Regional, National Supermarkets Intensify Northeast Expansion

At a time of intensifying competition in the supermarket segment, the northeastern United States demonstrates that regional supermarket retailers can strengthen their home bases.

In the annual Supermarket Report in the August 17 issue, HOMEWORLD BUSINESS® examines how the supermarket industry along the entire East Coast is changing, from the well-established major retailers to international brands to the growth of regionals. Market analysis examines the shifting players, expansion plans and what the future growth potential might hold for the supermarket retail channel up and down the East Coast.

Price Chopper, Wegmans and other chain independents have withstood intense competition from major chains based in the U.S. and overseas, remaining dynamic and relevant in their markets.

Meanwhile, A&P’s recent Chapter 11 filing has propelled change and is one example of the trouble big supermarket companies have had in operating in the Northeast. But it certainly isn't alone. Ahold and Delhaize, based in Holland and Belgium respectively, for example, are in the midst of a complex multi-banner merger.

Regional Strengths

A number of independent supermarket operators in the region have been able to invest and improve their market position. All the activity in the supermarket sector has generated speculation that major players such as Walmart, Kroger and others will find the East Coast and Northeast as having attractive growth prospects, but that doesn't mean regionals will find themselves overwhelmed.

Strong independent operators have had room to grow as upmarket alternatives to the strictly mid-market major chain supermarket banners.

Wegmans, for example, is now making a move into New York City. It announced that it would anchor the $140 million redevelopment of Admiral’s Row in the 300-acre Brooklyn Navy Yards. Although small by the standards of the latest Wegmans locations, the 74,000-square-foot supermarket would be the cornerstone of the area.

Price Chopper, a regional 134-supermarket chain operating from New Hampshire to Pennsylvania but centered on its headquarters in the Albany, NY, suburb of Schenectady, is focused on upgrading its operation as competition gets more intense.

Price Chopper has introduced a new, updated store concept, Market 32, which will represent half the chain within five years. Neil Golub, Price Chopper’s executive chairman of the board, said, "Market 32 represents the next leap forward for our company. We have evolved from the Public Service Market to Central Market to Price Chopper by responding to customers’ changing needs over time and Market 32 is the next natural progression for us."

For more of the Supermarket Report, see the August 17 issue of HOMEWORLD BUSINESS®.