores and competitive pricing. At the same time, the company needed to spiff up tired-looking stores and expand its grocery offerings.
Food Lions still have that Carolina touch with a selection of country hams and Goody’s headache powder. The newly remodeled stores now stock more ethnic, and specialty food items and have more energy-efficient enclosed freezer cases.
Based on a Towson University study, the remodeling will add nearly 400 jobs in Delaware. The economic impact estimates will depend on Food Lion’s success in an increasingly crowded marketplace.
One example can be seen on Route 40 across from the Bear Food Lion, where site work is now underway on a new Lidl market.
The German grocer, which has stores in Dover and Middletown, offers discount pricing through private label products. Lidl’s German rival Aldi is also adding stores in Delaware.
Next up will be Wegmans, the highly regarded upstate New York supermarket chain, which already has a chunk of the Delaware market’s northern edge thanks to its store in Chadds Ford. Wegmans will add a store in the Barley Mill area, a short drive from President-elect Biden’s home.
The pressure will continue to build on Acme, the regional chain owned by Albertsons, the nation’s second-largest grocer. Acme has been spiffing up its stores but continues to face tough competition from Shoprite’s large-format stores. Acme has closed stores at the edge of its Delaware Valley stronghold.
Other players include Giant, another brand from Food Lion owner Ahold Delhaize; Albertsons’ Safeway stores; and Pennsylvania-based Redner’s, which established a solid presence in central and southern Delaware.
Years ago, Food Lion’s ambitious expansion plans hit a wall in Texas a state dominated by HEB. It joined other chains that exited or cut back their presence in that massive market.
HEB only has stores in Texas and Mexico but maintains a devoted following similar to the one we see for Wegmans.
Food Lion has 1,000 stores in the southeast and Mid-Atlantic, with 77,000 employees.
Closing time comes early
Finally, if you want a late-night drink or bite to eat, it may be a good idea to stop off at the local supermarket or package store.
Under Gov. Carney’s emergency order, all bars and restaurants close at 10 tonight due to the surge in coronavirus cases. It probably means the last call is at 9:30 with everyone out of the place by 10. Neighboring states are under similar orders. – Doug Rainey, chief content officer.
