Here's another sign that Virginia will be a combat zone for Publix

Aug 22, 2016, 7:36am EDT Updated Aug 23, 2016, 3:12pm EDT

Ashley Gurbal KritzerSenior ReporterTampa Bay Business Journal

The entrance of Publix Super Markets Inc. into Virginia looks even more fraught with competition.

German discount grocer Aldi announced last week that it will build a regional headquarters and distribution center in Virginia's Dinwiddie County, which is just south of Richmond.

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The stakes just got higher for Publix in Virginia.

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Aldi has 32 stores in Virginia and wants to add another 60 in the next five years, its CEO told the Richmond Times-Dispatch. That means Aldi is putting a major focus on Virginia at the same time as Lakeland-based Publix.

Publix set its sights on Virginia this year, announcing two stores there in February and plans to buy 10 more stores in the Richmond area — former Martins Food Markets — in July.

When the acquisition of the Martins stores was announced, Publix CEO Todd Jones said in a statement that the deal was part of the grocer's "aggressive growth plans" for Virginia. As Publix grows its retail footprint, it means job growth at its headquarters in Lakeland — the majority of jobs created by a new store are in support facilities, including those in Lakeland.

Aldi, long known for its private label goods and no-frills approach to grocery shopping, could present a stumbling block for Publix's plans. Virginia is already uncharted territory for Publix — it's the first time the grocer will face off against New York-based Wegmans Food Markets. Aldi's plans add another layer of competition for Publix.

While Aldi has been in the U.S. since the 1970s, it's only recently become a threat to mainstream grocers like Publix.

Aldi has stepped up its selection of organic and natural products — a segment that's helped Publix reel in more shoppers and steal market share from players like Whole Foods Market Inc. in recent years.

In March, Aldi announced it would start taking credit cards. It previously accepted only cash and debit cards. It also added "healthier checklanes," eliminating the typical impulse-buy junk food from the cash register area.

All of these things are meant to retain the middle and upper class customers who started shopping at Aldi during the Great Recession — and so far, continue to do so.

"Between same-store sales growth and new stores, Aldi is probably the hottest mainstream food retailer right now," Jim Hertel, senior vice president at Willard Bishop, an Inmar Analytics Co., a Chicago-based food retailing consulting firm, previously told the Tampa Bay Business Journal.