- Food Lion announced it will spend $178 million to remodel 93 stores in the Greensboro, NC market as part of its “Easy, Fresh and Affordable” campaign, according to Progressive Grocer.
- This is the fifth market where the retailer has remodeled its stores since 2014, when Food Lion launched the campaign. The company also plans to update the rest of the more than 1,000 stores it operates.
- The “Easy, Fresh and Affordable” campaign focuses on bringing more fresh products into stores, making stores easier to navigate, and introducing a more sophisticated pricing platform.
Food Lion’s store remodels are pricey, but industry observers agree they’re a necessary step for a company whose stores were beginning to show their age.
The “Easy, Fresh and Affordable” model builds in updates that are crucial for any traditional grocer that wants to stay competitive in today’s market. These include an increased emphasis on fresh foods, more natural and organic products, a new logo and a floor plan that’s easier for shoppers to navigate.
The initiative also looks to increase sales velocity through a three-tiered pricing plan that offers deals on essential items and best-selling products, as well as special deals for loyalty card holders.
Judging from earnings calls from the past few years, the updates seem to be delivering sales in line with company expectations. But will this be enough to give the company an edge over the likes of Harris Teeter, Wal-Mart and Aldi — which just announced its own $1.6 billion store remodeling plan? Similarly, Food Lion’s e-commerce partnership with Instacart seems to be capitalizing on shopper demand, especially in urban markets such as Charlotte and Raleigh-Durham. Will it be enough to withstand the likes of Amazon?
Food Lion seems to be taking the right steps toward innovation. But with traditional grocers under siege from alternative formats, more needs to be done if Food Lion and other grocers are going to thrive in the coming years.