Food Lion held off its rivals in the highly competitive Richmond grocery market to rank first in sales for the third consecutive year, despite seeing its percentage of sales fall. Meanwhile, Kroger increased its share, and Martin's Food Markets' results dropped slightly.
No. 4 Kroger, which entered the Richmond market in 2000, saw its local market share increase by nearly a percentage point as it aggressively sought former Ukrop's customers after the chain was sold to Martin's last year, according to an annual study released Monday by the industry publication Food World.
No. 2 Martin's, which took over the former 24 area Ukrop's stores, saw its market share drop slightly to 15.16 percent from a revised figure of 15.64 percent last year. The survey also showed that the chain increased sales by $7.2 millionto $489.34 million from the prior period — it was owned most of that time by Ukrop's.
Despite its No. 1 spot, Food Lion's market share dropped to 18.06 percent from 19.29 percent in the prior reporting period. Still, the company had $582.9 million in sales.
Food World published the list in its June issue. The results are for the 12 months that ended March 31.
Jeffrey W. Metzger, Food World's publisher, said Kroger's strong growth — its market share grew to 12.05 percent, and its local sales jumped $44.8 million — could be attributed partly to its all-out effort to lure customers, refurbish stores and cut prices.
"Kroger has clearly done the best job," he said.
A Kroger spokeswoman declined to talk about the Food World report, citing competitive reasons.
Food Lion took the top spot three years ago from Ukrop's, which had held it for more than 20 years.
"We remain committed to this market and have made a number of investments in the Richmond market, including remodeling 50 stores, expanding our produce selection and increasing products throughout the stores, such as natural and organic items," said Frankie Marshburn, director of operations for Food Lion in the Richmond market.
Wal-Mart, the nation's largest nontraditional grocery retailer, was ranked No. 3, increasing its local market share slightly.
Jim Scanlon, Martin's regional vice president, said the sales number could be higher, but each of the 24 area stores closed for one week last year as the chain remodeled and rebranded all of the former Ukrop's stores. But unlike Ukrop's, Martin's stores are open on Sundays and sell beer and wine.
"Right now, we're where I thought we would be," Scanlon said, adding that "all of our recent trending has been positive and indicates we're growing in market share."
Scanlon said he's happy that figures are up, given that the chain cut prices across the board by an average of about 5 percent.
Metzger said Martin's could have done better if not for Kroger's push to cash in on Ukrop's departure from the market.
"Kroger did a good job of meeting Martin's head-on," he said.
Market share is a key indicator of how well grocers are doing in the Richmond area's fiercely competitive$3.23 billiongrocery market.
An indicator of just how competitive the market is is the hundreds of millions spent by grocers in the past three years.
Royal Ahold NV, Martin's parent company, bought Ukrop's stores for $140 million and then spent millions more remodeling each of its 24 Richmond-area stores. Kroger is in the midst of an $81 million program to remodel and expand its area stores, including opening a 92,000-square-foot store in the Short Pump area last year. Food Lion has remodeled all of its area stores in the past couple of years, though the company would not disclose how much it spent.
But there is a concern that the market will get too competitive, which could hurt grocery retailers, Metzgersaid.
"Even though Richmond remains the fastest-growing market in the mid-Atlantic region, it has become the Noah's Ark of the mid-Atlantic, with at least two of every type of retailer and retailing style ready to set sail," Food World said in its analysis of the numbers.
The growth of nontraditional grocery retailers continues to be a concern as those chains nibble away at traditional supermarket operators, Metzger said. Among those retailers are Wal-Mart, CVS, Wawa, 7-Eleven,Costco and Walgreens.
Those retailers made up 14 of the top 20 spots and 50.7 percent of the market share.
"They're growing at three times the rate" of traditional grocers, Metzger said.
No. 4 Kroger, which entered the Richmond market in 2000, saw its local market share increase by nearly a percentage point as it aggressively sought former Ukrop's customers after the chain was sold to Martin's last year, according to an annual study released Monday by the industry publication Food World.
No. 2 Martin's, which took over the former 24 area Ukrop's stores, saw its market share drop slightly to 15.16 percent from a revised figure of 15.64 percent last year. The survey also showed that the chain increased sales by $7.2 millionto $489.34 million from the prior period — it was owned most of that time by Ukrop's.
Despite its No. 1 spot, Food Lion's market share dropped to 18.06 percent from 19.29 percent in the prior reporting period. Still, the company had $582.9 million in sales.
Food World published the list in its June issue. The results are for the 12 months that ended March 31.
Jeffrey W. Metzger, Food World's publisher, said Kroger's strong growth — its market share grew to 12.05 percent, and its local sales jumped $44.8 million — could be attributed partly to its all-out effort to lure customers, refurbish stores and cut prices.
"Kroger has clearly done the best job," he said.
A Kroger spokeswoman declined to talk about the Food World report, citing competitive reasons.
Food Lion took the top spot three years ago from Ukrop's, which had held it for more than 20 years.
"We remain committed to this market and have made a number of investments in the Richmond market, including remodeling 50 stores, expanding our produce selection and increasing products throughout the stores, such as natural and organic items," said Frankie Marshburn, director of operations for Food Lion in the Richmond market.
Wal-Mart, the nation's largest nontraditional grocery retailer, was ranked No. 3, increasing its local market share slightly.
Jim Scanlon, Martin's regional vice president, said the sales number could be higher, but each of the 24 area stores closed for one week last year as the chain remodeled and rebranded all of the former Ukrop's stores. But unlike Ukrop's, Martin's stores are open on Sundays and sell beer and wine.
"Right now, we're where I thought we would be," Scanlon said, adding that "all of our recent trending has been positive and indicates we're growing in market share."
Scanlon said he's happy that figures are up, given that the chain cut prices across the board by an average of about 5 percent.
Metzger said Martin's could have done better if not for Kroger's push to cash in on Ukrop's departure from the market.
"Kroger did a good job of meeting Martin's head-on," he said.
Market share is a key indicator of how well grocers are doing in the Richmond area's fiercely competitive$3.23 billiongrocery market.
An indicator of just how competitive the market is is the hundreds of millions spent by grocers in the past three years.
Royal Ahold NV, Martin's parent company, bought Ukrop's stores for $140 million and then spent millions more remodeling each of its 24 Richmond-area stores. Kroger is in the midst of an $81 million program to remodel and expand its area stores, including opening a 92,000-square-foot store in the Short Pump area last year. Food Lion has remodeled all of its area stores in the past couple of years, though the company would not disclose how much it spent.
But there is a concern that the market will get too competitive, which could hurt grocery retailers, Metzgersaid.
"Even though Richmond remains the fastest-growing market in the mid-Atlantic region, it has become the Noah's Ark of the mid-Atlantic, with at least two of every type of retailer and retailing style ready to set sail," Food World said in its analysis of the numbers.
The growth of nontraditional grocery retailers continues to be a concern as those chains nibble away at traditional supermarket operators, Metzger said. Among those retailers are Wal-Mart, CVS, Wawa, 7-Eleven,Costco and Walgreens.
Those retailers made up 14 of the top 20 spots and 50.7 percent of the market share.
"They're growing at three times the rate" of traditional grocers, Metzger said.
