Publix in Hixson intensifies competition for consumer dollars

A new $10 million Publix Super Market becomes the latest grocery store to land in the Hixson market, and the result of increased competition could be seen in the wallets of area consumers, industry experts said.

“New grocery competition is in nearly every case a benefit to the shopper,” said Lorrie Griffith, editor of the grocery industry publication The Shelby Report. “The grocers who are already there want to hold on to their customers, so they may offer more or better deals on products or even special coupons.”

The new 54,340-square-foot supermarket opens today at the corner of Hixson Pike and Cassandra Smith roads, joining longtime Hixson-area stores Food Lion, Aldi and Bi-Lo, which in May debuted a Super Bi-Lo.

Lakeland, Fla.-based Publix entered Chattanooga in December with a store in East Brainerd.

Publix spokeswoman Brenda Reid said the chain believes the growing Hixson area is the right place for a second location, and the store will meet the competition head on.

“What we have found traditionally is that when we enter a market, the supermarkets around us get better, they begin to tweak their product mix, their service campaign,” Ms. Reid said. “So I think the customer wins when a new player comes into the market.”

Ms. Griffith said a clustering of supermarkets similar to that happening in Hixson took place recently near her home in Georgia. The stores there responded for weeks by sending out discount coupons that would lure shoppers in their doors and away from competitors.

In December when Publix announced the opening of its Hixson store, an official with Food Lion said she recognized that competition is a good thing, citing low prices and a focus on service as the company’s strengths.

German-based supermarket chain Aldi operates a location on Highway 153. The discount chain has grown in recent years and plans to open 100 stores in the United States next year.

“Traditionally, Aldi does well in competitive markets and certainly Chattanooga is a competitive market for us, and we’re seeing that continue to increase,” said Aldi spokeswoman Martha Swaney.

Aldi uses different approaches to maintain its discount-pricing reputation, where some prices are as much as 50 percent less than in other stores, Ms. Swaney said. The stores offer only about 1,400 items at any given time, doesn’t have a pharmacy and uses a cart deposit system in which shoppers “rent” a shopping cart for a quarter and get their money back when they return the cart.

Customers also are encouraged to bring their own bags, or buy them for a nominal charge at the store.

“That is a cost that is typically built into other traditional grocery stores,” she said.

A new Super Bi-Lo that replaced a smaller location sits just a few miles away from Aldi. Bi-Lo, based in Mauldin, S.C., has been expanding as part of a systematic growth plan in the area. A company spokesman said the company does not comment on competitors, but the store remains focused on providing good value and low prices to its customers.

Like other supermarkets, Publix focuses on service and competitive pricing, Ms. Reid said, and the store will continue to double coupons and honor coupons from competitors. The store will have a bakery, deli, pharmacy and fresh meats department and will have 76 employees.