Dive Brief:
- Kansas City, Kansas-based Price Chopper is planning to invest $54 million in new stores and store remodels in 2020, the company announced in a press release. Price Chopper has invested a total of $104 million into its stores in the past three years, which includes this new funding.
- Price Chopper will use its investment to expand fresh departments in stores, including bakery, deli and meat, produce and foodservice. The grocer will also open new stores in Gardner, Kansas, and Smithville, Missouri. Remodels will take place in Overland Park, Kansas; Leavenworth, Kansas; and Kansas City, Missouri.
- The investment is expected to add about 300 jobs.
Dive Insight:
Price Chopper has focused on slow and steady growth recently, with one store opening in 2018 and three in 2016, but with this year's spend, it appears the grocer is looking to ramp up its efforts. According to the press release, the investment for 2020 is more than the past two years combined.
The banner currently has 51 stores and a 40-year history as a local grocer owned and operated by four families, and hasn’t expanded much beyond its target region of Kansas City.
Competition around Kansas City isn’t as hot as it is in other parts of the U.S., but there are still grocers looking to expand their regional footprint there. Hy-Vee, for example, announced a $90 million investment in Kansas and Missouri last September, with plans to remodel 14 stores and support a new online fulfillment center. Walmart also has a significant regional presence.
With remodeled stores and new fresh departments, Price Chopper will remain on track with other grocery stores. Last July, Price Chopper introduced a revamped rewards program that allows shoppers to redeem points for food or fuel. The new program also includes a mobile app that makes it easier for customers to track and redeem their rewards digitally.
The retailer began a partnership with Instacart in 2017 to offer shoppers grocery delivery in Kansas and Missouri. With the expansion of Instacart Pickup, Price Chopper customers can also get their online grocery orders through click-and-collect.
