THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Friday, June 14, 1996 TAG: 9606140599
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY STEPHANIE STOUGHTON, STAFF WRITER
LENGTH: 59 lines
Food Lion and newcomer Hannaford Brothers gained market share as Norfolk-based Farm Fresh Inc., still the market leader in Hampton Roads, lost ground in 1996.
``This year is kind of a pit stop before the real action begins next year,'' said Jeffrey Metzger, publisher of industry publication Food World.
Hannaford Brothers Co., based in Scarborough, Maine, is one of several, well financed supermarket chains entering the region. In close pursuit are Matthews, N.C.-based Harris Teeter and Jacksonville, Fla.'s Winn-Dixie.
Joining the fray will be a new type of competitor: the ``hypermart,'' a combination supermarket and discount store. Super Kmart and Wal-Mart Superstores envision their mammoth outlets dotting Hampton Roads.
``You're really dealing with five competitors - not all of them brand new but some of them relatively new - that have deep pockets,'' Metzger said. ``They are going to change the landscape of the market.''
Metzger says Farm Fresh and Food Lion may lose ground in following years. But he adds that Farm Fresh executives are prepared. The company has adjusted resources, made over stores and beefed up promotions.
Farm Fresh, which closed one store earlier this year, ceded a percentage point to end up with 38.1 percent of the market's supermarket sales, according to rankings in the June issue of Columbia, Md.-based Food World.
Food World's ratings, which cover mid-Atlantic markets, are based on sales from April 1, 1995, to March 31.
Competitor Food Lion, which opened two grocery stores in Hampton Roads, increased its market share by about a percentage point to 36.7 percent, the Columbia, Md.-based publication reports.
A spokeswoman for Salisbury, N.C.-based Food Lion attributed the company's improved rating to its growing MVP discount card program and longer store hours.
Unlike Farm Fresh, Food Lion is not as likely to be strongly affected by newcomers Hannaford and Harris Teeter, Food Lion spokeswoman Chris Ahearn said.
``Certainly, any time there's a new competitor in the market, the available food dollars are further divided,'' Ahearn said. ``But overall, we have not seen a major impact with Hannaford moving into our markets.''
Harris Teeter chases after more upscale customers, while Food Lion pursues consumers who don't demand extra frills, Ahearn said.
With two new stores in Hampton Roads, Hannaford Brothers Co. snared 2.1 percent of the region's grocery shoppers. Winn-Dixie added two stores and doubled its sales, grabbing a 1.8 percent piece.
The Super Fresh chain, which includes Farmer Jack stores, lost some ground, as did Be-Lo Foods, IGA and Murry's. ILLUSTRATION: VP Graphic
Source: Food World
Supermarket Market Share
Food Lion and Newcomer Hannaford Bros. seized 1996 market share from
Norfolk-based Farm Fresh Inc.
For complete copy, see microfilm
KEYWORDS: SUPERMARKET HAMPTON ROADS by CNB