THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Tuesday, October 29, 1996 TAG: 9610290311
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY STEPHANIE STOUGHTON, STAFF WRITER
DATELINE: CHESAPEAKE LENGTH: 52 lines
Farm Fresh Inc. says it will bring a new, large style of grocery store to Hampton Roads next year, offering shoppers discount pricing and a wider variety of fruits and vegetables.
``This is the store we've designed to respond to the super centers, the new upscale stores and the low-priced guys,'' said Michael E. Julian, chairman and chief executive officer of the Norfolk-based chain.
Julian wouldn't say whether the mammoth store in Chesapeake's Greenbrier community would fall under the Farm Fresh banner or the company's discount operation, Rack & Sack. The chain could test another name, such as Farm Fresh Super Store.
At 90,000 square feet, the grocery store off Greenbrier Parkway will be among the region's largest when it opens in spring. It will include a full-service pharmacy, an automated teller machine and possibly a bank branch.
The store will offer a wide variety of fruits and vegetables, including hard-to-find items typically found in upscale and specialty supermarkets. Shoppers also will find discount prices on other grocery items.
Farm Fresh's latest move comes at a time when a wave of supermarket chains are moving into Hampton Roads. The Norfolk chain is still the region's market leader, but it has lost some shoppers to competitors such as Hannaford, Harris Teeter and Super Kmart.
``I think next year is going to be very challenging for Farm Fresh,'' said Jeffrey W. Metzger, publisher of the industry publication Food World. ``I do think they need something like this to distinguish themselves from the competition.''
But Metzger says Farm Fresh is probably in its best shape in years. The chain has renovated, retrenched and realigned its grocery stores. Most of the company's grocery stores - 38 Farm Fresh supermarkets and 13 Rack & Sacks - have been overhauled.
Even debt-rating agencies, which have expressed concern about Farm Fresh's viability, say the chain has managed to soften the impact of its competitors' openings.
Hannaford Brothers, a well financed chain from Scarborough, Maine, was expected to be a bigger threat to Farm Fresh. However, the chain hasn't done a bang-up job in the Southeast, Metzger said.
``As we say in the supermarket industry, `You only have one chance to make a first impression,' '' he said.
In addition, Hannaford and other retailers are finding it increasingly difficult to find prime locations in Hampton Roads. Farm Fresh and Food Lion, on the other hand, have long since snagged sites convenient to shoppers.
Still, the fight isn't over. ``It's going to be tough in Tidewater,'' Metzger said. ``There's going to be some bloodshedding in 1997.'' ILLUSTRATION: VP Map by CNB