Wegmans debuted its first store in Charlotte, North Carolina, on Wednesday, and the regional grocery chain hardly needed to take extra steps to drum up excitement.
Local news outlets have devoted steady attention to the long-awaited new supermarket, and Wegmans expected such a large crowd when the store opened to the public Wednesday morning that it said it would allow customers to spend the night before in its parking lot, the Democrat & Chronicle reported.
But Wegmans isn’t taking its ability to succeed in one of the nation’s most competitive grocery markets for granted. While the chain has long sought to distinguish itself through its shopping experience and expansive prepared food selection, it’s positioning itself in North Carolina’s most populous city as a low-price leader.
Wegmans is making the case that it charges less for groceries than Food Lion and Harris Teeter, both of which have a strong presence in the Charlotte region and are locally based.
In an advertisement sent to Charlotte-area residents ahead of opening the new 110,000-square-foot store, Wegmans claims that the 250 most frequently purchased items it carries cost 20% more at Harris Teeter. That same group of products costs 8% more at Food Lion, according to Wegmans, which currently runs four stores in other parts of North Carolina.
Wegmans also noted in the mailer that it offers “our best values every day” on basics like chicken breasts, broccoli and pasta sauce through its “Hot Zone” pricing strategy.
Kroger-owned Harris Teeter’s headquarters are in the Charlotte suburb of Matthews, North Carolina, which is approximately 12 miles away from Wegman’s Charlotte store. Food Lion, which is owned by Ahold Delhaize USA, is based in Salisbury, North Carolina, about 60 miles from the new Wegmans.
Macroeconomic pressures have weighed heavily on conventional grocers like Kroger, Albertsons and Ahold Delhaize. Even typically high-performing regional chain Publix has seen its sales growth slow, underscoring the challenges these chains face as they strive to connect with price-conscious shoppers.
In a reflection of the intense grocery industry competition in the area immediately surrounding the new Wegmans, the grocer pointed out in the mailer that it based the comparison on prices in early August at locations its rivals operate within a few minutes’ drive. Those stores include a Food Lion about 3 miles from the Wegmans store and a Harris Teeter located just a mile away.
Harris Teeter also recently sent out a mailer portraying its stores as places to save money. The mailer includes four coupons good for $10 off a $50 purchase, valid during several periods in October.
Harris Teeter is also using the mailers to remind shoppers that its local stores have wine bars and full-service Starbucks coffee shops.
Those aren’t the only grocery stores that Wegmans will compete against in the Charlotte area. Publix also has a strong presence with several stores in the region. One of the Florida-based supermarket chain’s stores is about 3 miles away from the new Wegmans.
In addition, the new Wegmans is within about 4 miles of a Walmart supercenter and approximately 5 miles from an Aldi.
Wegmans, which runs 115 stores in nine states and Washington, D.C., is reportedly planning to build a second store in the Charlotte area. The grocer has agreed to purchase land for a store it plans to develop in Cornelius, North Carolina, about 20 miles north of the city, The Charlotte Observer reported in September.
Caitlin Mullen contributed reporting.
