Food City Acquiring Bi-Lo Stores in Chattanooga, Tennessee Area (Knoxville: vs., shop)

[Carolina Knight]

Originally Posted by shinestx

I tried out one of the F.C. stores that used to be a BI-LO, and must say I was disappointed. First, I judge stores on the quality of in-store baked goods... specifically bread. On this point, BI-LO never measured up... although I went there for other items such as milk and certain produce items. The problem now is that my family hates the taste of the Food City brand milk. I tasted it and must agree... it has a weird taste like it's been poured over cereal (yes, I checked the date). How do you screw up milk? The produce was okay, but the bread (and this is a huge gripe of mine!) is the very same as BI-LO's. I don't get it... there are a few basic differentiators between grocery stores, and I think F.C. missed a huge opportunity here to introduce themselves to a new market. Unfortunately, I don't see myself going back anytime soon.

Which Food City store did you go to?

Food City has several private label brands common with Bi-Lo stores: Full Circle, Paws Premium, Tippy Toes, and Top Care.

I wonder if Bi-Lo stores underwent a quick conversion to Food City. Bi-Lo's signage and private label products were removed. Pharmacy permits were or are being reissued by Georgia and Tennessee boards of pharmacy because of change in ownership.

I recall reading somewhere Food City will have an official grand opening for its acquired stores in November.

[Serious Conversation]

Originally Posted by Carolina Knight

Which Food City store did you go to?

Food City has several private label brands common with Bi-Lo stores: Full Circle, Paws Premium, Tippy Toes, and Top Care.

I wonder if Bi-Lo stores underwent a quick conversion to Food City. Bi-Lo's signage and private label products were removed. Pharmacy permits were or are being reissued by Georgia and Tennessee boards of pharmacy because of change in ownership.

I recall reading somewhere Food City will have an official grand opening for its acquired stores in November.

I have a family member who is a client of Food City and is working on these stores. These stores are being converted very, very quickly from Bi-Lo and up to Food City's standards.

[Carolina Knight]

Originally Posted by Serious Conversation

I have a family member who is a client of Food City and is working on these stores. These stores are being converted very, very quickly from Bi-Lo and up to Food City's standards.

I assume the conversions are still occurring now that all 29 Bi-Lo stores acquired are operating as Food City. Extensive projects like replacing equipment and interior decor and paint from Bi-Lo to Food City should be in progress or completed.

[Serious Conversation]

Originally Posted by Carolina Knight

I assume the conversions are still occurring now that all 29 Bi-Lo stores acquired are operating as Food City. Extensive projects like replacing equipment and interior decor and paint from Bi-Lo to Food City should be in progress or completed.

Yeah, they are still going on, but my family member is wrapping up the project. Apparently a lot of things about the stores were not up to Food City's standard, or they wanted them changed.

[Carolina Knight]

Originally Posted by Serious Conversation

Yeah, they are still going on, but my family member is wrapping up the project. Apparently a lot of things about the stores were not up to Food City's standard, or they wanted them changed.

I wonder if there are specific stores that are in need of extensive improvements. Food City #714 (previously Bi-Lo #5614), East Ridge Center, 6723 Ringgold Road, East Ridge, Tennessee 37412-4229, is one store that has not changed from the Red Food Store days.

[shinestx]

Thanks for the feedback. I have bought items at both the East Brainerd and Ooltewah-Ringgold locations (btw: I really am glad they kept staff at those stores). I appreciate the effort required to change all those stores and will give them another chance... but only after a while. I do want them to do well in Chattanooga, as I think it's important to have a lot of competition. Having said that, I am not a big fan of WalMart (doesn't matter what time of day or how many people in the store, I always have to wait 30 minutes at the checkout). But I plan to visit their Neighborhood Market concept this week. It is the only place in Chattanooga where I've been able to find certain items... like Skyline Chili.

[Carolina Knight]

Originally Posted by shinestx

Thanks for the feedback. I have bought items at both the East Brainerd and Ooltewah-Ringgold locations (btw: I really am glad they kept staff at those stores). I appreciate the effort required to change all those stores and will give them another chance... but only after a while. I do want them to do well in Chattanooga, as I think it's important to have a lot of competition. Having said that, I am not a big fan of WalMart (doesn't matter what time of day or how many people in the store, I always have to wait 30 minutes at the checkout). But I plan to visit their Neighborhood Market concept this week. It is the only place in Chattanooga where I've been able to find certain items... like Skyline Chili.

I think Bi-Lo ran its course in Tennessee. Food City may know markets in the state better than Bi-Lo.

Walmart may not be my first choice for groceries. It is better than Food Lion.

I wonder how Publix, Ingle's and Kroger will respond to Food City in Chattanooga. Publix does not have many stores in the market. Ingle's has outlying stores, but none in Chattanooga. Kroger was in the Chattanooga market decades ago. I do not know if it intends to re-enter through its own Kroger Marketplace hypermarket stores or through the acquisition of another competitor.

[Creekcat]

I don't think Publix was ever really seriously thinking of doing more than what its' doing now, in this area. Ingles will be a memory within 5 years.

[Carolina Knight]

Originally Posted by Creekcat

I don't think Publix was ever really seriously thinking of doing more than what its' doing now, in this area. Ingles will be a memory within 5 years.

Publix: Four stores in Hamilton County are enough for Publix to have presence and market share. I doubt they are enough to lead in or be dominant in market share.

Publix should continue to expand further into Tennessee with additional stores. Its future distribution center in McCalla, Alabama and existing distribution centers in Austell and Lawrenceville, Georgia would support that growth.

Ingle's: I do not know why Ingle's does not have a presence in Hamilton County.

Ingle's new stores are far removed from older stores in Jasper, Ringgold and Trenton, Georgia. They would be a step above Publix.

Ingle's has a good footprint. It could benefit by infilling with additional stores.

[shinestx]

Publix is all over the Nashville metro. Would be interested to see their market share there because its one of the markets where they go head-to-head against Kroger (Atlanta is too). I think I know Publix's * strategy from shopping there in Atlanta, Nashville and now Chattanooga. They lead on service, in-store baked goods, deli items and store-brands. Kroger seems to me to pull demand with rotating discounts on name brands and standard items. Went to the WalMart Neighborhood market and was pleasantly surprised. The ones in Chattanooga are brand new, but they are somewhat dark (no windows). Their aisles have a transept that cuts through all the aisles to make it easier to get from one end of the store to the other. As part of their strategy, of course they are the price leader on most items (noticed a cart with items from their competitor and their own cart of items and the price comparison was $185 (competitor) vs. $150 (WalMart NM). Their model is more of a distributive style (like their big boxes), but surprisingly their service was very good (took my cart in checkout immediately). I asked the checkout clerk if they were attempting to respond to their number 1 complaint that their big-box checkout lanes are always ridiculously long, and she nodded. Not sure if she was simply being politely noncommittal, or it's actually the company's effort. That is something I'll be interested to see when I go back sometime in the future... after they're more settled into the market.

* Trying to remember all the Publix locations in Chattanooga. So there's East Brainerd, Oolteway, Hixson, and North Shore/Market Street. Are there any others? Maybe in surrounding cities like Cleveland, Ringgold or Dalton?

After all this discussion on grocery stores in Chattanooga, a mention needs to be made of the several (3? or 4? including satellite cities) Targets here (low price and in-store brands, and of course the inclusion of non-grocery departments under one roof); the Fresh Market (only one in town); Whole Foods (one); Earth Fare (one); and Costco (one). Just to round out the market.