Publix makes progress on Virginia expansion

Jan 26, 2017, 7:40am EST

Ashley Gurbal KritzerSenior ReporterTampa Bay Business Journal

Publix Super Markets Inc. is making progress on its expansion into Virginia.

The Lakeland-based grocer has pulled permits to renovate four of the Martin's Food Markets Inc. stores it is buying in the Richmond area, the Richmond Times-Dispatch reports.
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Publix is making moves in Virginia

CHARLOTTE BUSINESS JOURNAL

In early 2016, Publix announced it would start building stores in Virginia, its first new state in four years. The expansion was accelerated in July, when Publix was able to pick up 10 Martin's stores in the Richmond area as the result of a merger between Ahold USA Inc. and Delhaize Group.

Publix will spend close to $16 million renovating those stores, according to building permits cited by the Times-Dispatch. The grocer hasn't yet confirmed opening dates for the stores, a spokeswoman told the Times-Dispatch.

Virginia, and especially the Richmond area, is becoming one of the most competitive grocery regions in the country. For the first time ever, Publix will face off against cult favorite Wegmans Food Markets Inc., which is based in upstate New York. Wegmans, known for its cavernous stores with a vast selection of prepared foods and in-store bars and restaurants, opened two stores in the Richmond area in 2016.

Lidl, a German discount grocer with big growth plans for the U.S., has also confirmed a location in Richmond. Trader Joe's and Aldi have a presence there as well. And Publix's biggest competitors — Kroger Co. (NYSE: KR) and Walmart Stores Inc. — both have stores in the area.

"They’re probably recognizing the customer service segment of the food market is underserved," David Crawford, assistant vice president of retail services with CBRE Group Inc. in Richmond, previously told the Tampa Bay Business Journal about Publix. "Historically our market leaders have been Food Lion, Martin’s, and Walmart Neighborhood Market's made a pretty big push, too."