Dive Brief:
- Stater Bros. Markets is refreshing its logo and look in honor of its 83rd birthday, reports the Orange County Register. The chain operates 172 locations in Southern California.
- The store will shed its 1970s vibe for a more modern aesthetic with its logo and will also refurbish the interior of 45 stores, which is expected to be completed by October.
- Stater Bros. has been making other upgrades in recent years, including fresh sushi and a wider beer and wine selection. The company's executive vice president described the look as "simple, clean and uncluttered" so customers can have a relaxing shopping experience.
Dive Insight:
Founded in 1936, Stater Bros. has a long history in California and, according to the OC Register, the rebrand is much needed to attract shoppers other than a "grandparent." From large banners like Aldi to high-end specialty grocers like Bristol Farms and Gelson's, the region's grocery landscape is saturated, and remaining relevant in Southern California is no easy task.
A store remodel is an important endeavor for older banners to reengage shoppers and to showcase upgrades that are better aligned with current consumer preferences. Stores typically see a boost around these efforts, too. For example, Target reported a 2% to 4% jump in sales following store makeovers in 2017, attracting both loyal customers and new customers who were curious to see the redesign. Target continues to remodel stores to offer a different environment complete with concrete flooring, curved aisle ends, and more grab-and-go items at the front of the store.
Remodels are rampant in the grocery industry as players with an established presence work to update their image and compete with newer, more innovative models. Last fall, Ahold Delhaize’s Stop & Shop banner unveiled a fresh look at 21 Connecticut stores, complete with meat smokers and frictionless checkout. The grocer expected a 7% increase in headcount from the remodel.
Also in Connecticut, Wakefern's Price Rite is remodeling five stores this year following successful overhauls at three stores in Pennsylvania. Similar to Stop & Shop and Stater Bros., the remodels include enhanced store features, improved lighting and updated decor. Food Lion recently shelled out $158 million to revamp 92 of its stores in South Carolina. The new format features key upgrades to the deli and bakery departments as well as walk-in produce coolers.