Dive Brief:
- Food Lion has finished remodeling 153 supermarkets in the Charlotte, North Carolina, region as the grocer moves ahead with a multiyear effort to upgrade nearly all of its stores.
- The Ahold Delhaize-owned chain said it spent $484 million on the omnichannel-focused project, which follows upgrades to 167 Food Lion stores elsewhere in North Carolina and in Virginia completed last year.
- Food Lion has seen average weekly sales at remodeled locations outpace sales at unrenovated stores, Ahold Delhaize CEO Frans Muller said Wednesday during the Netherlands-based retailer’s third quarter earnings call.
Dive Insight:
Improvements to the newly renovated Food Lion locations include energy-efficient lighting and refrigerated cases with doors. The refreshed stores, all of which are in North or South Carolina, also offer updated assortments that emphasize convenience, including a broad range of meals that are ready to cook, heat or eat, according to the East Coast supermarket operator.
Most of the upgraded locations also received self-checkout lanes, and some were equipped with carbon dioxide-based cooling systems.
Food Lion, which operates over 1,100 stores in 10 states, is based in Salisbury, North Carolina, a Charlotte suburb.
“Charlotte is a special market for us because it’s our hometown,” said Food Lion President Greg Finchum, who took over as leader of the chain in May. “Every enhancement is designed to meet our customers’ evolving needs — whenever, wherever and however they shop with us.”
Ahold Delhaize sees its best opportunities for U.S. expansion in markets Food Lion serves, according to Muller. The chain, which has posted positive same-store sales growth for 52 straight quarters, is also benefitting from population and economic growth in the areas where it operates, he said.
In a reflection of Food Lion’s success, the chain has started construction on 92 store remodels in the Greensboro, North Carolina, area, Muller added. The chain plans ultimately to renovate 1,000 locations, he said.
“We’re in a very good spot there, and that’s why we need more capacity. So it’s a logical effect of our success,” Muller said.
In another sign of Food Lion’s continuing evolution, Ahold Delhaize announced last month that it would invest $860 million to construct a distribution center in Burlington, North Carolina, that is intended to mainly support Food Lion.
