Dive Brief:

• Food Lion is continuing its remodeling work with a new investment of $212.5 million to update 112 stores in Delaware, Maryland, Pennsylvania, Virginia and West Virginia, the grocery chain announced Wednesday. 
• The remodeled stores will feature more prepared, local and private label products, including packaged meals, pre-sliced deli meats and cheeses, craft beers and limited reserve wines, store brand meats and natural and organic items. Customers can also expect to see new signage and product grouping along with a “more efficient” checkout process aimed at making shopping faster. 
• As part of the project, the grocer said it’s rolling out its pickup service called Food Lion To-Go at roughly 40% of the refurbished stores. 

Dive Insight:

The latest announcement builds on the grocer’s efforts in recent years to invest in its existing stores with new layouts, services and offerings coupled with a marketing strategy focused on consumer ease, freshness and affordability. 

Food Lion said it has so far remodeled more than 90% of its stores, which span more than 1,000 locations across 10 states. Last year, the grocer announced a $158 million remodeling of 92 stores across South Carolina in March and a $40 million remodeling of 23 stores in Virginia following its investments of millions of dollars toward upgrading stores in the last few years. 

The latest announcement appears to respond to the economic turmoil due to the novel coronavirus pandemic, with Food Lion emphasizing its focus on affordability and job creation at the remodeled stores. Food Lion President Meg Ham said in the announcement that shoppers can expect low prices, weekly sales and promotions to continue once the remodels are done.  

To combat food insecurity, Food Lion said it is planning to make “considerable” donations, to local food banks that are members of nonprofit Feeding America. The donations will include $100,000 to the Maryland Food Bank to support food wellness initiatives, $75,000 to the Food Bank of Delaware for a refrigerated truck purchase and $60,000 to the Capital Area Food Bank for food purchases. The grocer is also giving $1,000 to each feeding agency that gathers food rescue items from the 112 stores, amounting to $112,000 in extra donations. 

As for jobs, the grocer said more than 2,300 associates have been hired as part of the latest remodeling effort, which, according to an economic impact study, is expected to generate $360 million for the cities and towns across the five states. 

Food Lion also highlighted its efforts to expand grocery pickup — a service that has grown popular during the pandemic — and also note that many of the 112 stores getting remodeled also offer home delivery. 

When each store finishes its remodeling, shoppers can expect giveaways of items like reusable shopping bags and gift cards to celebrate.