Fresh Produce Paradise

To adapt to changing consumer habits and cash in on the growing trend toward urban living and grab-n-go products, Walmart has accelerated the opening of smaller concept stores, which now total about 27 within Georgia. Walmart Neighborhood Markets (which includes several rebranded Walmart Express stores) average 15,000 to 45,000 square feet and offer shoppers groceries, fresh produce, and economical organic products.

Walmart also has been experimenting with mini stores nicknamed “smallmarts,” on college campuses. A Georgia Tech store, which opened in 2013 and was very popular with students, closed in 2015 reportedly due to a lack of storage space. Other locations, however, are doing well at schools in Arkansas, Arizona, Virginia, and Missouri.

Kroger
Kroger has spurred its growth with a customer loyalty program, data-driven new product offerings and promotions, and money-saving private label products that represent 25 percent of its sales (excluding gasoline and pharmacy). The ‘Simple Truth’ brand of organics joined store lineups in 2013. In a June 2015 statement, Kroger’s CEO noted “incredibly strong growth” in fresh items, such as produce, due to customer demand for healthier and fresher foods.

While big box retailers like Walmart are going small in response to changing consumer demand, Kroger is taking a contrarian view by going big, rolling out Kroger Marketplace to challenge Walmart and Costco. The Kroger supercenters include a broad selection of products in addition to groceries and produce such as apparel, jewelry, Little Clinic health centers, and gas stations. Two Kroger Marketplace stores opened in North Athens and Gainesville, GA, and another is expected to open in Cartersville in October 2016.

Publix
With about 150 stores in the greater metro area, Publix has been able to hold its own with the big boys. The regional chain entered into the Atlanta market in 1991.

“Publix hangs its hat on providing excellent customer service,” says Reid. “George Jenkins founded Publix in 1930. He always said ‘If you take care of your associates, they will take care of your customers.’ We still follow that motto today,” she states, adding, “Publix is also known for its clean stores and fresh products.”

The company sources locally whenever possible, with many varieties of fresh product grown within the states of its various locations. “Since we have stores in six states throughout the South, local could mean anywhere within those states—Florida, Georgia, Alabama, South Carolina, Tennessee, or North Carolina,” explains Reid. “We purchase products based on quality and taste. Shipping it by the mile is relevant to the price, but quality is our number one priority.”

The grocer’s GreenWise Market brand of natural and organic products was introduced five years ago, in 2010. Reid says demand for these products has risen, but “conventional items still lead the way.”