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FOOD LION STILL LEADING IN SALES; TARGET CLIMBS TO NO. 4

June 21, 2008 12:15 am

BY CATHY JETT

Target apparently has scored a bulls eye with Fredericksburg-area food shoppers.

The discount chain finally hit the No. 4 spot for total grocery sales between April 1, 2007, and March 31, according to a new survey by Food World magazine.

Target, which had never been among the top five chains here, edged out out CVS and Shoppers Food Warehouse for the honors. But it's still far behind front runners Food Lion, Giant Food and Wal-Mart, the trade publication's editors found.

While Target does not comment on sales data for specific stores, spokeswoman Sonja Pothen said that the chain constantly looks for ways to remain competitive through pricing and such features as its Grab 'n' Go snacks and meals and user-friendly packaging, such as resealable chip bags.

Food World's survey could show an even greater shakeup in 2010 since Wegmans will have entered the market. The high-end grocer is slated to open a store in Celebrate Virginia South by next summer.

Current market leader Food Lion rang up $281.5 million in sales last year. That was $11.1 million, or 4.11 percent more, than in 2006.

"We believe that through our different banners--Food Lion, Bloom and Bottom Dollar Food--we touch everything consumers expect and want in a grocery store," said spokeswoman Karen Peterson. "Our continued objective is to provide a great shopping experience for all our customers and never stop recreating ourselves to better meet their needs."

Things were not so rosy for Landover, Md.-based Giant Food, which saw its sales slip despite opening two Super Giants last year, in Banks Ford on U.S. 17 near Geico and in Harrison Crossing North, which is on State Route 3 in Spotsylvania County.

Giant's sales at its seven stores here fell from $173.6 million in 2007 to $166.56 this year, a drop of 4.23 percent.

Giant Food spokesman Jamie Miller said the chain plans to complete the roll-out of its everyday low price initiative later this year, which should help strengthening its market position by creating more value for customers.

"We will also ensure that each store's product offering is tailored specifically to that community's buying patterns, and we will carefully listen to our customers' requests so that we can continue to offer a great shopping experience," he said.

Wal-Mart, too, saw its sales drop, although not as significantly. Its five stores here went from ringing up $147 million in sales in 2007 to $145.3 million, a -1.17 percent change. The dip began last year when a Super Target opened in Cosner's Corner. It's just a few miles down U.S. 1 in Massaponax from the Wal-Mart in Southpoint II.

Wal-Mart will begin construction this summer of a long-awaited Supercenter along U.S. 17 near Geico and Stafford Village Lakes, but it will be smaller than originally announced a couple of years ago.

"The change is due to a shift in company philosophy. Bigger isn't always better when it comes to serving the needs of our customers," spokeswoman Kelly Hobbs said recently. "We've found that a smaller Supercenter can be a better fit for certain communities."

The Stafford store is expected to be completed by next summer. A sixth one could be in the offing for the proposed 900-acre Wilderness Crossing business park on State Route 3 in Orange County.

Other competitors for area residents' food dollars include drugstores and convenience stores as well as such grocery chains as Shoppers Food Warehouse and Ukrop's.

CVS' 15 Fredericksburg-area stores raked in last year's fifth-largest total in area food sales: $68.3 million. That put it head and shoulders above rival Rite Aid, whose 13 stores here pulled in $46.7 million.

Both will face stiffer competition when Walgreens, the nation's No. 1 ranked drugstore chain, begins its foray into the area. The first local Walgreens will open by Thanksgiving at James Madison Highway and Montanus Parkway in Culpeper, and the next at Harrison Crossing South by February, weather permitting.

Meanwhile Wawa outdistanced competitors 7-Eleven, Sheetz and Fas Mart by racking up $56.5 million at its 15 gas station here. Its closest rival, 7-Eleven, pulled in $34.4 million at its 29 local stores, while Fas Mart's 14 stores and Sheetz's six stores collected $15.7 million each.

Shoppers Food Warehouse, which has stores in Central Park and Stafford Marketplace, posted $58.4 million in sales; Ukrop's store on State Route 3 had $24.14 million. Newcomer ALDI's stores in Four-Mile Fork Shopping Center and Culpeper got $9 million in sales, while Great Valu, which has two stores in Westmoreland County, had $10 million.

Cathy Jett: 540/374-5407
Email: cjett@freelancestar.com