THE VIRGINIAN-PILOT  
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Wednesday, June 19, 1996              TAG: 9606190420
SECTION: BUSINESS                PAGE: D1   EDITION: FINAL  
SOURCE: BY STEPHANIE STOUGHTON, STAFF WRITER 
DATELINE: VIRGINIA BEACH                    LENGTH:   58 lines

CORRECTION/CLARIFICATION: ***************************************************************** A fact box with Wednesday's Business News story on Harris Teeter incorrectly described Hannaford Brothers' and Wal-Mart's presence in the area. Hannaford Brothers Co. has opened two grocery stores in South Hampton Roads. It plans to open more stores. Wal-mart has five discount stores and plans to open at least one combination discount-supermarket store in the region. Correction published Thursday, June 20, 1996, page D2. ***************************************************************** HARRIS TEETER ENTERS LOCAL MARKET TODAY THE GROCER OFFERS SHOPPERS ANOTHER CHOICE IN INCREASINGLY COMPETITIVE FIELD

Harris Teeter Inc., a Matthews, N.C.-based grocer, is barging into the local supermarket scene today with a store at Princess Anne Plaza.

The chain, which caters to time-starved, dual-income families craving homemade meals and gourmet foods, offers everything from goat's milk to made-from-scratch eclairs. Wine consultants can point shoppers to everything from the cheapest beer to a $200 bottle of Dom Perignon.

``We think there's a large unfulfilled need'' in the local supermarket arena, said John Hutchens, Harris Teeter's vice president of operations, who was at the store Tuesday.

In this market, however, Harris Teeter will face increasing competition.

In addition to Harris Teeter, Hannaford Brothers Co. and Winn-Dixie Stores Inc. are moving into the region. Super Kmart and Wal-Mart Stores plan to enter the fray with their so-called ``hypermarkets,'' which combine discount stores and supermarkets.

Market leader Farm Fresh Inc. and No. 2 Food Lion Inc. will likely feel the pinch, industry observers and grocery executives have said.

``Undoubtedly, we'll both shrink in market share,'' said Michael E. Julian, president and chief executive of Norfolk-based Farm Fresh. ``You can't add all this square footage. . . . The population is not growing that fast.''

Still, Harris Teeter may be able to squeeze in and grab enough market share to please its executives in North Carolina.

``I think their impact will be felt,'' said David Callahan of Food World, an industry publication based in Columbia, Md.

Shoppers concerned about price should know that Harris Teeter doesn't pretend to be the cheapest grocer in town. The retailer likes to think of itself as the store with the toniest selection of food - and that can mean an extra jingle in its cash registers.

In addition to the Virginia Beach store, Harris Teeter plans to open stores in Chesapeake's Greenbrier section in late fall and in Newport News in early 1997. Those supermarkets will be smaller than the 66,000-square-foot store in Virginia Beach, which will serve as the region's flagship store.

Harris Teeter also has been looking at several other Hampton Roads sites. It had hoped to locate near the Oceanfront off Laskin Road, but those plans fell through.

KEYWORDS: SUPERMARKET by CNB