Winn-Dixie Tries Warehouse Approach

Discussion
Jun 29, 2004
George Anderson

By George Anderson


With Wal-Mart’s Supercenters and Neighborhood Markets breathing down its neck, not to mention competition from the likes of Publix, Kash ‘n Karry, Albertsons, etc. in Florida,
Winn-Dixie is looking for any edge that can help it achieve a reversal of fortune.


The chain is hoping it has found at least one answer with its SaveRite Grocery Warehouse format stores that offer lower prices, albeit with a more limited product selection.


Winn-Dixie is set to open a new 55,000 square foot warehouse store in Jacksonville tomorrow. It replaces a similar size Winn-Dixie.


Chuck Gilmer, editor of grocery-industry newsletter, The Shelby Report, told Florida Today that the SaveRite format isn’t a fit for all markets, but Winn-Dixie
is placing these stores in areas where its traditional grocery stores have faltered.


“Our goal is to be the best in the neighborhood by providing our neighbors with the products and services they need in a convenient location close to home,” said Jim Thatcher,
SaveRite’s division president.


The SaveRite format includes a more limited assortment than traditional Winn-Dixie stores to help keep operating costs down. That doesn’t mean, however, the stores are bare bones
operations.


Florida Today reports the newest SaveRite “includes a pharmacy, deli, full-service bakery, and expanded meat and produce departments. The store also promises to carry
extensive Hispanic and Caribbean food selections. And unlike the Winn-Dixie it’s replacing, the SaveRite will have an adjoining liquor store.”


Moderator’s Comment: Does the SaveRite format improve Winn-Dixie’s outlook? What are your thoughts on the chain and
the store formats it operates?


Winn-Dixie has converted 63 stores to its SaveRite Grocery Warehouse format over the past four years according to the report by Florida Today.

George Anderson – Moderator

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