Chattanooga: Publix marks 1st year Grocers gain as dining out becomes luxury in recession

A year after opening in the Chattanooga area, Publix is drawing shoppers and is still getting to know the community.

“We attribute that to us still growing in that market and customers are getting to know who we are,” said Brenda Reid, media director for Publix Super Markets.

Last December, Lakeland, Fla.-based Publix opened its first Chattanooga-area store on East Brainerd Road, at the entrance to Hurricane Creek, inside the former Winn-Dixie.

Sometime next year, Publix officials will have a better understanding of East Brainerd customers’ food preferences during various seasons, Ms. Reid said. That will help the retailer stock more of the types of foods people enjoy. It takes about a year to compile that data, she said.

In October, Publix opened a store at the corner of Hixson Pike and Cassandra Smith Road, and earlier this month unveiled a third store on Snow Hill Road in Ooltewah.

For now, Publix does not have plans for adding stores in Chattanooga, Ms. Reid said. The chain hopes to add market share as customers become acquainted with it, she said.

Grocery stores are holding on in the slow economy in part because consumers eat at home more than they dine out, said Lorrie Griffith, editor of The Shelby Report, a grocery industry publication.

“Most grocers see this (economy) as an opportunity to attract people who don’t do much grocery shopping,” she said.

Grocers are finding ways to draw shoppers who are strapped for cash, Ms. Griffith said, such as offering special deals and customer convenience. Kroger has offered free gas for people buying gift cards. Bi-Lo has opened Super Bi-Lo stores in Chattanooga to provide one-stop shopping for busy customers, she said.

Bi-Lo officials have described its stores as more customer friendly, with added natural foods, ready-to-go meals and premium food selections.

The first local Super Bi-Lo opened in February on Ooltewah-Ringgold Road. Ooltewah, Hixson, Red Bank and East Ridge also have Super Bi-Los.

Ms. Reid said she cannot say whether Publix’s strong sales are because of customers checking out the new stores or whether they are opting to dine at home more because of the economy.