CHARLOTTE — The Florida-based Publix supermarket chain is set to open two stores in the area this year — one each in York and Lancaster counties in South Carolina — marking the retailer's first push into the Charlotte-area market.
The move could dramatically ratchet up local grocery competition, depending on how many stores Publix eventually opens.
Both supermarkets will be in new shopping centers. One Publix is set for Fort Mill, at a shopping center at Gold Hill and Pleasant roads. The other will be in the Cross Creek shopping center, being built at U.S. 521 and Doby's Bridge Road. Both stores are expected to open late this year.
"You're going to see a war for a while down there," said supermarket analyst Phil Lempert. "If I were Harris Teeter, it's really going to be a call to action, to be on your game. ... As (Publix) has proven in Atlanta, they can go into a market and really do a bang-up job."
Publix operates more than 1,000 grocery stores in Florida, Alabama, Tennessee, Georgia and South Carolina. The chain is the seventh-largest grocery retailer in the U.S. by revenue, according to trade publication Supermarket News, with about $25 billion in sales last year.
Could increased competition from such a large chain help lower prices for consumers? It's possible, Lempert said. But with a well-established hometown retailer like Matthews-based Harris Teeter, Lempert said customer loyalty could be a factor in addition to price.
Last year, Harris Teeter had 22 percent of the region's grocery market share, according to data from Chain Store Guide, a retail tracking firm. That was second to combined Wal-Mart/Sam's Club, which held 26.2 percent, and ahead of Food Lion's 19.2 percent share.
On Monday, Publix spokeswoman Brenda Reid wouldn't say how many stores Publix plans to build in the Charlotte-area market, or if the chain will build stores in North Carolina. Currently, the closest Publix stores to Charlotte are in the Spartanburg and Columbia markets in South Carolina.
Although she wouldn't confirm whether Publix is planning any more stores in the Charlotte area, Reid did say, "We never say never at Publix."
The company is not publicly traded, and Publix stock is held by employees, directors and other insiders. The company's supermarkets are widespread in Florida, with more than 700 locations.
Doug Baumgartner, of York Development Group, said he expects to begin pouring foundations for the 50,000-square-foot Publix at Cross Creek in February. The big-name tenant is having a positive effect on the rest of the shopping center, he said.
"Leasing is going very well," said Baumgartner. "Publix carries a great name with them."
Harris Teeter operates 204 stores, with $4.3 billion in revenue last year.
"Harris Teeter always has and will remain focused on its core philosophy of providing customers outstanding quality and service at great values," said Harris Teeter spokeswoman Catherine Reuhl, responding to news of Publix's entry into the Charlotte region.
The supermarket battle won't be a two-player game, however. In Charlotte's grocery market, Wal-Mart, Aldi and Food Lion position themselves as competing primarily on price.
Harris Teeter, Bi-Lo, and Winston-Salem based Lowes Foods occupy the traditional mid- to upper-market segment. Then there are the specialty stores such as Trader Joe's, Whole Foods (opening this year) and Asheville-based EarthFare.
Many have loyal clientele. The arrival of Publix, Lempert said, will be a test of "whether or not just having a new kid on the block is enough to get them to switch."
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