Dive Brief:
- Food Lion will spend $110 million to remodel 71 stores in the greater Richmond, Virginia, market, according to the Shelby Report.
- The planned remodels are part of the retailer’s “Easy, Fresh and Affordable… You Can Count on Food Lion Every Day!” strategy.
- Food Lion is in the midst of 93 store remodels in the greater Greensboro, North Carolina market, and has already completed 142 stores in greater Charlotte in 2016, 162 stores in the greater Raleigh area in 2015, and 76 stores in the greater Wilmington and Greenville markets in 2014.
Dive Insight:
Rather than looking to expand, Food Lion is investing in its existing stores by spending $110 million to remodel 71 locations in the greater Richmond, Virginia, market during the next year.
The Richmond stores, the sixth market to be overhauled, will be completed between June and October. The company, a unit of Ahold Delhaize, will then make decisions on another round of renovations for its stores. The remodel efforts are expensive, but many industry observers agree they’re a savvy step for a company whose stores were beginning to show their age.
The retailer’s “Easy, Fresh and Affordable…” strategy also aims to grow sales velocity through a three-tiered pricing plan that offers deals on essential items and best-selling products, as well as special deals for loyalty card holders.
The remodeled stores offer customers easier navigation and quick shopping as well as an expanded assortment that is relevant to the grocer’s customers in each store, such as more local products like beer and wine, and natural and organic selections. As more niche retailers start to gain a presence, this is a good way to keep customers in its stores.
Food Lion is not alone in making changes to its stores. Aldi recently announced it has started its own $1.6 billion remodeling project for its stores located near where Lidl’s first stores will be, including Fayetteville, NC, one of Food Lion’s own big areas. The first 20 of Lidl's U.S. stores will open this summer in Virginia, North Carolina and South Carolina, and an additional 80 locations will open within a year.
Food Lion seems to be taking the right step to position itself to thrive in a competitive retail environment, but like all grocers, it's going to take more than an attractive store to keep pace with the likes of Wal-Mart and Amazon.
